8common Limited (ASX:8CO) Reports Record Q2 FY25 Revenue
Financial Performance
8common Limited reported record transaction and recurring SaaS revenue of $1.2 million, up 9% compared to the previous corresponding period. The company’s total revenue reached $1.8 million. Strong cash receipts from operations amounted to $2.3 million, while the net operating cash outflow was $12k. Annualised Recurring Revenue (ARR) stood at approximately $5.0 million as of December 31, 2024. The Average Revenue Per User (ARPU) was $29.13, reflecting a 1% decrease from the prior quarter but a 10% increase compared to the previous corresponding period. The company maintained a cash balance of $0.1 million, supported by a $1.5 million financing facility from the Executive Chairman.
Operational Highlights
Nineteen additional agencies went live with 8common’s Expense8 platform within the NSW Government, including Heritage NSW and the Environment Protection Authority. The transition of the Federal government TAPPS corporate credit card to NAB payment cards led to a deferment of some SaaS transaction revenue to Q2 FY25, with completion expected by Q3 FY25. New client activity remains robust, with tender and proposal efforts at unprecedented levels.
Executive Comments
Andrew Bond, CEO of 8common Limited, stated, “We had an extremely busy Q2 from a business development standpoint with tender and proposal activity at its strongest leading into the holiday season. This positions us well for the remaining half of the year as we anticipate responses and decisions to come through operational efficiency continued to be in focus as other areas in the business continued to be optimised. This has resulted in a marginally cash outflow quarter as we continue to deliver progress.”
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.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.