Knosys (ASX:KNO) – Overview of FY21 resultsCraig Foley
Knosys Limited (ASX:KNO) Managing Director John Thompson discusses FY21 results and the outlook for FY22.
Lauren Evans: Hi. This is Lauren Evans for the Finance News Network. Joining me from Knosys (ASX:KNO) is Managing Director John Thompson. John, welcome to FNN.
John Thompson: Thanks Lauren. It's nice to be with you.
Lauren Evans: Congratulations, John, on a strong performance of Knosys in FY21. Can you give us a brief overview of the year?
John Thompson: The past year for Knosys has been a really busy one. And it has been transformational in a lot of ways. In FY21 we took our first steps at building a global technology company, with multiple SaaS offerings, through our two acquisitions. In March, we completed the acquisition of GreenOrbit, a leading intranet and employee experience solution provider. Our FY21 results include a three-month impact from this particular acquisition. And just this past week we completed the acquisition of LIBERO, a leading library management software provider. This acquisition did not impact our FY21 revenue results, but we will get a 10 month contribution from this in our FY22 results going forward. So, now we have three fantastic SaaS solutions in our product portfolio. We have over 380 customers across 14 countries, generating over 8 million in annual recurring revenue.
Lauren Evans: Thanks, John. So, how does this flow through to your financial results in FY21?
John Thompson: Yes, look, it's been a very good year for us. All of our key metrics have moved in the right direction. Our revenue was up 46 per cent year-on-year to 4.6 million. Now, if we exclude our acquisition transaction costs, which are about half a million dollars, then our underlying core business operations were profitable in FY21 at a level of about 16K, so essentially break even. This is a pretty significant improvement for us, from our previous 900,000 loss last year, and a key milestone for the company, as it shows its evolution and progress. In the past year, we also saw a significant improvement in our net operating cash position. We had an inflow this year of $580,000, which was up over a million on the previous year. The cash balance therefore increased to 6.5 million as at June 30, and this balance has further increased to 7.8 million as of 31 July. So, as you can see, it was a strong performance year all around for the company.
Lauren Evans: And can you tell us a bit more about your growth strategy?
John Thompson: Yeah, certainly. Our primary objective is to maximise shareholder value by increasing the growth of our high-margin annuity-based income streams. So Knosys's growth strategy is therefore based on four key pillars. The first one is to expand usage by our existing customers. What I mean by this is to release new features that enable us to drive uplift, with more users, more sites, and in more geographies. The second pillar is new customers in our global markets. So, we're going to focus on increasing our market penetration in existing markets, particularly leveraging where we have an established presence. The third one is to expand our proprietary intellectual property. We are going to invest in significant product development programs in the coming years, and particularly targeted towards clients and what we believe the market is looking for. And the fourth pillar is our mergers and acquisitions. We'll continue to drive the company's acquisition strategy, to expand our capabilities, be they technology, be they location, with a view to increasing shareholder value through more recurring revenue and growth of that recurring revenue.
Lauren Evans: And what is the outlook like for FY22?
John Thompson: Over the next year, we will accelerate our investment in capturing new customers and uplift from existing customers, to drive future organic revenue growth. This will involve greater investment, as I said previously, in product development, in sales and marketing, which will be funded by our existing cash reserves, and is expected to accelerate our revenue growth in FY22 and beyond. We will also continue assessing complementary acquisitions to support our market position as a multiple SaaS solution provider, particularly targeted at managing information and knowledge. We see ongoing demand for cloud-based digital workplace solutions like the ones that we have, particularly those that deliver both employee efficiency or address customer engagement and experience. So, we're really optimistic about the growth opportunities ahead of Knosys.
Lauren Evans: Well, John Thompson, thanks so much for the update today.
John Thompson: My pleasure.
Copyright 2021 – Finance News Network
Source: Finance News Network