Any current/future new fundraising through debt or equity?

The company is engaging with investors, including institutional investors, with the intent to bring them in. However, raising funds through investors is not the top priority at the moment. There is no explicit mention of current or immediate plans for new fundraising through debt or equity. The focus appears to be on business transformation, growing monthly recurring revenue (MRR), and achieving steady growth. Management is monitoring costs and optimizing business operations to improve financial health before pursuing significant fundraising.

Any current/future capex/capital investment/strategic investment?

The company is focusing on a major transformation towards cloud adoption and fully integrated cloud solutions, especially targeting tier one and tier two customers. There is a significant investment in developing the Hyper Sense AI platform and new digital trust products. The focus is on building and executing in high-growth large areas with future revenue growth expected from March onwards. Capex or strategic investments are not explicitly detailed on page 23, but the ongoing product development and cloud infrastructure indicate continued capital allocation in technology and platform enhancem

Future growth expectations in sales/revenue/volumes?

The company expects steady growth in Monthly Recurring Revenue (MRR), which stood at USD 2.3 million as of September-end. Quarterly recurring revenue from MRR is approximately USD 7 million, with a one-time revenue backlog of USD 14.7 million. There is an anticipated significant increase in MRR by March following new deal closures. New business lines, particularly those associated with the Hyper Sense AI platform, are expected to drive revenue growth. Current new business contribution is under 10% but targets reaching 10-15% revenue share to attract more investors. Revenue growth is expected t

Future growth expectations in earnings/operating earnings/profits/EPS?

The company is transitioning from a license to a subscription-based business model, with focus on growing Monthly Recurring Revenue (MRR), currently at US$2.3 million as of September 2022. Management expects gradual MRR growth quarter-on-quarter, with significant increases anticipated around Feb-March 2023 as new deals start to contribute. Overall revenue growth is expected to be moderate initially, with MRR growth being the key performance indicator stabilizing before overall revenue improvement. EBITDA was marginally positive in Q2 FY23, but net losses are still reported; free cash flow is n

Current/ Expected Orderbook/ Pending Orders?

The company no longer reports a traditional order book or 12-month order backlog as it's no longer relevant to the new subscription-based business model. Instead, the key metric is Monthly Recurring Revenue (MRR); as of end September, MRR stood at US$2.3 million. The contracted backlog (one-time revenue) is about US$14.7 million. This backlog corresponds to one-time revenue and does not reflect the recurring subscription revenue. The focus is on growing the MRR quarter-on-quarter as new business areas and the Hyper Sense platform scale. Some new deals are expected to start generating Monthly R

Subex LtdQ2 FY23IT - Software

Subex Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹17.74P/E: 31.1Market Cap: ₹1.0K CrSector: IT - Software

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

N/A

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

The company expects steady growth in Monthly Recurring Revenue (MRR), which stood at USD 2.3 million as of September-end.
Quarterly recurring revenue from MRR is approximately USD 7 million, with a one-time revenue backlog of USD 14.7 million.
There is an anticipated significant increase in MRR by March following new deal closures.
New business lines, particularly those associated with the Hyper Sense AI platform, are expected to drive revenue growth.
Current new business contribution is under 10% but targets reaching 10-15% revenue share to attract more investors.
Revenue growth is expected to rise gradually over the next two quarters with QoQ MRR growth becoming more visible.
Despite short-term dips due to subscription model transition and customer budget squeezes, long-term sales growth is projected due to increased customer base and new product adoption.
Growth in new areas projected to be about 3x of last year's performance by year-end.

Margin guidance

Category 3

The company is transitioning from a license to a subscription-based business model, with focus on growing Monthly Recurring Revenue (MRR), currently at US$2.3 million as of September 2022.
Management expects gradual MRR growth quarter-on-quarter, with significant increases anticipated around Feb-March 2023 as new deals start to contribute.
Overall revenue growth is expected to be moderate initially, with MRR growth being the key performance indicator stabilizing before overall revenue improvement.
EBITDA was marginally positive in Q2 FY23, but net losses are still reported; free cash flow is negative due to operating losses.
Management requests investor patience through this transition period, aiming for steady growth from new business streams and products.
Employee costs are controlled and are unlikely to scale linearly with revenue growth, aiding margin improvement when revenues expand.
No immediate top priority on new institutional investments, but engagements continue to strengthen financial stability.

See what Subex Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

Yes

The company is engaging with investors, including institutional investors, with the intent to bring them in.
However, raising funds through investors is not the top priority at the moment.
There is no explicit mention of current or immediate plans for new fundraising through debt or equity.
The focus appears to be on business transformation, growing monthly recurring revenue (MRR), and achieving steady growth.
Management is monitoring costs and optimizing business operations to improve financial health before pursuing significant fundraising.

Order book

The company no longer reports a traditional order book or 12-month order backlog as it's no longer relevant to the new subscription-based business model.
Instead, the key metric is Monthly Recurring Revenue (MRR); as of end September, MRR stood at US$2.3 million.
The contracted backlog (one-time revenue) is about US$14.7 million.
This backlog corresponds to one-time revenue and does not reflect the recurring subscription revenue.
The focus is on growing the MRR quarter-on-quarter as new business areas and the Hyper Sense platform scale.
Some new deals are expected to start generating Monthly Recurring Charges (MRC) revenue by February-March, leading to significant MRR growth from the March quarter.
Overall, the company views MRR as the critical measure for orderbook/pending revenue visibility moving forward.

See what Subex Ltd management said on order book — free account, 30 seconds.

Capex plans

The company is focusing on a major transformation towards cloud adoption and fully integrated cloud solutions, especially targeting tier one and tier two customers.
There is a significant investment in developing the Hyper Sense AI platform and new digital trust products.
The focus is on building and executing in high-growth large areas with future revenue growth expected from March onwards.
Capex or strategic investments are not explicitly detailed on page 23, but the ongoing product development and cloud infrastructure indicate continued capital allocation in technology and platform enhancements.
The company is managing costs tightly, especially engineering and employee-related expenses, which are largely static but optimized.
Investor engagement is ongoing to potentially bring institutional investors on board, but it is not the top immediate priority.

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Subex Ltd Q2 FY23 Earnings Call Analysis

Revenue guidance

Fundraise plans

Capex plans

How does Subex Ltd rank in IT - Software?

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What Subex Ltd's management said in earlier quarters

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