Cirata (CRTA) Trading Update summary

Major contract win and product validation

• Secured the largest Live Data Migrator contract in company history, particularly in the financial services sector, marking a significant commercial and technical achievement.

• The deal is the largest implementation through IBM Big Replicate, validating the rebuilt partnership with IBM and the enterprise readiness of the product.

• The renewed IBM OEM agreement removed a $1.7 million prepaid liability, providing a fresh start and strengthening the partnership.

• Major LDM 3.0 release in Q4FY24, supporting Databricks and Apache Iceberg, enhancing enterprise appeal.

• Expanded partnerships with Databricks (DMaaS) and TD Synnex to broaden channel reach.

Financial performance and cost management

• Q4FY24 cash overheads reduced to $5.0m, with annualized run rate down to $20.4m, a 50%+ reduction from early FY23.

• Q3 FY24 cash burn was about $3 million, with Q4FY24 cash burn at $3.2m and further improvement anticipated.

• Cash position at year-end was $9.7m, with no FY25 fundraise anticipated due to improved cost structure.

• Further cost reductions expected, targeting $16-17m annualized overhead by end of Q1FY25.

• Q4 cash overhead is down from over $11 million in Q4 FY22, reflecting significant cost reductions.

Growth trajectory and operational progress

• Data Integration product growth improved from -87% year-on-year in Q1 FY23 to +180% in Q3 FY24, with expectations for continued triple-digit growth.

• Q4FY24 bookings reached $3.0m, the strongest since Q2FY22, with Data Integration bookings up 53% YoY to $2.3m.

• FY24 total bookings were $7.1m, flat YoY, but DI bookings grew 81% to $4.7m, now 66% of total bookings.

• 13 contracts signed in Q4, 6 of which were DI, showing improved contract activity and business mix.

• Inbound organic lead generation has risen to over 35 inquiries in recent months, following changes in digital marketing and product positioning.