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Fast start to FY24: Linius Technologies expands customer base

In the ever-evolving landscape of technology, staying at the forefront and continuously attracting new customers is a crucial factor for a company’s growth.

Linius Technologies Limited (ASX:LNU) is no exception.

Linius Technologies is specialises in the development, commercialisation, and licensing of the Linius Video Virtualization EngineTM, the world’s first video virtualisation engine, along with various technology products and software solutions.

As the third quarter of 2023 unfolds, Linius is achieving significant milestones and expanding its customer portfolio.

Breaking New Ground with NAHL TV

One of the standout achievements for Linius is the impending launch of NAHL TV, currently in its beta phase and gearing up for a full-scale launch. The North American Hockey League (NAHL) is renowned as the top junior hockey league in North America, and Linius has teamed up with Hockey Technology Partners to create a personalized channel app for their over-the-top (OTT) service. What’s impressive is that this cutting-edge app was developed in just three weeks. It’s a significant breakthrough for Linius as it enters the competitive US market.

The rapid progress from contract signing to going live took only eight weeks, showcasing Linius’s efficiency and agility. Setup fees have already been invoiced, and recurring fees are slated to commence this quarter, with variable fees following suit in the next quarter. Furthermore, discussions are actively underway for potential collaborations with additional leagues, indicating a promising future.

Expanding Reach with New Deployments

In a bid to expand its reach further, Linius has successfully gone live with Inverleigh for SANZAAR, the organization responsible for managing and promoting key rugby competitions across the Southern Hemisphere. Content creation is in full swing, with final setup and recurring fees billed in September, set to be paid in the second quarter. Additionally, Linius is scheduled to go live in October for New Zealand Rugby, demonstrating a busy and fruitful period ahead for the company. Discussions for new federations and archives are already in progress, underscoring Linius’s commitment to growth.

Innovation Drives New Products

Innovation is at the core of Linius’s operations, and one of its upcoming launches is “Whizzard Highlights,” slated to make its debut in September. Cricket Australia (CA) will be the first customer to implement this exciting product. Worth noting is that additional setup fees will be invoiced, with recurring fees set to kick off in October.

Whizzard Highlights is anticipated to be a significant driver of user adoption and variable fees, presenting upsell opportunities with all Whizzard customers. This new product not only strengthens Linius’s market presence but also taps into the extensive existing market for automated highlights. It offers packages that can be created as soon as a game becomes available, including an option for instant highlights for historical games. With features like auto-curation, chronological or action-based grouping of highlight clips, and metadata-rich views, this product is poised to be a game-changer in the industry.

Transformational FY23 Sets the Stage

Looking back at FY23, it was undoubtedly a transformational year for Linius Technologies Limited. The company achieved record milestones, boasting its highest rate of new customer acquisition. Linius’s solutions were validated in 15 sports across 40+ federations, with a diverse customer base spanning all three target geographies. Notably, Linius launched Whizzard for sport archives and Linius Media Solutions, both of which delivered remarkable financial performances.

Annual cash receipts surged to $496k, reflecting an impressive 82% year-on-year growth. Annual billings, on the other hand, showed a 54% reduction, totaling $485k. FY23 marked a pivotal turning point for Linius, setting the stage for even greater achievements.

FY24 Begins with Promising Growth Prospects

The onset of FY24 brings with it the promise of substantial growth for Linius. The company has secured approximately $725k in contracted billings over the next 12 months from existing contracts, excluding variable fees. This figure underscores the significant growth potential stemming from existing contracts alone. Additionally, with opportunities for upselling, cross-selling, and expanding master agreements, Linius’s growth trajectory remains highly promising.

Bigger Deals, Faster Growth

Linius has consistently demonstrated that each new deal it secures paves the way for even larger agreements in the future. This trend has become a defining feature of the company’s operations, accelerating the pace at which new deals are executed.

As Linius Technologies Limited continues to forge ahead in the tech industry, it’s clear that innovation, expansion, and a commitment to delivering value to its customers are at the forefront of its strategy. With a successful FY23 behind it and a promising start to FY24, Linius is poised to make a significant impact in the dynamic world of technology.

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