ActivePort Group (ATV) H2 2024 earnings summary

Executive summary

• Revenue for FY24 was $14.97m, down 23% year-over-year, reflecting a strategic pivot from managed services to high-margin software revenue streams.

• Net loss after tax increased to $9.45m, up 178% from the prior year, primarily due to a one-time goodwill impairment of $8.07m related to non-core managed services assets.

• The company completed its transition to a pure-play software business, merging managed services into SaaS and focusing on three core revenue streams: Telco software licenses, SaaS, and GPU orchestration.

• Operating profit was achieved for the first time, driven by higher gross margins and reduced delivery costs, despite a lower top line.

Financial highlights

• Gross profit was $8.10m, with a gross margin improvement due to the shift to software revenue.

• EBITDA improved to $(0.41)m from $(0.90)m in FY23, reflecting cost reductions and business restructuring.

• Net operating cash inflow was $0.17m, a turnaround from a $1.28m outflow in FY23.

• Basic and diluted loss per share were $(3.02)c, compared to $(1.24)c in FY23.

• Net tangible assets per share declined to $(0.06)c from $0.22c.

Outlook and guidance

• FY25 will focus on recurring software revenue, with new projects in the telco sector and expansion in B2B SaaS and GPU orchestration.

• The company expects to become cash flow positive within 12 months, leveraging a strong sales pipeline and new product launches.

• Marketing campaigns in Australia, the Middle East, India, and Asia are ongoing and yielding positive results.