REG - Cirata PLC - Q2 and H1FY25 Trading Update

CirataAnnouncement

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RNS Number : 0896R  Cirata PLC  15 July 2025

15 July 2025

Cirata plc

("Cirata" or the "Company")

 

Q2 and H1FY25 Trading Update

 

Strong H1FY25 bookings growth of 58% YoY

Continued momentum in DI with H1FY25 Bookings up 244% YoY

Q2 cash burn significantly reduced compared to prior years

Divestiture of DevOps assets for $3.5m

Appointment of Chief Revenue Officer

 

 

Cirata plc (LSE: CRTA) today provides an unaudited trading update for the
quarter ended 30 June 2025 ("Q2FY25"), alongside further details on
operational cash control, sales enhancements, the divestment of DevOps assets,
and steps taken to simplify the business and accelerate growth.

 

 

Summary

·    Bookings Metrics

o Total bookings in Q2FY25 of $0.8m (Q2FY24 $1.7m) down 53% YoY, with H1FY25
bookings increased by 58% YoY

o Q2FY25 Data Integration ("DI") bookings of $0.7m (Q2FY24 $0.6m), a rise of
17%YoY with H1 FY25 bookings growth of 244%

·    Commercial Momentum

o DI renewal with top 5 Canadian Bank

o New partnership agreement with Microsoft Azure

§ Azure Storage Migration Program ("ASMP")

o 6 contracts signed, of which 2 contracts relate to DI

o DI 95% of total bookings value

·    Divestiture of DevOps Assets

o Cirata announces today that a purchase agreement has been signed with
BlueOptima Ltd ("BlueOptima"), a UK-based leading provider of software
engineering performance insights, post-period end for gross consideration of
up to $3.5m for the sale of Cirata's DevOps assets. This divestiture is
expected to close on or around 8 August 2025

·    Financial Discipline and Governance

o Divestiture of DevOps assets, raising up to $3.5m gross proceeds post-period
end

o Realigning the cost base from $16-17m run-rate exiting Q1FY25 to an
annualized total of $12-13m exiting Q3FY25.

o Q2FY25 cash burn significantly reduced YoY to $2.2m (Q2FY24: $4.2m)

o Unaudited cash position of $6.1m & short-term trade receivables of $1.3m
as at 30 June 2025.

 

Outlook

Our outlook communicated in March 2025 remains unchanged, with bookings
expected to be back end weighted with a similar profile to FY24 and high
growth in the Data Integration business.

 

The divestiture of the DevOps business combined with a further reduction of
the annualized overheads will bring cash overheads to approximately $12m-13m
exiting Q3FY25, which underpins the sustainability of the business model and
provides financial flexibility to invest for growth.

 

The combination of cost-saving actions, DI growth and the recent divestment of
assets reaffirms management's previous expectation that a fundraise for
working capital is not required in FY25.

 

 

Trading Update

Total bookings in Q2FY25 were $0.8m (Q2FY24: $1.7m), representing a 53%
decline YoY. DI bookings were $0.7m in Q2FY25, a rise of 17% YoY.  In total,
6 contracts were signed in the quarter, of which 2 were DI (Q2FY24: 6
contracts signed in total, of which 2 were DI). The 2 DI contracts represented
95% of the total bookings value.

 

For H1FY25 DI bookings were $3.1m, representing growth of 244% YoY with DI
accounting for 83% of bookings. Q2FY25 fell short of Cirata's internal plan as
certain opportunities slipped into the second half of 2025. The actions taken
in January 2025 to strengthen sales execution in the international region have
had a positive and immediate impact on progress. However, as outlined in the
Q1FY25 Trading Update, execution in North America has been disappointing
relative to plan. To that end, further performance improvements have been
taken in the quarter to drive sales execution across the Go-To-Market ("GTM")
function. GTM leadership across both the US and international markets has been
strengthened with the appointment of a new Chief Revenue Officer, Dominic
Arcari, on July 1, 2025. Lead generation and pipeline build improved during
H1FY25 and these ongoing improvements in pipeline build, alongside
enhancements to close planning, increased training and further investment in
sales personnel, will be led by Dominic.

 

Establishing greater sales cycle predictability remains a key priority for
management to enable Cirata to enhance its predictable growth potential.

 

 

Divestiture of DevOps Assets

Cirata announces today that it has signed an agreement to divest its DevOps
assets to BlueOptima, a UK-based leading provider of software engineering
performance insights, for a total consideration of up to $3.5m. The divestment
includes DevOps products supporting Subversion, Gerrit and Git, enabling
globally distributed developer teams to collaborate securely and efficiently
with minimal latency. The transaction is expected to close on or around 8
August 2025, subject to customary closing conditions and approvals.

 

The total consideration of up to $3.5m will be paid in cash, with $2.5m
payable on closing and up to $1.0m in December 2025, conditional on the
successful transfer of Cirata's DevOps customers to BlueOptima.

 

On the sale of the assets, Cirata retains ownership of all existing
intellectual property. As part of the transaction, BlueOptima will secure
rights to the IP under an exclusive license agreement. Although profits have
not been historically attributed to the DevOps product line, the business has
continued to perform in line with the wider Group, reflecting consistency with
historical cost structures and profitability trends. In FY24, DevOps revenue
was $3.1m.

