Rewatching the webinar has given me quiet renewed confidence in...

Rewatching the webinar has given me quiet renewed confidence in Alcidion moving forward.

Kate had answered all the questions with clarity and conviction. In particular:

• Timing of renewals and the value of those renewals in what is generally a quiet quarter explain the slight fall in new TCV sales in Q1FY23. The longer term upward trend in sales remain intact.
• FCF in Q1FY23 also incorporated higher VAT payments in the UK (reflecting improved financial performance in FY22) and cost of new hires onboard in second half of FY23. Obviously, FX would also been a factor (more positive than negative in Q1FY23). This is supporting my view that we are very close to inflection point and, all things equal, operating leverage will start to kick in the remaining quarters of FY23.
• Reiterated her confidence in the Silverlink and standing by the rationale for the acquisition. Noted that Alcidion now has access to opportunities that it would not have without this PAS component.
• Noted that some customers prefer to start off slow to test the water before adding more modules to the platform over time. Some green shoots on the cross selling and up selling opportunities.
• Reiterated her expectations for a number of significant opportunities to be executed in Q2FY23. Currently in negotiation discussions.
• Reiterated her confidence that Alcidion will achieve positive EBITDA in FY23.
• Current British PM was Chancellor when funding for many of the digital programs were approved. He is therefore seen as a big supporter of digitalisation. No risk to those funding commitments as of yet.
• Noted that Alcidion is closely monitoring it's exposure to the British pound, given a significant proportion of its revenue comes from UK. Alcidion will hedge its currency exposure when it is appropriate to do so. But it has not reach the material threshold yet.

Let us all hope for a strong finish to the end of the year.