The recently released annual report of data solutions company archTIS Ltd reveals that the company had a strong 2024 financial year, enjoying a 54% increase in revenue and a positive operating cash flow of A$1.6 million.
Record-breaking cash receipts
The company, which specialises in secure collaboration of sensitive information, achieved record-breaking cash receipts exceeding A$12 million, a 159% improvement on 2023.
This revenue growth was driven by a 58% increase in licensing revenue and a 72% rise in service revenue, resulting in a 79% expansion in gross margin dollars and a gross margin percentage of 60%.
In addition to its financial growth, archTIS surpassed A$4 million in annual recurring revenue (ARR) and reported a 21% reduction in annual operating expenses.
The company's success was further bolstered by continued wins with key clients, including the Australian Department of Defence, NATO and global defence suppliers. These achievements led to a net annual revenue growth of 104%.
A strategic partnership with tech giant Microsoft (NASDAQ:MSFT) also played a crucial role, with archTIS being named a finalist in the Microsoft Security Excellence Awards 2024 for Compliance and Privacy Trailblazer.
CEO Daniel Lai said: “Our financial results for FY24 have been strong, with record revenue growth, positive operating cash flow and most other key metrics meeting our expectations.
"Consistent market tailwinds"
“Throughout the year, consistent market tailwinds have assisted us in making strides in enhancing our product offering and expanding our market presence.
“Our expanded client base, including several high-profile government and enterprise clients, underscores the trust and confidence that the market has in our capabilities.
“We are confident in our strategic direction and our ability to capitalise on the growing demand for our advanced data-centric solutions as we head into a new financial year.”
"Record-breaking FY24"
COO and US president Kurt Mueffelmann said: “Thank you to our shareholders, customers, partners and most importantly, valued employees as we close out a record-breaking FY24.
“We look forward to FY25 as we continue to innovate and enhance our product offerings to meet the evolving needs within the market while continuing to expand our global market presence.
“A strong pipeline and defined opportunities across the global defence and defence manufacturing markets and proven capital spending discipline will allow us to solidify our position in securing the world’s most sensitive information.”
Investors have welcomed the strong financial report with shares as much as 8.46% higher on the ASX intra-day to A$0.077.