We’re just halfway through FY23, but it seems that the performance of Skyfii (ASX: SKF) has been a roaring success so far with several impressive achievements under its belt. After notably securing technology deployment contracts with McDonalds and major airports around the world not too long ago, the omnidata intelligence company proudly delivered positive cash flow within the second quarter of FY23, thanks to a net cash inflow from operations of $3.1 million.
Quarterly cash receipts from customers went up as high as 38% compared to previous corresponding period (pcp) to $9.5m, predominantly driven by collections of outstanding renewals across EMEA and North America and $1.1m in upfront payments for non-recurring capital works.
Recurring revenues went up by 10% on pcp to $4m, while total operating revenues dropped by 5% to $5.7m. By the end of Q2, Skyfii secured $6.6m cash at bank, which is a 55% increase compared to Q1 FY23.
All in all, the highlight of Skyfii’s achievement in H1 FY23 would be the cash receipts of $15.9m which was up 44% on pcp, delivering a positive operating cash flow of $2.2m.
Commenting on the positive result, Skyfii CEO and Managing Director Wayne Arthur said, “The strong momentum is being driven by a number of recent contract wins, the benefits of cost-saving initiatives and further growth in our recurring revenue.”
“Our rolling 12-month deal pipeline now stands at over $26m in advanced-stage deal value, which provides a solid revenue platform for the company in the second half as public venues including malls, stadiums, train stations and airports across the globe are increasingly relying on crowd analytics and occupancy management solutions to deliver real-time data to drive improved efficiency in their operations.”
Skyfii utilises LiDAR and thermal imaging technology to unify data points on one proprietary platform and ingests data from a diverse range of technologies including WiFi, Camera, People counting, LiDAR, CCTV and IoT devices. These datasets will be combined with contextual data like weather, retail sales and sociodemographic information to improve operational performance for retailers, airports, stadiums, smart city infrastructure and other public and commercial venues.
Skyfii also offers additional data insight augmentation through their Data & Marketing Services offering, in which the Company helps clients to harness more value from the data itself.
Among Skyfii’s projects throughout the quarter, the Company is deploying restaurant monitoring technology to McDonald’s with a total contract worth $2m, as well as queue management and passenger flow solutions among existing and new airport clients. With $3.6m in new business Total Contract Value (TCV) converted during Q2 FY23 and a total of $6.7m in TCV delivered across H1 FY23, Skyfii continued positive momentum in the airport vertical in the northern hemisphere with over AU $2.8 million in new contracts secured during the half.
Skyfii has secured new contracts with new clients such as Newark International Airport (USA), Stadiums Queensland (Australia), Victoria & Alfred Waterfront (South Africa), and Rockefeller Center NY (USA), also renewing contracts with existing clients such as Metro Washington Airports (USA), Woolworths (South Africa), and Nando’s UK.
Having delivered a positive cash flow performance in H1 FY23 well ahead of guidance, Skyfii remains confident that it is on track to maintain a sustainable cash flow breakeven position and deliver positive EBITDA in H2 FY23. Skyfii will spend the rest of FY23 focusing on ongoing business development around airports, stadiums, retail and quick service restaurants, continued cash management and efficiency initiatives, including offshoring of talent, to deliver material cost savings and to maintain margins, as well as announcing more contract wins by the end of H2 FY23.
Clara is a Business Reporter for The Sentiment.
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