Urbanise.com Limited (ASX:UBN) released its first half result for the six months to 31 December 2021.
H1 FY2022 revenue of $6.37m up 11.1% on pcp1 with strong growth in licence revenue partly offset by lower professional fees; 85.2% recurring revenue.
Licence fees increased by 25.2% reflecting new contract wins and higher revenue from existing customers due to greater utilisation and annual price rises.
Annualised recurring revenue (ARR) of $11.35m, up 24.3% on pcp driven by PICA completion and successful onboarding of major Middle East customer.
Contracted ARR of $12.3m at 1 January 2022, up 17.1% on pcp, includes estimated backlog of $0.9m.
H1 FY2022 underlying average monthly cash used of $347k (H1 FY2021: $281k) impacted by higher hosting costs due to revenue growth, investment in sales and marketing, development and implementation.
Closing cash balance of $4.73m (30 June 2021: $7.82m) and no material debt2. If include late receipts of $342k, closing cash balance would have been $5.07m at 31 December 2021.
Urbanise has progressed plans to deliver a significant reduction in cash used (up to $2.5m) over the next three quarters via new sales and backlog conversion, payments in advance from existing customers and other initiatives.