Prophecy’s ARR Hits $25.9M as H1 FY25 Revenue Climbs 1% to $11.6M

Record Revenue and Recurring Growth

Prophecy International Holdings Ltd (ASX: PRO) has announced a modest yet significant 1% increase in revenue to $11.6 million for the first half of fiscal year 2025, marking its strongest half-year performance to date. This growth underscores the company’s successful focus on its two core product lines, Snare and emite, which serve critical roles in cybersecurity and customer experience analytics respectively.

Central to Prophecy’s momentum is its expanding base of contracted annual recurring revenue (ARR), which climbed to $25.9 million as of December 31, 2024. This figure reflects the company’s strategic shift towards subscription-based revenue models, particularly for Snare, which is transitioning away from perpetual licenses to recurring subscriptions. This transition not only stabilizes revenue streams but also enhances scalability and sustainability.

AI Enablement and Market Expansion

Prophecy positions itself as a vital AI enabler, providing the secure, structured, and real-time data pipelines that AI systems require. Snare’s cybersecurity data collection and emite’s real-time data integration capabilities combine to deliver comprehensive solutions for AI-driven threat detection, operational intelligence, and customer experience analytics. CEO Brad Thomas highlighted the importance of high-quality data for AI accuracy and responsiveness, particularly in dynamic environments such as cybersecurity and contact centres.

Geographically, the company has made notable inroads in the Middle East, securing contracts with prominent clients like Emirates NBD and Riyadh Air, alongside new customer wins in Taiwan and North America. These expansions are supported by Prophecy’s channel partnerships with major technology providers including Genesys, Amazon Connect, and AWS, which facilitate global reach and co-selling opportunities.

Strategic Partnerships and Product Innovation

Partnerships have been a key driver of growth, with Prophecy signing strategic agreements with Devo Technology and Securonix to embed Snare as a preferred endpoint security solution. The Devo partnership alone has licensed over 100,000 endpoint agents, with expected annual revenue of $1.7 million from data ingestion fees. Additionally, Prophecy’s inclusion in the AWS ISV Accelerate Program further validates emite’s cloud capabilities and opens doors to new enterprise customers.

On the product front, Prophecy is investing in modernising emite’s architecture to a multi-tenant microservices platform, enhancing scalability and reducing costs. The company is also implementing a new billing and subscription management system to improve contract oversight and revenue reporting, expected to be operational by the end of Q3 FY25.

Financial Health and Outlook

Financially, Prophecy remains in a strong position with a closing cash balance of $9.1 million and zero debt as of December 2024. The company expects positive cash flow for the full fiscal year 2025, despite seasonal fluctuations in expenses and receivables. Its robust sales pipelines, $10.9 million for emite and $14.6 million for Snare, signal sustained growth potential.

Looking ahead, Prophecy plans to accelerate sales and marketing efforts globally, deepen penetration of its cybersecurity and CX analytics products, and continue its transition to SaaS and subscription revenue models. The company is also actively exploring M&A opportunities to complement organic growth.

Prophecy’s H1 FY25 results, to be audited and released on February 26, 2025, will be closely watched as a barometer of how well the company can leverage AI trends and strategic partnerships to maintain its upward trajectory in a competitive technology landscape.