Information Technology
Archtis Limited (AR9)
Archtis Limited is a global cybersecurity software company that develops solutions for secure information sharing and collaboration. Its key products, Kojensi and NC Protect, are used by government, defence, and enterprise clients, primarily in Australia and the United States, to protect sensitive and classified information.
Market Cap
A$48M
Shares on Issue
N/A
Price Chart
AI Analysis
Archtis is in a high-growth phase, focusing on expanding its recurring revenue base through contracts with government and defence agencies. Recent performance has been characterized by significant revenue growth, driven by new contract wins and renewals, particularly within the Australian Department of Defence and US intelligence communities. However, as a small-cap tech company with a A$48M market cap, it continues to invest heavily in sales and development, resulting in a net cash outflow as it scales its operations.
The company's growth outlook is tied to the increasing global need for secure collaboration tools and data-centric security. Key catalysts include securing larger, multi-year contracts with international defence agencies and successfully expanding its footprint into the broader enterprise market. Archtis's strategic direction involves leveraging its existing security accreditations to win new clients and potentially pursuing further strategic acquisitions to enhance its technology stack.
Bull Case
- • Increasing geopolitical tensions and cyber threats are driving significant government spending on security solutions, a direct tailwind for AR9.
- • The company holds high-level security accreditations, creating a strong competitive moat and high barriers to entry for competitors in the defence and intelligence sectors.
- • A shift towards a recurring revenue model through Software-as-a-Service (SaaS) contracts provides a pathway to predictable, long-term cash flow.
Bear Case
- • As a small-cap, the company is reliant on consistent contract wins, and delays in government procurement cycles can lead to lumpy revenue and cash flow issues.
- • The company faces intense competition from larger, more established global cybersecurity vendors with greater financial resources and brand recognition.
- • Continued operational losses and cash burn may necessitate future capital raisings, which could dilute the value for existing shareholders.
Recent Announcements
Investor Presentation
Quarterly Activities/Appendix 4C Cash Flow Report
🚨 Price SensitiveThe ASX announcement for company ticker AR9, a Commitments Test Entity (CTE), details its quarterly cash flow activities and financial position in Appendix 4C of the Quarterly Activities/Appendix section. Investors should review this report to assess
Application for quotation of securities - AR9
Investor Webinar
AR9 Completes US Department of Defense Development Project
FAQs
What does AR9 do?
Archtis (AR9) provides advanced cybersecurity software, primarily Kojensi and NC Protect, that enables secure collaboration and sharing of classified and sensitive information for government, defence, and enterprise organisations.
Is AR9 a good investment?
AR9 is a speculative, high-risk/high-reward investment. The potential upside is driven by its unique technology, strong position in the growing defence security market, and potential for large contract wins. However, risks include its current unprofitability, reliance on government spending, and competition from larger players.
What drives AR9's share price?
The share price is primarily driven by announcements of new and renewed contracts, quarterly revenue and cash flow performance, achieving profitability milestones, and overall market sentiment towards the high-growth cybersecurity sector.
Key Metrics
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