Controlled expenses while preparing for ongoing product development aimed at new vertical markets
VANCOUVER, BC,–infinitii ai inc., a leader AI-driven predictive analytics software for Smart City water and Smart Industry infrastructure applications that rely on time-series data, today released its annual financial and operational highlights for its fiscal year ended June 30, 2023. A complete set of June 30, 2023 Consolidated Financial Statements and Management’s Discussion & Analysis has been filed at www.sedarplus.ca.
Trusted since 2014 to provide environmental monitoring to many of the largest water infrastructure utilities in the U.S. and Canada, infinitii ai has evolved into a machine learning software leader that serves water utility customers in cities and municipalities including Toronto, Seattle, Miami-Dade County, Montreal, Boston, Dallas, Region of Peel, York Region and Los Angeles County, among others. The Company services customers via a trusted partner network that includes engineering and IT services companies like AECOM, Core & Main, Kerr Wood Leidal Ltd., K2 Geospatial and SCG Flowmetrix.
Management commentary
“In fiscal year 2023 infinitii ai secured the Company’s largest-ever recurring revenue contracts exceeding $1M each with large-scale water treatment facilities based on robust adoption of machine learning software products launched last October,” stated CEO Jean Charles Phaneuf. “This momentum drove a 27% increase in sales, and 33% growth in monthly average revenue from contracted and subscription customers. An impressive 21% of recurring revenue was contributed by new customers.”
“infinitii ai also experienced an exceptional overall customer renewal rate of 95%,” continued Phaneuf. “We did this while controlling expenses and readying the Company for more product introductions in new vertical markets, which will help further increase revenue and drive continued growth.”
Financial highlights and year-over-year results for fiscal year 2023
For the year ended June 30, 2023, the Company generated $2,052,475 in revenues compared to $1,617,758 for the year ended June 30, 2022, a 27% increase.
Leveraging its new line of machine learning products to secure larger annual contracts, the Company made steady progress with increasing software license revenue. Monthly average revenue from contracted and subscription customers increased by 33% in F2023 compared to F2022.
Revenue in the fourth quarter of the year ended June 30, 2023 of $511,130 increased from the comparable quarter ended June 30, 2022 of $425,426 as has been the trend for the current fiscal year. Revenue in the fourth quarter was driven by the successful renewal of the data services contract with Miami-Dade County and the new data services contract with Peel Region.
Total comprehensive loss was $2,588,381 in the year ended June 30, 2023 compared to $2,433,741 in the year ended June 30, 2022, a 6.4% increase.
During the year ended June 30, 2023, the cash required by the Company’s operating activities of $1,226,858 decreased by 23% compared to the same period in the previous year as management continued to make judicious use of cash to focus on capturing revenue opportunities from new product initiatives.
Net of $1,313,107 (2022 – $237,184) in non-cash share-based compensation, F2023 operating expenses of $3,276,555 declined 11% compared to $3,682,874 in F2022. The F2023 operating loss, net of non-cash share-based compensation was $1,224,080, the lowest annual operating loss for the Company in more than 5 years.
Operational highlights for fiscal year 2023
The Company experienced a customer renewal rate of 95% in fiscal year 2023 with 21% of recurring revenue contributed by new customers. 80% is considered a healthy Software as a Service (“SaaS”) renewal rate, while a SaaS renewal rate above 90% is considered excellent.
On January 23, the Company announced it had made the largest sale in its history with its partner SCG Flowmetrix (“SCG”) to the Region of Peel. SCG’s total contract value was $9.2M. 12% – 15% of that value is attributable to infinitii ai software that includes new machine learning products.
On Feb. 10, the Company announced it had issued a convertible debenture led by ThreeD Capital Inc. (“ThreeD”) (CSE:IDK) to propel a North American growth strategy.
The Company’s customers and engineering integration partners have asked for, and the Company is now developing and test-marketing a new line of software applications that expand real-time data intelligence from the macro view of overall operations to micro views of proactive maintenance and power usage on individual pieces of mission-critical equipment such as pumps, valves and compressors. This equipment is found in the Company’s traditional water infrastructure market, as well as in new markets including energy and manufacturing infrastructure operations.
infinitii ai software performs real-time analysis, checks flow monitoring status, sets alarms through a single interface, accepts all types of data from any source and offers predictive (what will happen) and prescriptive (what should happen) analytics. Whether it’s real-time, historic, wireless, satellite, SCADA or public data sets including USGS, NOAA and weather forecasts – it doesn’t matter where the data originates, infinitii ai transforms raw data into actionable information.
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