- We achieved quarterly revenue growth of just over 100% in the December quarter, as we continue to win and grow recurring revenue contracts.
- Our recently released 4C update shows a strong cash position, with additional government grant and second tranche placement funds to be received in the current quarter.
- An update on our strategy and priorities for 2018.
Transcript of the monthly update
Please note that this transcript has been edited slightly for readability.
Welcome shareholders to the first Gooroo Ventures update for 2018. I hope you’ve had an opportunity to take a break; we certainly have been back at work and have lots to update you on.
There are three things I'd like to cover off with you today:
- Our revenue growth for the previous quarter finishing 31 December.
- Some particulars and details around the 4C update.
- A recap on our plans for the year ahead.
100% revenue growth in the December quarter
Okay, let's get started and discuss revenue growth from this past quarter. As I've been talking about the last few months we've been progressively picking up recurring revenue deals, with the likes of KPMG, Kinetic IT and Xpand Group.
When a new contract comes on board the contract typically starts smaller and builds over time, and what we have seen this last quarter is that growth starting to kick in on our P&L.
So the net result was just over 100% revenue growth compared to the quarter finishing 30 September. Whilst we have a long way to go the entire team is focused on maintaining this momentum throughout this year.
4C update released to market
Secondly, let me provide some details about the 4C update recently released to market. This last quarter was a healthy one from a cash flow perspective, with three key drivers to that result:
- Firstly our increase in revenues that I’ve just mentioned.
- Second, the R&D tax incentive claim that we put in from last financial year, and
- Third was the placement funds that were approved in the November AGM.
Overall our cash and cash equivalents position increased by $867,000 during the quarter to leave a bank balance just shy of $1.9 million at the end of the quarter.
Separately, and in addition, we are expecting our cash balance to increase even further this quarter as the result of an additional government grant that will land this quarter, plus the completion of the second tranche of the placement.
In total we expect the funds raised from this government grant and the second round of the placement will raise just shy of an additional $1.5 million.
And of course our cash position will be further improved by the revenue growth we realised this quarter.
Our key priorities for 2018
And finally, I'd like just to give a recap on our key priorities for this year:
Firstly, we’re focused on building out our partner and reseller network. These organisations provide our sales team with leverage. They make us more efficient by providing access to prospects and professional services to our clients.
In support of this strategy we are seeing increased interest from a variety of different organisations both locally and internationally across a range of industries who want to be part of this program.
Secondly, we’re focused on growing our existing accounts. One of the key strategies we're using here is through our training and accreditation programs.
When an organisation and its people understand how to use our tools and how they can leverage them to best effect within their organisation, we increase engagement, we increase adoption across the organisation, and therefore that drives increased revenues into our business.
These training and accreditation programs are hitting the market this quarter.
And our third priority for the year is to maintain and extend our competitive advantage as it relates to our product. We’re going to be working with customers very closely to identify where the product can add further value to their business. We’re going to be bringing together some of the best academic minds.
These stakeholders are working together with our lean product development team to ensure that we continue to drive our product forward so that it adds value to our customers and importantly to our business and shareholders.
Thanks shareholders, we’re looking forward to a really strong and exciting year ahead. And as always if you have any feedback please don’t hesitate to give me a call.
Investor & media enquiries
Mr Peter Nesveda
Corporate Affairs & International Investor Relations, Intuitive Pty Ltd
Tel: +61 3 9504 8420, Mob: +61 (0) 412 357 375
Email: [email protected]