Beonic’s ARR Hits $17.8M with 75.5% Gross Margin, Targets Q4 Cash Flow Breakeven
Beonic Limited reported a 6.5% increase in annual recurring revenue to $17.8 million and a significant gross margin improvement to 75.5%, driven by new global contracts and disciplined cost management. The company targets cash flow breakeven in Q4 FY25 and an EBITDA margin of up to 15%.
- Annual Recurring Revenue (ARR) grows 6.5% to $17.8 million
- Gross margin improves to 75.5%, up from 68.5% in FY24
- Key contract wins with major airports and corporations in USA, APAC, and UK
- Strategic partnership formed with e& UAE to expand WiFi analytics in Middle East
- Forecasts cash flow breakeven in Q4 FY25 and EBITDA margin between 12-15%
Strong Revenue Growth and Margin Expansion
Beonic Limited has delivered a solid Q3 FY25 performance, reporting a 6.5% year-on-year increase in Annual Recurring Revenue (ARR) to $17.8 million. This growth is underpinned by new customer acquisitions and expansion within existing accounts, reflecting the company’s growing footprint in the IoT and analytics space. Notably, recurring revenue for the quarter reached $4.4 million, marking a 6.4% increase compared to the previous corresponding period.
Equally impressive is Beonic’s gross margin improvement, which climbed to 75.5% year-to-date, a substantial uplift from 68.5% in FY24. This margin expansion signals effective cost control and operational efficiencies, positioning the company closer to sustainable profitability.
Key Contract Wins Cement Global Presence
Beonic’s momentum is further evidenced by a series of significant contract wins across multiple regions. In the United States, the company extended its partnership with JFK International Airport’s Terminal 4, deploying digital display and mobility cart tracking solutions to enhance passenger experience. Additional US wins include contracts with Verizon for LiDAR installation to improve operational safety and efficiency, Charlotte Douglas International Airport’s queue management expansion, and an ongoing partnership with electric vehicle manufacturer Rivian.
In the Asia-Pacific region, Beonic secured expansions at Adelaide and Christchurch Airports, as well as a contract with the Western Australia Museum for its people counting technology. The UK market also saw renewals with Land Securities and Norwich Football Stadium, reinforcing Beonic’s footprint in retail and entertainment venues.
Strategic Partnership and Leadership Enhancements
Highlighting its strategic ambitions, Beonic announced a partnership with e& UAE (formerly Etisalat), a leading telecommunications group, to introduce innovative WiFi analytics solutions in the Middle East. This alliance is poised to reshape market dynamics and expand Beonic’s reach into a new, high-growth region.
On the leadership front, the company appointed Marc Thompson as Chief Technology Officer, bringing expertise from his successful tenure at NewBook. Additionally, Michael Pearce took on the role of Company Secretary alongside his CFO duties, signaling strengthened governance as Beonic scales.
Financial Discipline and Outlook
Despite a net cash outflow from operations of $114,000 in Q3, impacted by $320,000 in one-off cost-cutting expenses, Beonic’s cash management remains disciplined. Staff and corporate costs were reduced to $2.7 million, supporting the company’s path to cash flow breakeven, which is now forecast for Q4 FY25. The company anticipates exiting the fiscal year with an EBITDA margin between 12% and 15%, reflecting a clear trajectory towards profitability.
Beonic’s $29 million qualified deal pipeline and targeted sales initiatives underpin its growth strategy for the remainder of FY25. The company’s priorities focus on solidifying its leadership in IoT solutions for airports and retail, enhancing product adoption, and maintaining operational agility to stay competitive.
CEO Commentary
CEO Billy Tucker emphasised the company’s progress: “Our sustained gross margin improvement and disciplined cost management demonstrate our commitment to financial stability and profitability. The growing ARR and key contract wins across multiple sectors highlight the strength of our global product offering. We remain focused on accelerating product adoption and converting our strong deal pipeline to deliver exceptional outcomes for our customers.”
Bottom Line?
Beonic’s disciplined execution and strategic partnerships set the stage for a pivotal Q4 as it aims to turn growth into profitability.
Questions in the middle?
- How effectively will Beonic convert its $29 million qualified deal pipeline into revenue?
- What impact will the e& UAE partnership have on Beonic’s market share in the Middle East?
- Can Beonic sustain its improved gross margins while scaling operations globally?