Cirata Q1 bookings fall, 'steady build' in pipeline

Bookings in Q1 came to $700,000, down from $2.1m at the same time a year earlier when it benefitted from a large renewal, with DevOps/Application Lifecycle management software accounting for 51% of bookings and Data Integration software making up the other 49%.

Cirata, formerly known as Wandisco, stated that, in total, fifteen contracts were signed in the quarter, nine of which were new and growth contracts - including two new contracts in DevOps, secured with Onsemi and Marvell Technology. The new subscription contract with Onsemi in DevOps represents the first positive step in the reboot of the unit, while new DI contracts included deals with the Bank of Nova Scotia, Westpac Banking and a large African financial services group. Two deals secured in Q1 were greater than $150,000 in value.

The AIM-listed group added that deal slippage remained an issue, with some orders that were targeted for FY23 Q4 closing in early FY24 and, similarly, some of the deals targeted for Q1 also slipping, with the expectation that these will now conclude in Q2. Cirata stated that establishing greater sales cycle predictability remains "a key priority for management", to move beyond the current non-linear growth trajectory.

Cirata management also reconfirmed its FY24 bookings guidance of $13.0m-15.0m, representing year-on-year growth of 81%-108%.

"As previously reported, management expects that bookings will be H2 weighted in FY24 as the pipeline builds and the sales team becomes more proven. The FY24 bookings guidance, which management reconfirms today, is based on an expectation of higher levels of sales activity, both direct and through partners, and on the current sales pipeline. The new GTM organization is bedding down and leads from partners and customer activity levels are increasing and contributing to pipeline growth," said Cirata.

As of 1045 BST, Cirata shares were down 1.52% at 48.75p.

Reporting by Iain Gilbert at Sharecast.com