Is the Prophecy share price a turnaround story?

Prophecy Ltd (ASX: PRO) has gone from small cap darling to small cap disaster.

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The Prophecy Ltd (ASX: PRO) share price is up 9% to 42.5 cents today after the software provider flagged that it expects financial year 2019 revenue to come in around $12.1 million, compared to $10.7 million in the prior financial year. 

According to the company's announcement: "This represents revenue growth of 13.47% against the same period last year for the combined Snare and eMite businesses and demonstrates that our strategy of organic growth by scaling through partners, optimizing sales and marketing, continued product innovation, improved customer experience and improving operational efficiency is delivering results."

As a result of the revenue growth Prophecy expects to post a small "operating profit" of $87,000 for the year and spruiked a stronger second half to the financial year as a positive sign for FY 20. 

The company has two key software products in Snare and eMite, the former a SaaS-based customer experience analytics platform, the latter a cyber security related software product. 

It also has a mixed history as a public company going from small cap darling to small cap disaster as shares tumbled from $2.50 in November 2016 to 42.5 cents today. As such it falls into the turnaround bucket. 

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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