Ann: FY21 Results Announcement, page-4

Definitely a great improvement in the general business + the acquisition of two quality businesses leading into what will be a record FY22 for Knosys.

ARR of $8mill, I have calculated, will coincide with an increase in revenue to roughly $8.7-8.8mill annually. This, although GO unprofitable at the moment, will have massive ramifications for the overall business going forward with most costs already accounted for the past two quarters for GO, we may be on our way to full profitability every quarter & no need for quarterly reports which is a massive step for listed businesses.

Paying for LIBERO out of pocket also shows massive upside for shareholders as the company believes that it has plenty of capital to carry on business in the future without the need for additional raises. LIBERO is quietly one of the less attractive, but most accretive, solutions that will add value to Knosys in monetary terms.

Rather large outlays in marketing expenses and advertising in FY21 while remaining profitable is one of the more attractive features for Knosys too. The sales teams in the US and Australia have expanded and are now prepared to sell all three SaaS solutions in their respective territories.

I also love reading the following in the report:

In FY22, Knosys will accelerate investment in customer acquisition and cross-selling to drive future revenue growth. This increased investment in sales and marketing will be funded by existing cash resources and is expected to deliver greater revenue in FY22.

In FY22, Knosys will consolidate its global customer base to a single cloud service provider to improve operating margins and minimise the need for additional cloud resources going forward. Knosys has significantly increased its digital presence in order to drive inbound leads which can then be managed by the dedicated in-country sales teams. This focus on digital marketing and local sales strategies has significantly increased the pipeline which will drive sales growth in FY22.

Onwards and upwards. Knosys is a hidden gem of the SaaS world.