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

The ASX tech company has benefited from the work from home trend

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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%.

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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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