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 down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