 

This divestiture signals a total focus on the growth potential of Cirata's DI
business, the Company's core growth driver. Following this divestiture, Cirata
aims to broaden the use cases for its Live Data Migrator ("LDM") product
offering, leveraging the potential of Apache Iceberg open table formats to
offer interoperability for unstructured data across the enterprise to the
cloud. Important strategic relationships will provide an environment for
collaboration on future Cirata data orchestration platform functionality. Data
orchestration represents Cirata's vision for addressing the challenges of data
modernization within the enterprise, evolving the product beyond Hadoop
migration to multiple use cases for large-scale data modernization.

 

 

Partnership Agreement

During Q2FY25, Cirata joined Microsoft's ASMP. Under the program, qualifying
clients can register for migration to ADLS Gen 2 Storage for static migration
using the Cirata LDM product. This represents another potential channel to
market the LDM product and in the medium term, an opportunity to upsell
Cirata's live data capabilities.

 

 

Cash and Overheads

The cash burn in Q2FY25 of $2.2m represents a 47% reduction compared to
Q2FY24.

 

As of 30 June 2025, the unaudited cash position was $6.1m and short-term trade
receivables balance was $1.3m, giving a cash plus short-term receivables
balance of $7.4m.

 

Management continues to focus on improving operating leverage and
sustainability.

Actions will be taken in Q3 to reduce the annualized cash overhead to $12-13m
exiting Q3FY25, representing a reduction of over 70% from a peak of $45m per
annum (Q1FY23).

 

 

Key performance indicators

 

 KPI                               FY22 Q4  FY23 Q1  Q2     Q3     Q4     FY24 Q1  Q2     Q3     Q4     FY25   Q2

                                                                                                        Q1
 Headcount                         177      193      127    109    112    116      107    92     93     71     67
 Overhead                          $11.1m   $9.4m    $8.2m  $7.0m  $5.7m  $6.2m    $5.5m  $5.3m  $3.8m  $4.6m  $4.1m
 Bookings                          $2.2m    $2.1m    $0.7m  $1.7m  $2.7m  $0.7m    $1.7m  $1.7m  $3.0m  $3.0m  $0.8m
 DI Bookings                       $1.2m    $0.2m    $0.4m  $0.5m  $1.5m  $0.3m    $0.6m  $1.4m  $2.3m  $2.4m  $0.7m
 DI Growth                         -43%     -87%     -69%   0%     25%    50%      50%    180%   51%    700%     17%
 DI Contract 1  (#_ftn1) Activity  2        2        4      4      3      4        1      8      6      5      2
 Cash Burn                         $10.3m   $11.0m   $6.3m  $7.9m  $5.5m  $4.9m    $4.2m  $3.2m  $3.2m  $1.4m  $2.2m

 

 

Stephen Kelly, Chief Executive Officer of Cirata, commented:

Sales execution in Q2 FY25 fell short of internal expectations, as several
opportunities shifted into the second half of the year. However, actions taken
earlier in the year to strengthen international sales began yielding results,
as reflected in strong Q1 bookings. We flagged the poor sales execution in US
sales at the Q1FY25 Trading Update and as we failed to see an improvement in
performance in Q2 FY25, we have taken appropriate actions. In addition, with
the appointment of our new Chief Revenue Officer, we have completed a
challenging reorganization of our GTM function. I am confident that Dominic
Arcari's appointment will address the sales execution challenge and put the
sales basics in place as a foundation for predictable growth. We have seen
improvements in lead generation and pipeline build during H1FY25, where
marketing is becoming more effective and efficient. The first half of 2025 has
seen a growth in bookings of 58% YoY, and it was encouraging to see 244%
growth in DI sales YoY in the first half. With today's announcement of the
divestiture of our legacy DevOps assets to BlueOptima, we signal a laser focus
on our growth opportunity in DI, a strengthening of our balance sheet and
further optimization of our cash overheads. We are confident that BlueOptima,
with its expertise and focus on software engineering performance, is the right
organization to take the DevOps products and team forward and wish them well
on this exciting next phase. The outlook statement from March 2025 remains
consistent and we anticipate sales will be back-end loaded for FY25. Cirata's
technology is solving some of the biggest data challenges for customers in
their quest to move petabyte scale dynamic data safely and securely embracing
open-table formats. The demand for Gen AI and analytic consumption, means
Cirata has a role to play at the heart of the data orchestration. We remain on
course to exit FY25 on a growth trajectory."

 

 

This announcement contains inside information under the UK Market Abuse
Regulation. The person responsible for arranging the release of this
announcement on behalf of Cirata plc is Stephen Kelly, Chief Executive
Officer.

 

For further information, please contact:

 Cirata                                  +1 (925) 380 1728
 Stephen Kelly, Chief Executive Officer
 Ricardo Moura, Chief Financial Officer
 Daniel Hayes, Investor Relations

 FTI Consulting                          +44 (0)20 3727 1137
 Matt Dixon / Kwaku Aning / Usama Ali

 Stifel (Nomad and Joint Broker)         +44 (0)20 7710 7600
 Fred Walsh / Brough Ransom / Ben Good

 Panmure Liberum (Joint Broker)          +44 (0)20 3100 2000
 Max Jones / John More

 

About Cirata

Cirata, accelerates data-driven revenue growth by automating data transfer and
integration to modern cloud analytics and AI platforms without downtime or
disruption. With Cirata, data leaders can leverage the power of AI and
analytics across their entire enterprise data estate to freely choose
analytics technologies, avoid vendor, platform, or cloud lock-in while making
AI and analytics faster, cheaper, and more flexible. Cirata's portfolio of
products and technology solutions make strategic adoption of modern data
analytics efficient and automated.

 

For more information about Cirata, visit www.cirata.com
(http://www.cirata.com)

 

 

 1  (#_ftnref1) Data Integration contract signed included renewals, growth and
new

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