The Prophecy International Holdings Limited (ASX: PRO) share price was flying high at $1.87 this time two years ago, however, shares in the software business now change hands for just 30 cents. So what's gone wrong?
Unfortunately Prophecy posted a net loss after tax of $791,000 on revenue of $10.7 million for FY 2018, with the revenue and profit up 16% and down 140% respectively on the effort delivered in FY 2017.
The revenue lift was mainly driven by an "improved result" from Prophecy's emite business, however, the widening loss was blamed on additional investment in product development and sales and marketing expenses.
As we can see the worsening losses have dragged the share price lower as the company's two core Snare and emite software products don't deliver the sales and profits that investors and Prophecy's management hoped for.
In FY 2018 emite delivered sales of $3.3 million (up 58%), while its core Snare cyber security software product grew revenue just 4% to $6.7 million.
According to Commsec the company now has a market value of around just $20 million at 30 cents per share, which suggests it could be cheap if it's able to ever deliver strong revenue growth and profits.
