Orcoda reports strong ongoing growth in Q1 FY24

• Orcoda (ASX:ODA) posts customer receipts of $9.4 million and a total income of $9 million for Q1 FY24
• This represents a 38 per cent and 55 per cent increase compared to the previous corresponding quarter, respectively
• The company also recorded a positive cash flow of $1.8 million for the quarter
• ODA’s smart transport technology solutions gain momentum, resulting in cash and cash equivalents of $5.5 million and available working capital of $6.5 million at the quarter’s end
• ODA shares are up 12.5 per cent, trading at 31.5 cents at 12:08 pm AEDT

Orcoda (ASX:ODA) has posted customer receipts of $9.4 million and a total income of $9 million for the first quarter of the 2024 financial year.

These figures represent a 38 per cent and a 55 per cent increase to the previous corresponding period, respectively.

Not only that, the company recorded a positive cash flow of $1.8 million for the quarter.

Orcoda’s international partner Future Fleet, was officially acquired in July of this year and has since performed strongly, ushering a revenue of $900,000, which included $600,000 in recurring subscription fees for the quarter.

In the transition toward fourth and fifth-generation networks (4G/5G) ODA’s smart transport technology solutions have garnered significant momentum, resulting in cash and cash equivalents of $5.5 million and an available working capital of $6.5 million at the quarter’s end.

Management comment

“The strong financial results were attributable to increased recurring SaaS revenues, contribution from the Future Fleet acquisition and large transport infrastructure contracts being executed by our wholly-owned subsidiary Betta Group,” ODA Managing Director Geoff Jamieson said.

“Future Fleet is performing very well, and the team is busy working with existing and prospective customers doing the 3G to 4G/5G upgrades to their vehicle fleets prior to the proposed 3G network shutdown on 30 June 2024.

“These upgrades and existing customer upgrades provide our teams with various product integration and cross-selling opportunities.”

Looking ahead

The company continues to manage the development of its vehicle management and carpooling app, and it has teamed up with Queensland rental company, Koala Cars, which controls a fleet of more than 1000 cars.

Orcoda has agreed to offer a trial for the company to test the app, potentially opening the door for a new Australian partnership.

ODA shares were up 12.5 per cent, trading at 31.5 cents at 12:08 pm AEDT.