Skyfii Ltd (ASX:SKF, OTC:SFIIF) executed a strategy to invest for growth and scale over the past 18 months via a combination of strategic acquisitions and allocation of capital to build its sales and service delivery capability globally.
The company, which helps organisations activate the power of their data through technology and human ingenuity, has expanded its customer footprint, driving annual recurring revenue (ARR) to $16 million, up 14% year on year.
Skyfii CEO and executive director Wayne Arthur said in the company’s annual report: “FY22 has been a year of investment into our operating model and resource base as we scale our operations to deliver operating leverage in FY23 and accelerated, profitable growth in the years beyond.”
FY22 saw Skyfii make several strategic investments into its operating model, which have created a scalable platform for more profitable growth in the future.
During FY23, the company’s attention will be focused on initiatives aimed at creating more efficiency within its cost base, to scale more cost-efficiently, alongside delivering strong organic revenue growth to bring the business back to profitability at all levels, including and most importantly, cash flow.
CrowdVision acquisition
In Q4 FY21, Skyfii expanded its scale and breadth via the strategic acquisition of CrowdVision, a leading crowd analytics software company providing passenger flow, queue monitoring and management solutions to the airport sector.
The acquisition diversified Skyfii’s product offering and added a new technology into its portfolio.
Importantly, the acquisition of CrowdVision consolidated Skyfii’s position as the leading provider of venue analytics in the global transportation vertical.
The acquisition provides a platform for Skyfii to expand its customer base globally, particularly in the lucrative airport vertical in the USA and EMEA.
Contract value growth
Skyfii’s investment in growth has considerably increased the scale and breadth of its operations.
During FY22, the company converted over $15.8 million of total contract value (TCV) via a range of new contracts and contract extensions.
The Americas and EMEA accounted for over 58% of the TCV converted during the year, reflecting the opportunity that these regions represent.
Skyfii’s 12-month rolling pipeline remains very strong at about $33 million.
Currently, the company has about $3.8 million sitting in the final stages of contracting and then a larger pool of just over $7.1 million of deals in the client evaluation stage that are one stage back from being contracted.
Over 15% of the pipeline has been generated in the past three months which is a positive reflection of the investment into Skyfii’s sales team and the company’s decision to invest for growth.
Outlook
Skyfii’s pipeline of venues including airports, commercial properties, quick service retail (QSR) chains, municipalities and stadiums remains strong and well advanced, and in conjunction with its cost efficiency initiatives, is expected to ensure long-term, sustainable and profitable growth.
Specific areas of focus for the Skyfii team in FY23 will include:
focus on near-term conversion across CrowdVision and Skyfii sales pipelines in the key growth verticals of airports, stadiums and event centres;
maintain growth in other verticals including Corporate Offices, Retail, Retail Property, Universities, Schools and Municipalities;
full integration of the CrowdVision technology solution into the Skyfii offering and retirement of the legacy platform;
resolution of supply chain issues that impacted 2H FY22 project closures;
cost rationalisation and efficiency initiatives including offshoring talent to deliver material cost savings and maintain margins; and
deliver ARR growth to >$20m in FY23 and deliver sustainable positive cash flow.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
