Cirata (CRTA) Trading Update summary

Trading performance and bookings

• Q2 2024 bookings reached $1.7m, up 143% sequentially and year-on-year, with 16 contracts signed and 44% from new and growth contracts.

• DevOps software accounted for 63% and Data Integration for 37% of bookings; significant renewals included a $592,000, 3-year deal with Oppo.

• Deal slippage affected Q2, with some large deals now expected to close in H2, aligning with customer timelines.

• Cash position stood at $9.1m as of 30 June 2024.

Strategic initiatives and cost management

• A new cost efficiency program targets reducing annualized costs from $23m to $20m by end of 2024, down from $45m in March FY23.

• Strategy review validated focus on Data Integration and DevOps, with separate teams and targeted geographic sales structures.

• The company is executing 8-12 quarter tactical growth plans while developing long-term strategies for hybrid cloud and AI markets.

Sales and marketing momentum

• Marketing activity increased, with a 200% rise in LinkedIn ad performance and 80% growth in organic search traffic in Q2 over Q1.

• Improved lead generation and higher-quality pipeline reported, with the new GTM organization gaining traction.

• Sales team maturity is enhancing deal closure predictability, though establishing predictable sales cycles remains a priority.