Prophecy (ASX:PRO) share price rockets 32% on surging growth

A group of happy office workers throw papers in the air and cheer after seeing the Latrobe Magnesium price skyrocket 38%

The Prophecy International Holdings Limited (ASX: PRO) share price is soaring today, up 32% to $1.61 in early afternoon trade.

This comes after the computer software applications and services company reported significant growth across its 2 product lines, Snare and eMite.

Snare is Prophecy’s cybersecurity software product line. It offers security monitoring, threat detection, security information and event management, and centralised log management. eMite is a SaaS (software as a service)-based customer experience and call centre analytics platform.

What growth figures were reported?

The Prophecy share price is surging after the company reported continued operational progress across its business units.

Prophecy said its subscription-based annualised recurring revenue (ARR) is up more than $1.8 million in November to date. Its total ARR now exceeds $15.4 million.

Breaking that down, ARR from its eMite segment stands at $10.5 million, with $4.1 million in ARR from its Snare business and another $600,000 from Legacy subscription revenue.

The company cited a number of new recurring customers for eMite, such as agricultural (Farmlands), finance (BPER Banca), and health (Providence St Joseph’s). It said there are more deals on the table it still expects to close in November.

To date for FY22 eMite sales growth has come in at 800% compared to the same period in FY21.

According to Prophecy:

In cloud migration, eMite is riding a significant growth trend. We expect that COVID-19 will accelerate cloud migration for the next several years as enterprise customers seek to enable working from home… We will add vendor partnerships similar to Genesys and Amazon for eMite.

As for Snare, FY22 sales growth to date is up 46% from the same period in FY22. The company said its new subscription sales model for Snare “enhances flexibility for customers and supports continued growth” in its base of ARR.

The Prophecy share price could also be getting a lift from the company’s outlook for the full 2022 financial year. It stated, “eMite and Snare’s strong performance is expected to continue in FY22”. Prophecy forecasts approximately $13 million in sales for eMite and $20 million for Snare.

Prophecy share price snapshot

The Prophecy share price has been red hot this year. Over the past 6 months alone, its shares have surged by around 210%. For comparison, the All Ordinaries Index (ASX: XAO) gained around 4.5% in that same period.

Over the past month, Prophecy’s shares are up by more than 50%.

The post Prophecy (ASX:PRO) share price rockets 32% on surging growth appeared first on The Motley Fool Australia.

Should you invest $1,000 in Prophecy right now?

Before you consider Prophecy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Prophecy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

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.

from The Motley Fool Australia https://ift.tt/3rpAlW3

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s