Gathid Ltd (ASX:GTH) Announces Q2 Business Updates and Growth
Business Growth and Customer Acquisition
Gathid Ltd (ASX:GTH) has reported significant progress in its business during the second quarter of FY25. The company added two new customers, bringing its total to 18. Annual Recurring Revenue (ARR) has also increased to $1.55 million, marking a 12% rise from the previous quarter and a 92% increase since last year.
Sales revenue surged to $390,000 in Q2, up from $272,000 in Q1. This growth can be attributed to new contracts and additional services revenue from existing clients.
Financial Performance and Cash Position
Gathid closed the quarter with $5.64 million in cash and equivalents, a decline from $6.78 million in Q1 due to increased operational costs. Operating activities showed a net cash outflow of $1.16 million, influenced by costs related to business-critical hires and higher administration expenses.
The Board remains optimistic about operational growth while managing costs effectively in line with the FY25 budget.
Awards and Market Recognition
Gathid received noteworthy recognition, winning the Start-up of the Year award at the Australian Information Security Association (AISA) 2024 Cyber Security Awards. CEO Peter Hill stated, “Winning the 2024 AISA Start-up of the Year Award underscores our uniqueness and emergence in the identity market.” This award reflects Gathid’s commitment to setting new standards in identity governance.
Challenges with Sale of RightCrowd Business
The company continues to address challenges stemming from the sale of its physical security business. A dispute with the buyer, Bloom, regarding final settlement calculations remains unresolved. Gathid’s management is actively exploring options to secure a satisfactory resolution for shareholders.
The Board is committed to maintaining a strong growth trajectory while ensuring steady management of expenditure.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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