Cirata (CRTA) H1 2024 earnings summary

Executive summary

• Revenue increased to $3.4 million for H1 FY24 from $3 million in H1 FY23, with improved product mix and new contract growth, and operational transformation plans now embedded.

• Adjusted EBITDA loss narrowed to $8.5 million from $14.8 million year-over-year, reflecting significant cost reductions.

• Cash overheads reduced to $11.7 million, with headcount and non-headcount cost rationalization.

• Cash at period end was $9.1 million, not including a subsequent $7.2 million equity raise completed in July 2024.

• Statutory loss from operations reduced to $9.6 million (H1 FY23: $18.8 million loss); loss after tax decreased to $8.9 million (H1 FY23: $22.5 million).

Financial highlights

• H1 revenue reached $3.4 million, up from $3 million year-over-year.

• Bookings for H1 FY24 were $2.4 million, down from $2.8 million in H1 FY23, with 31 contracts signed (16 new/growth).

• Deferred revenue at 30 June 2024 was $2.3 million, up from $1.9 million in H1 FY23.

• Cash overheads reduced to $11.7 million, reflecting significant cost rationalization.

• Loss per share improved to 8 cents from 34 cents in H1 FY23.

Outlook and guidance

• FY 2024 bookings guidance maintained at $13–$15 million, with Q4 expected to be heavily weighted.

• Management targets cash flow break-even as the company exits FY24.

• FY 2025 planning underway, with a focus on continued profitable growth.

• FY24 cash overheads expected at ~$23 million, reducing to ~$20 million annualized by year-end.

• Pipeline quality and lead generation improving, with focus on recurring revenue and sales execution.