Key Highlights

  • Knosys develops cloud-based software for enterprise knowledge management and information access.
  • KnowledgeIQ is the company’s core knowledge-management platform.
  • The group also provides intranet, digital-workplace and library-management software.
  • Customer renewals and recurring subscription Revenue remain key operating indicators.

Knosys Limited (ASX:KNO) develops enterprise software designed to help organisations manage, organise and deliver information. Its KnowledgeIQ platform sits at the centre of the business, supported by intranet, digital-workplace and library-management products.

KnowledgeIQ and enterprise information:

KnowledgeIQ is a cloud-based knowledge-management platform designed to help organisations capture, organise and distribute information. The software can be used by employees who need access to approved information, including customer-facing teams that require consistent answers and guidance.

A broader workplace software suite:

Knosys is not solely a knowledge-management vendor. Its product suite also includes intranet and digital-workplace functionality for communication and collaboration, as well as library-management software. This gives the company several routes into organisations that need to manage information and workplace content.

Recurring software revenue:

The SaaS model is important because subscriptions can create Recurring Revenue rather than relying entirely on one-off software sales. Customer retention and contract renewals are therefore important measures of progress. Knosys has previously reported multi-year KnowledgeIQ contract extensions, including agreements with large organisations.

Competitive enterprise market:

Enterprise software is a competitive market, with large vendors offering broad information-management and workplace platforms. For a smaller provider, customer retention, product development and the ability to win new contracts are important to sustaining recurring revenue. Sales cycles can also be lengthy when software is deployed across large organisations.

Risks

Key risks include competition from larger software providers, long enterprise sales cycles, ongoing product-development costs and funding requirements. Investors may watch new customer wins, contract renewals, recurring subscription revenue, adoption of KnowledgeIQ and other products, profitability and cash flow.

What Investors May Watch Next

  • New customer wins and renewals
  • Recurring subscription revenue
  • Product adoption and development
  • Cash flow and profitability