UNITH Faces Funding Crunch Despite Strong Contract Wins and User Growth
UNITH Ltd reports a 9.3% rise in Q3 FY25 cash receipts driven by its B2C subscription surge and a landmark pharmaceutical contract, alongside strategic platform upgrades and leadership changes.
- Q3 FY25 cash receipts up 9.3% to A$1.339 million
- B2C subscription revenue hits $1.25 million with 885,000+ active users
- Secured $130,000 one-year contract with global pharmaceutical enterprise
- Expanded partnerships across healthcare, retail, and AI sectors
- Initiated ISO 27001 certification and enhanced platform security features
Strong Financial Momentum in B2C Division
UNITH Ltd (ASX:UNT) has delivered a robust quarterly performance for Q3 FY25, with cash receipts climbing 9.3% to A$1.339 million, reflecting sustained growth in its B2C Subscription Division. This segment alone generated an unaudited revenue of $1.25 million, marking the highest quarterly intake in two years. The subscriber base expanded impressively to over 885,000 active users across 36 countries, underscoring the global appeal of UNITH’s AI-powered digital human offerings.
The B2C division’s lifetime value (LTV) of existing customers was estimated at $4.425 million, highlighting the recurring revenue potential without additional acquisition costs. Notably, 60% of the division’s revenue stemmed from its AI applications portfolio, which leverages proprietary digital human technology to deliver engaging, culturally relevant experiences.
Digital Human Technology Division Secures Key Pharmaceutical Contract
The Digital Human Technology Division marked a significant milestone by signing a one-year agreement valued at $130,000 with a major global pharmaceutical enterprise. This contract followed an extensive nine-month evaluation period, during which UNITH’s platform was rigorously tested against larger incumbents. The deployment involves over 10 digital humans supporting multilingual healthcare interactions in a secure environment, serving both patients and professionals.
This win not only validates UNITH’s technology architecture but also strengthens its foothold in the healthcare vertical, a sector the company views as having scalable growth potential. The division also expanded its partnership with the Alliance for Public Health, further cementing its role in public health initiatives.
Strategic Partnerships and Market Expansion
UNITH continued to broaden its ecosystem with alliances spanning retail, healthcare, and AI sectors. Collaborations with Tretail Labs target airport retail environments, while partnerships with Analytaix and Graphlogic open doors to US healthcare and niche conversational AI markets in Saudi Arabia and Brazil. The alliance with Leady in France combines avatar and voice AI technologies, unlocking opportunities in the Metaverse and banking sectors. Additionally, a strategic partnership in Uruguay aims to revolutionize HR recruitment through AI-driven digital humans.
Geographically, UNITH is testing new markets such as The Netherlands and preparing for an Australian launch in Q4 FY25. The B2C division’s expansion into Gabon, leveraging local telecom partnerships, exemplifies its strategy to tap emerging markets with youthful, digitally engaged populations.
Platform Enhancements and Compliance Progress
UNITH invested in significant platform upgrades to enhance security, usability, and integration capabilities. Key improvements include expiring video links, domain-locked white-labeling, and advanced speech recognition features. The introduction of an 'invite-only' Zapier integration enables automation of follow-up actions, with 75% of sales opportunities in February 2025 involving this feature.
Importantly, UNITH has initiated the ISO 27001 certification process, partnering with Vanta to bolster its enterprise readiness and compliance posture, an essential step for securing large-scale contracts.
Leadership and Financial Position
The company appointed Antony (Anton) Eaton as a Non-Executive Director and Rakan Sleiman as General Manager of Digital Humans, signaling a strategic focus on leadership to drive growth. Cash on hand stood at A$1.065 million at quarter-end, with an estimated 1.9 quarters of funding available. The board confirmed ongoing discussions regarding capital raising to support operations and expansion plans.
UNITH also partially divested its investment in AudioStack, realising approximately US$0.5 million while retaining a significant stake valued at US$1.54 million.
Overall, UNITH’s Q3 FY25 results reflect a company gaining traction through diversified revenue streams, strategic partnerships, and technological innovation, positioning it well for continued growth in the evolving AI digital human landscape.
Bottom Line?
With momentum building across divisions and markets, UNITH’s next challenge will be securing sustainable funding to fuel its ambitious growth trajectory.
Questions in the middle?
- How will UNITH’s recent pharmaceutical contract influence future enterprise sales and revenue visibility?
- What are the company’s plans and timelines for completing ISO 27001 certification and leveraging it commercially?
- How effectively can UNITH scale its B2C subscriber base in emerging markets like Gabon amid competitive pressures?
