Why the Prophecy share price is rocketing today

Prophecy International Holdings Limited (ASX: PRO) has disappointed investors since 2015.

Tom Richardson

Tom is a holder of the CFA Society of the UK administered Investment Management Certificate (IMC) and has more than a decade's professional experience in the investment management industry in Australia and the UK. Tom now works as a writer and editor for TMF Australia and has two easy to remember rules of investing he likes to follow. Avoid overpaying for growth stocks and avoid paying at all for stocks that are cheap for a reason. Tom prefers growth investing over value investing and says it's not rocket science, just avoid overpaying for the best returns.

Published October 8, 2019 3:38 pm AEDT

The Prophecy International Holdings Limited (ASX: PRO) share price is up 17% to 45 cents today, but still down around 75% since 2015 after the enterprise software supplier failed to meet investors' great expectations.

The stock is up today on news that sales of its Snare software increased 67% over the first quarter of fiscal 2020 compared to the prior corresponding quarter (pcq). Sales for the quarter totalled $1.76 million versus $1.05 million in the pcq. The company flagged large sales to the likes of Gemalto, the Department of Employment, Skills, Small and Family Business (Aust) and QBE Insurance Group Ltd (ASX: QBE) in helping drive the strong quarter.

In addition to Snare software, Prophecy also sell its eMite enterprise-facing software-as-a-service platform for customer experience, contact centre & IT operations environments.

For the financial year ending June 30 2019, Prophecy reported a net loss of $1.45 million on sales from continuing operations of $12.1 million.

Other junior software businesses looking to catch the attention of investors include Alcidion Group Ltd (ASX: ALX) and Serko Ltd (ASX: SKO).

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