Cirata Q3 FY25 Update: Record $3.1m Contract and Strategic Shift to Data Integration

• Annualised cost base entering Q4FY25: $12-13m, around a 70% reduction from peak levels.
• Q3FY25 cost base for continuing operations: $3.9m, with an exit run-rate of $3.4m per quarter.
• Q3FY25 cash burn: $0.8m, a 76% reduction year-on-year. This figure includes both proceeds and one-off costs linked to the DevOps divestment.
• Unaudited cash at 30 September 2025: $5.4m; short-term trade receivables: $0.3m; total cash plus receivables: $5.7m.

Management reiterates that, given the cost base reduction and DI growth, no further working capital is expected to be required in FY25. If the Q4 momentum continues, operating leverage (growing gross profit faster than operating costs) should start to show through.

DevOps divestment: simplifying to the core

Cirata completed the sale of its DevOps assets on 11 August 2025 to BlueOptima. The Company received $2.5m at closing, with up to $1.0m of final consideration due in December 2025 (not yet confirmed). The move tightens strategic focus on DI, which is presented as the core growth driver.

Cirata Symphony: stepping beyond migration into data orchestration

On 9 September 2025, Cirata launched “Cirata Symphony” – a data orchestration platform designed to coordinate and automate data across storage, compute and transfer layers. It integrates with Amazon S3, Hadoop, Spark, Databricks, Snowflake, network file systems, transfer tools like LDM and distcp, and AI models such as Claude, ChatGPT and Google Gemini.

Why this matters: it moves Cirata beyond pure migration into broader data operations – the “control plane” for delivering data to where it’s needed without downtime. Management points to a larger addressable market for orchestration tools, while noting definitions vary. Execution-wise, the platform has been developed under CTO Paul Scott-Murphy with input from key customers, which should help ensure real-world fit.

KPI highlights at a glance

Metric	Q3FY25	Comparison/Context
DI bookings (quarter)	$0.3m	Down 79% vs Q3FY24 ($1.4m); timing effect cited
DI bookings (YTD to Q3)	$3.4m	Up 42% vs YTD Q3FY24 ($2.4m)
Largest direct contract	$3.1m over 3 years	Signed in early October with a leading US insurer
Contracts signed (quarter)	4	Q3FY24: 8
Cost base (continuing ops)	$3.9m (Q3)	Exit run-rate $3.4m; annualised entering Q4: $12-13m
Cash burn	$0.8m	Down 76% YoY
Cash and receivables	$5.7m	$5.4m cash + $0.3m receivables at 30 Sept 2025
Headcount	57	Continuing down from 67 in Q2FY25
DevOps divestment proceeds	$2.5m	Up to $1.0m additional consideration due Dec 2025

My take: the good, the bad, and what to watch

Positives

• Record $3.1m LDM deal and a 3-year term – strong product validation and better revenue visibility.
• Cost base trimmed to $12-13m annualised with a $3.4m quarterly run-rate – sets up operating leverage as bookings scale.
• Cash burn cut to $0.8m in Q3 – evidence of discipline as the business refocuses on DI.
• Symphony launch widens Cirata’s scope from migration to orchestration – a larger problem space with stickier customer relationships.

Negatives

• Quarterly bookings were weak on the headline, with four contracts vs eight last year – timing is the explanation, but it does increase reliance on Q4.
• Cash plus receivables of $5.7m is not a large buffer – execution on Q4 bookings and collections matters.
• No disclosure on margins or revenue phasing for the $3.1m deal – investors will want clarity on near-term cash impact.

What to watch next

• Q4 bookings cadence – does the early momentum translate into a stronger close to FY25?
• Symphony traction – early customer use cases, attach rates with LDM, and incremental bookings attributable to orchestration.
• Cash discipline – sustained low burn at the $3.4m quarterly cost base and timing of the up to $1.0m DevOps consideration in December 2025.
• Sales execution – with a new Chief Revenue Officer from July, watch for conversion rates, deal sizes, and term lengths continuing to improve.

Outlook: back-end weighted again, with improving operating leverage

Management keeps its March 2025 outlook unchanged: bookings to be back-end weighted, with continuing high growth in DI. The combination of the DevOps divestment, lower overheads and the record DI contract signed early in Q4 supports that stance. Management also reaffirms it expects no further working capital in FY25.

Bottom line: strategy and cost control are now aligned behind DI, LDM just bagged a flagship win, and Symphony opens a bigger lane. Delivery in Q4 is the swing factor. If Cirata converts the pipeline and maintains discipline, the operating leverage they’re aiming for should start to show through in the second half of FY25.