Insights

The Archtis (ASX:AR9) share price slides on quarterly update

Cyber security threats continue to impact businesses, governments and households
The post The Archtis (ASX:AR9) share price slides on quarterly update appeared first on The Motley Fool Australia. –

The Archtis Ltd (ASX: AR9) share price is down today, though rebounding strongly from earlier losses. At time of writing Archtis shares are down 2.94% after earlier posting losses of more than 7%.

Below, we take a look at the ASX cyber security company’s quarterly update for the quarter ending 30 June (Q4).

What quarterly update did Archtis report?

Archtis’ share price remains down at time of writing despite the company reporting a record-breaking quarter.

According to the release, total unaudited revenue for Q4 in the 2021 financial year came in at $1.25 million. That’s an increase of 80% on Q3 revenue. It’s also up 1,289% from Q4 in the 2020 financial year, when revenue came in at $162,000.

Archtis said the leap in revenue was mostly thanks to a 39% increase in annual recurring licensing revenue, as well as consulting services derived from its Australian Department of Defence contract.

The innovative software developer also realised an 86% increase in gross profits quarter-on-quarter, to $1.48 million, up from $797,000 in Q3.

With more money going into sales and marketing, operating expenses for the quarter were $2.3 million. This was up 8.6% from the prior quarter. As at 30 June, the company has a cash balance of $12.7 million, compared to $12.0 million in Q3.

Commenting on the results, Archtis’ CEO Daniel Lai said:

Archtis delivered a strong record-breaking quarter. We set out with a plan to scale the business through the expansion of a global sales distribution network, increased market awareness and technology-leading product innovation. This has provided shareholders with another quarter of record revenue growth, strong customer cash receipts and an increasing recurring licensing business.

The company credited the strong growth to some large new customer wins as well as renewals across government agencies, defence contractors and corporations around the world.

Archtis share price snapshot

The Archtis share price has gained 43% over the past 12 months, compared to a gain of 25% on the All Ordinaries Index (ASX: XAO) over that same time.

Year-to-date the Archtis share price is up 6%.

The post The Archtis (ASX:AR9) share price slides on quarterly update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Archtis right now?

Before you consider Archtis, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Archtis wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

ASX 200 companies take heed: Telstra (ASX:TLS) boss says Australia faces ‘unprecedented’ cyber threat

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!