Australian collaboration software provider IXUP has shaved off more than 40 per cent of its losses in its financial results for 2020.
For the year ending 30 June, IXUP has posted a net loss of $3.8 million, a reduction of 42.7 per cent from its FY19 net loss of $6.6 million.
Its revenue, however, weathered a drop of 44.2 per cent, to $88,500, from the previous financial year’s $158,000.
Regardless, founder and executive director Dean Joscelyne said the year showed the provider made strong progress with new enterprise clients.
“IXUP has a unique platform and is well positioned for growth,” he said in a statement to the Australian Securities Exchange (ASX).
“Demand for secure data analytics continues to increase as awareness of the cost of privacy and data breaches grows. With market conditions remaining uncertain, we continue to focus on strong cash management and conversion of our sales pipeline.”
The results however were impacted by COVID-19, with the provider taking a number of steps during the year to reduce cash outflows and extend its cash operating runway.
These steps include reducing staff hours and remuneration, focusing on retaining core sales and technical support functions and successfully applying for the Federal Government’s JobKeeper subsidy.
Citing the economic uncertainty created by the COVID-19 pandemic in part, IXUP completed a capital raising of $1.5 million as a result.
This is in addition to the two capital raising offers of $3.2 million in November 2019 and $2.2 million in June 2020, with the former raising funds for a commercial roll out of IXUP’s encrypted data collaboration platform, sales and marketing in the US and Australia, as well as general working capital requirements.
IXUP also cut down costs relating to essential services and infrastructure and temporarily froze all travel, entertainment and external marketing expenditure.
The year also saw the provider expanding its relationship with Deloitte Australia and signing on a reseller agreement with analytics platform group Wejugo.
Additionally, its then-CEO Peter Leihn announced his resignation in May and left the role on 31 July, with Joscelyne taking over the position in the interim.
Looking to the financial year ahead, IXUP’s focus is on preserving cash and long-term shareholder value while maintaining core focus on service of current and new customers, as well as the conversion of its sales pipeline.