Prophecy International : Strong H1 FY22 Growth Across eMite and Snare

Company Announcement - 17 January 2022

Strong H1 FY22 Growth Across eMite and Snare

Highlights

• Strong sales growth in H1 FY22, with the $7.33m in new business achieved during the half-year representing growth of 141% compared to H1 FY21
• Significant boost in new customer activity for eMite, the Company's SaaS-based customer experience and contact (call) centre analytics platform, with H1 FY22 eMite 1CV sales +445% year- on-year to $3.6m
• Prophecy has delivered strong increases in sales growth for Snare, the Company's cybersecurity software product line, signing new Snare contracts in H1 FY22 worth more than $3.73m, +41% year-on-year
• Group annualised recurring revenue (ARR) of $15.5m as at 31 December 2021, with unaudited closing cash balance of $10.8m

Sydney - 17th January 2022 - Business software developer Prophecy International Holdings Ltd (ASX: PRO, "Prophecy" or "the Company") is pleased to advise of continued operational progress across its business units.

eMite Performance

Prophecy's focus on international marketing continues to deliver significant growth in contracted sales for eMite, the Company's SaaS-based customer experience and contact (call) centre analytics platform.

In H1 FY22, the Company signed new eMite customer contracts covering more than 30,900 seats with aggregate 1st year contract value (1CV) of more than $3.59m.

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This new customer activity represents a significant boost from the activity levels recorded in the prior comparable period, with H1 FY22 eMite 1CV sales +445% year-on-year.

This includes significant customer wins across several of Prophecy's targeted geographies and sectors through both the Genesys and Amazon Connect ecosystems, including Health, Retail, Finance & Government through customers like DHS/Services Australia, Humana, Petco, Bausch Health, City of San Diego, LA County & Lion Pty Ltd.

The US continues to be the stand out market accounting for 90% of new sales in H1.

The Company is achieving an excellent spread of eMite customer activity beyond the Company's largest account, US health insurance company Humana Inc. (contract win announced 7 October 2021), with H1 FY22 eMite 1CV sales excluding Humana +75% year-on-year.

The rising new client activity has continued to boost eMite's base of annualised recurring revenue (ARR), growing to $10.7m as at 31 December 2021, an annualized growth rate of more than 90%.

Prophecy holds a positive view for continued growth in customer activity on its eMite platform as its sales and marketing function boosts the recognition of eMite's ability to help businesses visualise and understand their customer's journey.

Snare Performance

Prophecy's focus on the US and Europe as key growth drivers continue to deliver strong increases in sales for Snare, the Company's cybersecurity software product line. Through Snare, the Company provides critical government recommended or mandated security controls, including cyber threat detection, security information and event management (SIEM) and centralised log management.

In H1 FY22, the Company signed new Snare contracts with more than 140 enterprise clients, generating sales of more than $3.73m, including Yum Brands, Worley Parsons, UPS, Thales, Boeing, Metlife, US Dept Treasury, LA County, AT&T, UK Royal Navy and Energizer.

This customer activity represents strong growth from the activity levels recorded in the prior comparable period, with H1 FY22 Snare sales +41% year-on-year.

Following Prophecy's recent development of a subscription-based sales model for Snare, the Company expects the share of subscription-based recurring revenue to rise over time for this business unit, as customers begin to take advantage of the Opex/Capex flexibility provided by this new model.

Business Momentum

Prophecy has delivered strong sales growth in H1 FY22, with the $7.33m in new business achieved during the half-year across eMite 1CV sales, Snare perpetual and Snare subscriptions representing growth of 141% compared to H1 FY21.

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This sales growth is having a positive impact on the Company's base of ARR, which continues to expand favorably.

			$15.54M
	640,000
	$10.74M
Legacy Subscriptions	457,635
eMite Subscriptions	10,671,324
Snare Maintenance Renewals
Snare Subscriptions	7,632,610

	3,624,772
2,652,582
-	606,586

F Y 2 1

H 1 F Y 2 2

The Company ended December 2021 with an unaudited cash balance of $10.8m, providing adequate funding to pursue its key focus areas for FY22, which include the following priorities:

• Continue to expand sales and marketing to address growth opportunities in global markets
• Increase eMite sales to large Enterprise customers through both Genesys and Amazon Connect
• Increase penetration of Snare products with new and existing customers, focusing on opportunities for Snare in the Government & Defense segment in the USA
• Increase Snare partner revenue from Security services partners including MSSP's, Security Operation Centre (SOC) providers and Extended Detection and Response (XDR) platform providers
• Deliver the strong pipeline of product innovation already in progress for both Snare and eMite
• Continue the managed transition of the Snare business to recurring subscription-based licensing
• Achieve ISO 27001 security certification
• Identify and execute on acquisition opportunities to accelerate growth and increase capability, capacity and coverage

Authorised by: Brad Thomas, CEO

Investor and Media Contact:

Brad Thomas, CEO

M [phone]

1. [e-mail]

1. https://www.prophecyinternational.com/

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About Prophecy International Holdings Limited

Prophecy International Holdings Limited (ASX: PRO) is a leading Australian designer and developer of innovative business software. Through its two products, Snare and eMite, Prophecy serves the large and growing global markets of Contact Centre Analytics and Cyber Security.

CX Intelligence by eMite provides a SaaS based real time and historical analytics platform, dashboards, wallboards, KPI and orchestration products for Customer Experience, Contact Centre environments.

The Snare product suite is a highly scalable platform of Centralised Log Management and Security Analytics products designed to enable customers to detect and manage cyber threats in real time and maintain regulatory compliance.

Prophecy operates globally from Adelaide and Sydney in Australia, London in the United Kingdom and in Denver, USA.

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