Prophecy (ASX:PRO) share price rockets 22% on major US health deal

Businessman taking off in rocket-fuelled office chair

The Prophecy International Holdings Limited (ASX: PRO) share price is on the move this Thursday. The computer software applications and services company announced a major deal that has seen investors snapping up its shares.

At the time of writing, the Prophecy share price is up 22.41% to 71 cents. Earlier in the day, it hit a fresh 52-week high of 74.5 cents.

A huge win for Prophecy

In today’s statement to the ASX, Prophecy advised it has signed a deal with United States-based health insurance company, Humana Inc (NYSE: HUM).

Founded in 1961, Humana is one of the biggest health insurance providers in the United States market. The company is ranked 41 on the Fortune 500 list, holding a market capitalisation of more than US$50 billion.

The deal will see Prophecy provide its software-as-a-service (SaaS) platform, eMite, to Humana for an initial 3-year period. This is expected to generate a minimum of $1.784 million in annualised recurring revenue (ARR), totalling $5.518 million.

eMite is a real time and historical customer experience and contact call centre analytics platform. The software product helps businesses visualise their customers’ pathway and understand the level of happiness during the journey.

The innovative platform aims to assist large enterprise and government customers to maximise customer service and revenue opportunity.

Last year, eMite was sold in more than 14 countries to a range of customers in the Genesys, Amazon and Avaya ecosystems.

CEO Brad Thomas commented on the news fuelling the Prophecy share price:

We are delighted to welcome Humana as a new eMite customer. Given Humana’s standing as one of the strongest participants in the US healthcare market, we are excited by the opportunity to strengthen Humana’s ability to provide high-quality, whole-person healthcare and support superior outcomes for patients across all of its lines of business.

A contract of this nature is material to Prophecy as it, along with other recently-signed eMite customers, boost the annualised recurring revenue (ARR) for the eMite business to more than A$10 million. This growth reflects our continuous improvement of eMite’s functionality as large enterprise and government have embraced cloud services.

Prophecy share price summary

Despite today’s massive gain, the Prophecy share price mostly travelled in circles over the past 12 months. However, following the latest contract win, its shares are now up around 35% for the period.

Based on the current price, Prophecy presides a market capitalisation of roughly $49.35 million, with approximately 64 million shares outstanding.

The post Prophecy (ASX:PRO) share price rockets 22% on major US health deal appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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