Prophecy Shares Soar 29% Higher as it Boasts More Revenue Growth (ASX:PRO)

Software small-cap Prophecy International Holdings Ltd [ASX:PRO] is on fire today!

The PRO share price has broken through the $100 million market cap milestone thanks to a 29.51% jump in share price today, rising strongly on the back of some improved recurring revenue figures.

It’s not the first big move from this stock recently either, with Prophecy shareholders up close to 200% since late September. It makes this one hell of a short-term trade for recent investors.

So, let’s take a look at the details of this latest surge…

ARR up across the board

Like many software companies, Prophecy uses annual recurring revenue (ARR) as its key metric. It’s data that showcases its sales strength from subscribing customers.

When it comes to the latest update on this total ARR figure, Prophecy is pulling in over $15.4 million, adding more than $1.8 million in the last month (November) alone.

This was largely due to some notable contract wins for Prophecy’s eMite platform. It’s a suite that offers call centre analytics solutions for a range of customers in varying industries, including agriculture, finance, and healthcare.

And while eMite is certainly the most important part of Prophecy’s operations, it isn’t the only one…

Snare — their cybersecurity software product line — is also enjoying some strong adoption. It’s a good sign for a part of the business that has only recently become a part of the subscription sales model.

As Prophecy notes in today’s update:

Through Snare, Prophecy provides critical government-recommended or mandated security controls, including cyber threat detection, cyber forensics and centralised log management.

The Company continues to deliver growth in revenue for Snare, and following its recent development of a subscription-based sales model, has grown Snare subscription licenses to more than $0.6m in ARR and grown maintenance revenue to $3.5m in ARR.

It’s a great indication that this up-and-coming software company is multifaceted and is something that is already giving them an edge in their sales growth.

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What’s next for Prophecy?

Beyond today’s great news, the focus will no doubt be on continually growing ARR.

Because while Prophecy is doing great already, they still have plenty of potential to capture more market share. Particularly if they can showcase a strong product offering to potential customers.

For that reason, it will be interesting to see what management may have in store.

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Regards,

Ryan Clarkson-Ledward,
For Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

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