The update, issued this morning, says Riyo “is now moving into a period of first sales” and adds “For any tech development company, first sales are a watershed moment and enable the company to open up channel partnerships.”
So brace yourself for action!
The update also reveals that the company’s 2016 decision to bet big on Oracle NetSuite is paying off.
“The shift in the new business sales mix of our Australian ERP Division towards the larger more complex NetSuite solutions with longer sales cycles has continued throughout 1HY2020 with a reduced number of Australian ERP new customers won but a 25% increase in the initial average deal,” company chair Bruce Hatchman says in the update.
“In addition to higher initial revenue, we expect that the shift to larger more complex NetSuite solutions will deliver stronger future revenue and profit potential from increased consulting opportunities and reduced customer churn but increasing levels of deferred ERP revenue as we sell to larger customers whose implementation takes longer to complete.”
The update says moving to NetSuite “has not been without its complications or difficulties”, but that the company now feels it is “positioned to strongly grow the entire suite of NetSuite solutions both locally and internationally and continuing as Oracle NetSuite’s largest solution partner of NetSuite globally by number of customers managed.”
However, the company signalled its Asian expansion has been “slower than desired but we are now seeing both sales growth and recognition of the Company in Asia following the investment in our sales and marketing team over the past 12 months in Singapore. “
“The company expects to see an improving contribution from our Asian operations in 2HY2020,” the update says.
And then there’s Riyo, which Hatchman says “… provides a strong opportunity to establish a world leading solution.”
“Management are focused on revealing the true potential of this opportunity to shareholders as well as counterparties through the rest of 2HY2020 and beyond,” Hatchman concluded.