How many tabs do you shuffle across every day? Probably more than you need to. Covid and hybrid work have given rise to a slew of online tools, all designed to help you improve your work processes. However, the need of the hour is not to diversify the tool suite but to streamline it. 

That’s where Software-as-a-Service (SaaS) company Knosys (ASX: KNO) comes in with its KnowledgeIQ platform. The knowledge management platform helps companies navigate various business processes all in one place, managed through machine learning. And businesses are all for it.

The Company has secured an additional contract extension till January 2025 with telecom company Optus. The contract extension is worth over $1 million, and Optus will be using Knosys’s KnowledgeIQ platform to improve its business processes.

In April 2022, Optus finalised a contract extension with Knoysis of two years to January 2024. The latest contract extends that engagement for another year to January 2025. 

Knosys Managing Director, John Thompson, said, “This further contract extension allows us to continue our partnership with Optus and further develop the knowledge management solution to meet their future business needs. Our development focus over the next 2 to 3 years will be on furthering the capability of KnowledgeIQ to improve employee productivity and on further enhancements to its usage in customer-facing activities.”

Knosys is a Melbourne-based tech company that helps businesses manage their information. It offers knowledge management, intranet and library management solutions, using which businesses can collaborate seamlessly within the workplace.

Over the past six months, the Company has secured contract extensions with its major KnowledgeIQ customers, including ANZ Bank, Singtel and Optus. On December 2, 2022, telecom company Singtel signed a two-year extension worth over $750k and gained access to an upgraded version of KnowledgeIQ. Before that, in October, ANZ bank signed a three-year contract extension with Knosys, valued at over $5 million. Not only do these contracts boost the Company’s revenue streams, but they also enable it to make strategic investment decisions on developing the knowledge management solution further. 

In Q1 FY23, Knosys’s cash receipts hit a record high of $4.3 million, up 45% on Q1 FY22. That said, as it focused on product development, its R&D costs increased by 116% quarter-on-quarter, product manufacturing and operating costs increased by 32%, and staff costs increased by 18%. 

Its FY22 results also featured increased costs across the board. As the Company acquired library management software Libero for $3.3 million in August 2021, its cash balance fell from $6.5 million in FY21 to $3.1 million in FY22. It also generated a loss before transaction costs, amortisation of intangibles, non-cash share-based remuneration and income tax of $1.1 million, down from a profit of $16K in FY21.  

However, now, it seems like the increased costs and expenses are paying off as businesses embrace the new upgrades provided by the Company. The new contract extensions are a step in the right direction. 

Thompson added, “Knosys enters 2023 with a diversified customer base, a portfolio of software solutions, strong recurring revenues, and the opportunity to continue growing domestically and internationally.” 

All things considered, virtual work is not going anywhere. If anything, it is set to expand, and Knosys’s KnowledgeIQ platform might find even more takers in the coming years.