5:04pm, 30 May 2017 | FLLYR
During the year ended 31 March 2017, the Company's operating revenues increased by 31% to $7.0M, reflecting strong growth in the underlying business, particularly from existing customers that are extending their commitment to their use of Plexure's technology. Total revenues for the same period grew 10% to $7.3M as the go-to-market funding from Microsoft, which has been in place for the last 21 months, comes to an end.
During the last quarter of the year, the Board undertook a review of the Company’s operations and started a process of moving the business towards a profitable state as quickly as practicable, while maintaining its sales trajectory.
The strategy involves a focus on solution based business. As a result, the Company will focus on profitable recurring revenue, which is a combination of recurring license revenue and recurring support fees.
License revenue grew by 32% during the period and support revenue grew by 231%. As such, total recurring revenue has grown by 65% for the year.
The review has also had an impact on the cost base. Although total costs increased year-on-year by 3% to $13.7M, in the second half of the year the Company was able to decrease operating costs by 9%.
Costs decreased in the second half of 2017 with a reduced sales and marketing spend achieved by increasingly leveraging our channel partnerships, including Microsoft, GE Current and Samsung.
The major cost increase came in our hosting and associated IT costs, which increased 59% to $2.9m. During the financial year, Microsoft increased its Azure hosting fees by 22%, which is Plexure’s largest direct cost of sale. The Company will continue to refine the platform to reduce Azure consumption.
The net loss after tax for the year attributable to shareholders of $6,482M is 2% less than the previous year with losses narrowing in the second half of the year by 22% due to a combination of increased revenue and decreased costs. Further cost reductions are anticipated as the Company focuses on its path to profitability.
The Company will shortly embark upon a further capital raising to meet its working capital needs and will advise the market of details of that raising in the near future.
For more information please contact:
Andrew Dalziel, CFO Plexure
Mobile: +64 27 6777 575