archTIS reports strong Q2 results & record 1H24 performance

archTIS, a global provider of software solutions for secure data collaboration, has reported solid Q2 results along with record results for 1H24. The achievements of the quarter ending in December 2023 position the company for impending revenue growth while moving closer to becoming cash flow positive.

The key highlights of the reporting period show a 144% increase in quarterly revenue from the prior comparative period (PCP), with licensing revenue growing by 40% and services revenue augmented by 507% over crucial strategic accounts. The gross margin percentage recorded a dip to 44% from 57% PCP; notwithstanding this, the gross margin dollar value marked an 89% PCP improvement. Net operating cash inflows came in at $0.7M, a surge of 384% versus the prior quarter (PQ) and 165% versus PCP, allowing the company to end the quarter with $3.7M of available cash. Operating expenses for the period lessened by 40% PCP to $1.2M. During this period, archTIS also scored customer victories across BAE Systems Australia Ltd (BAESA), Australian Naval Infrastructure Pty Ltd (ANI), and KPMG.

Daniel Lai, Managing Director and CEO of archTIS stated, "During the December quarter, archTIS continued to improve financial metrics across revenue and annual recurring revenue (ARR) while reducing overall expenditures. The results place us in a strong position to meet our commitment to becoming cash flow positive for FY24. Our recent wins with BAESA and ANI demonstrate continued execution on our goal of becoming the preferred provider of policy-enforced Data Centric Security products and platforms to Defence and the Defence Industry."

In Q2, total revenue soared to $2.6M, reflecting a 144% increase from the PCP. The gross margin percentage registered a decline to 44% from 57% PCP, however, the gross margin dollar value was 89% up from PCP. The company closed the quarter with $3.7M of available cash at hand. The company's net operating cash inflows for the quarter were $0.7M, an improvement of 384% versus the PQ and 165% versus PCP. Owing to its continued cost reduction initiatives and commitment towards becoming cash flow positive in the current financial year, operating costs for the quarter stood at $1.2M, marking a reduction of 40% from $2.0M PCP.

archTIS noted considerable customer adoption during the quarter, including BAESA, who signed a contract of $528,000 (inclusive of GST) for secure collaboration and data integration capability. ANI licensed Kojensi SaaS for a total contract value of $342,540 (inclusive of GST), of which $112,200 is ARR to tackle collaboration challenges across the supply chain for navy shipbuilding facilities.

Global COO / US President of archTIS, Kurt A. Mueffelmann, stated, "archTIS is well poised for a robust second half of the year as we drive toward becoming cash flow positive. Our continued technology and product innovations for policy-enforced access management and data-centric security have expanded our opportunities within the global defence industry."