Aussie cloud specialist TZ Limited has delivered a strong quarter as security concerns reach a high level and moves towards a subscription-based business model prove a good play. Image: Getty
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Aussie cloud specialist TZ Limited has delivered a strong quarter as security concerns reach a high level and moves towards a subscription-based business model prove a good play.
Access control software provider TZ Limited (ASX:TZL) has seen its net cash generated from operating activities for Q3 top $400k.
The results are a smashing turnaround on the more than -$2.3m Q2 hit and its -$400k for the prior corresponding period (pcp).
Significant cash flows for Q3 came streaming out of receipts of some $8 million, more than offsetting manufacturing and operating costs ($4.9m), staff costs ($2.1m) and administration and corporate costs ($600k).
Q3 delivered a monthly recurring revenue base (MRR) of $235k. Group revenue for the quarter was a beat on $5m – bringing the year-to-date revenue to an unaudited $13.2m – an 11% increase on the pcp result.
TZ said bringing all customers and prospects to a comprehensive set of TZ cloud subscription services is well underway as the company continues to see a strong uptake in its cloud solution.
The company is continuing to simplify and streamline all facets of the business, as it looks to fully leverage the cloud and new partnerships to unlock opportunities in securing long-term recurring revenues.
TZ has more than $7 million worth of a backlog of orders to be delivered by June 30, 2022. The company said it is working diligently to ensure it meets customer expectations with their feature requests and its supply chain is coordinated to deliver within requested timeframes.
The TZ Labs development team and its technical operations team are being scaled up to meet many requests for new features as part of the company’s “land and expand strategy” with its large customer base.
TZ announced in April it had entered a deal with an NSW Government department to upgrade their existing lockers to the TZ smart locker system.
TZ will retrofit ~3000 existing day lockers with their patented smart locking devices, controlled by its centralised enterprise locker management cloud platform.
Vecchio said the department had several bespoke requirements which the company could address with its software-based solution.
TZ said security concerns had reached a very high level with its enterprise customers globally with threat levels increasing dramatically over the past two years.
In response, the company has elevated its TZ cloud infrastructure to be SOC 2 and ISO27001 compliant.
TZ said it was continuing to simplify and streamline all facets of the business, fully leveraging cloud, automation, and new partnerships. The company has deployed automation for onboarding systems, aligning to improve customer management and satisfaction.
In Q3, TZ streamlined its product portfolio both to reduce costs and allow the company to focus on its core growth sectors.
The company has launched a new website as it continues to evolve its brand to better attract new clients and partners.
TZ has kicked off Q4 FY22 with new appointments as it continues on its international expansion. Marco De Vries has been appointed regional sales director to lead TZ Europe, while William Dano has taken on the role of VP Sales Americas to lead the US operations.
Looking ahead, the company is forecasting a stronger second half and expects the momentum from Q3 to flow through to revenue and cashflow in the final quarter of FY22.
TZ said it was in negotiations with a range of new generation software only partners who will resell its new TZ cloud software platform, while providing their own integration and hardware services.
It expects the first of these partners to sign up this quarter as it plans to rollout software only partnerships globally over the next 12 months.
TZ has been selected for a US-based fast food restaurant trial, designed to solve efficiency issues created by the booming food delivery market provided by companies such as Uber Eats, Deliveroo and Menulog.
The company expects the trial to run for 90 days to ensure that its restaurant customers create the efficiencies that they are looking for during the in-restaurant pickup services to keep up with this fast-growing demand.
TZ said it sees the market sector as a natural fit for its TZ cloud application software suite and a very large opportunity.
This article was developed in collaboration with TZ Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
