Observations9 Jan 2025 11:56
Bookings in Q4FY24 of $3.0m = Good result it's an increase. US Bank deal was $2M so 66%.
Bookings FY24 of $7.1m (FY23: $7.2m) = No one can say this is good, it's gone backwards and is a country mile away from guidance given until early December of $12-15M. That would say that sales and SK himself have not got a "hold" of theses deals for that amount of slippage so late in the year.
13 contracts signed, of which 6 contracts relate to DI = Good news as always, noting that as the US Bank was 2.0M then those 6 contracts were a total value of $300K, hopefully land and expand accounts.
Q4 cash overheads reduced to $5.0m ( Q3FY24: $5.3m) = Not really much of a reduction, not great.
Q4 cash burn was $3.2m ( Q3FY24: $3.2m) - No reduction, poor.
Cash position as at 31 December 2024 of $9.7m = IF they close the 5-7M previously announced in H2 2025, then great, but they are going to be running pretty close to a further raise. 3M burn means by the end of September 2025 as they said it will be back end H2 loaded.
Expected annualized cash overheads reduced to $16-17m exiting Q1FY25 with actions already taken = So looking at full accounts, that means more redundancies have already taken place as that is their biggest outgoing in accounts.
DI bookings in International were disappointing as was DevOps new business. = DevOps not their preferred product going forward, so ok, International is a problem, but then again without marketing and sales functions what do you expect.
However, management is working to address the issues related to bookings slippage which impacted closure expectations throughout FY24 = That is a pitiful reason explanation, SK has been there from May 2023, laser focused on deals, if he and the 3 CRO's hadn't already got a handle on this, there is a big big problem. 3 of them worked for Oracle and they make any other software company look rubbish when forecasting.
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