Half Year 2025 Ava Risk Group Ltd Earnings Call Transcript
Key Points
- Ava Risk Group Ltd (ASX:AVA) reported a 20% increase in revenue for H1 FY '25, reaching $17 million, driven by strong performance in the Detect segment.
- EBITDA saw a significant turnaround, increasing by $2.6 million from the previous period, indicating improved operational efficiency.
- The company's gross margin improved slightly to 64%, reflecting strong profitability in its core business segments.
- Recurring revenue grew by 20% to $2.4 million, highlighting the success of the Aura Ai-X platform in generating consistent revenue streams.
- The sales opportunity pipeline remains robust, exceeding $100 million, with a solid sales backlog of approximately $8 million, indicating future growth potential.
- The company revised its FY '25 revenue forecast downward due to delays in closing deals within the adjacencies, impacting expected revenue growth.
- The Access segment experienced a decline compared to the previous period, partly due to the absence of large orders like those from dormakaba in the prior year.
- Cash flow was negatively impacted by the timing of shipments, resulting in a $400,000 decline in cash, although this was partially offset by early January collections.
- The adoption of new technology in the telecommunications adjacency has been slower than anticipated, delaying expected revenue contributions.
- The backlog is lower than it was at the end of June '24, primarily due to the delay of two large infrastructure projects, affecting short-term revenue visibility.
Welcome everyone, and welcome to the AVA Risk Group H1 FY '25 result webinar. (Operator Instructions) This call is being recorded. I will now turn the webinar over to David Cronin, Chair of AVA Risk Group.
Thanks, Alex. Good morning, everyone. I'm very happy to present the first half 2025 results to you today. As you will see, management has made significant progress in achieving its strategic outcomes for the three year plan that we set about a few years ago when Mal joined.
On the call today, Mal Maginnis, our Group CEO; Neville Joyce, our Group CFO, and they'll run you through the business and also give you a good indication of where we see the outlook for the current financial year and then beyond.
I'll also update you on a few of the strategic objectives that we set out and how we're going with the progress on those. Over to you, Mal.
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