ActivePort Group (ATV) H2 2024 earnings summary

Executive summary

• Revenue for FY24 was $14.97M, down 23% year-over-year, reflecting a strategic pivot from managed services to high-margin software revenue streams.

• Net loss after tax increased to $9.45M, up 178% from FY23, primarily due to a one-time goodwill impairment of $8.07M related to non-core managed services subsidiaries.

• The company completed its transition to a pure-play software business, merging managed services into SaaS and focusing on enterprise software licenses, SaaS, and GPU orchestration.

• Operating profit was achieved for the first time, driven by cost reductions and higher gross margins despite lower top-line revenue.

Financial highlights

• Gross profit for FY24 was $8.10M, down from $9.55M in FY23.

• EBITDA improved to $(0.41)M from $(0.90)M in FY23, reflecting significant cost reductions.

• Net operating cash inflow was $0.17M, a turnaround from a $1.28M outflow in FY23.

• Basic and diluted loss per share were $(3.02) cents, compared to $(1.24) cents in FY23.

• No dividends were declared or paid.

Outlook and guidance

• FY25 will focus on recurring software revenue, with new projects in the telco sector, B2B SaaS, and GPU orchestration for cloud gaming and AI applications.

• The company expects to realize the full potential of its software platform and achieve strong free cash flow growth.

• Marketing campaigns in Australia, the Middle East, India, and Asia are ongoing and showing positive results.