Wednesday 11th November 2020
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During the first half of FY21, the Company continued to build on the financial foundations laid down over the previous three years. Revenues have continued to grow, although the rate of growth has slowed compared to previous years as the impact of the COVID-19 pandemic on customer activity and our sales pipeline took hold. Notwithstanding this slowdown in activity, we ended the half with over 200 million users on our platform supporting customers in 60 countries in 40 different languages.
Revenues have continued to grow and along with this the associated platform costs have also increased. The Board and Senior Leadership Team (SLT) team made the decision to increase headcount to enable product development to be accelerated and undertake the platform enhancements required to support much larger user numbers and activity levels. An increased investment has also been made in the Company’s sales and marketing capability. This increase in headcount is the principal driver of cost growth and is aligned with the Company’s business strategy and capital raising plans.
During the first half of FY21, the Company’s revenue grew 23% to $14.4 million, compared with the same six-month period last year ($11.7 million). Recurring revenue (representing licence and support fees) increased by $1.7 million, or 23% to $9.0 million, while non-recurring revenue increased by $1.2 million, or 28% to $5.3 million. Non-recurring revenue represents funded development and one-off projects for customers. There has been a consistent pipeline of non-recurring revenue for several years and this will continue for the foreseeable future.
As the Company requires significant capital for its next phase of growth, in July 2020 we announced our intention to investigate undertaking an Initial Public Offering (IPO) on the ASX. Expenses associated with this process were the major driver of the increase in professional costs of $1.7 million to $2.1 million.
The net loss after tax for the period attributable to shareholders increased by $5.6 million to $4.4 million.
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