Symbio commits $7.6M to Asia Pacific expansion plans

Symbio commits $7.6M to Asia Pacific expansion plans

Plans to launch its services in Malaysia at the end of the year.

Rene Sugo (Symbio)

Rene Sugo (Symbio)

Credit: Symbio

Australian Securities Exchange (ASX) listed communications software provider Symbio has revealed it will be investing $7.6 million to accelerate growth across Asia Pacific.

This comes as Symbio made a submission to the Malaysian regulator to become a licensed telecom operator enabling ownership of phone numbers and in-country cloud communications infrastructure, alongside other major networks in the region. 

By the close of this calendar year, Symbio said it expects to launch its services into Malaysia, enabling it interconnect its network with local carriers and partners to help scale its market expansion opportunities. 

South East Asia executive general manager See Kiat Yeo said following the successful launch of its Singapore voice network, its CPaaS [communication platform as-a-service]  business division has achieved its first key customer wins in the new market. 

This comes as Symbio experienced a group consolidated revenue decline of six per cent down to $205 million for FY22 ending 30 June. Group consolidated net profit also fell six per cent to $14.6 million, down from $15.5 million last financial year. 

Despite the drops, recurring revenue was up 12 per cent to $112.3 million in comparison to $100 million last financial year. 

“The 2022 financial year was transformational for Symbio as we divested parts of our non-core business, rebranded from MNF to Symbio, and made solid progress on our APAC expansion plans,” Symbio co-founder and CEO Rene Sugo said.

“During FY22, we simplified our operations, restructuring into three distinct business divisions, each with a clear product offering, experienced leader, target market, and a defined growth plan.

“Our focus continues to be on investing for growth to take advantage of the multi-billion-dollar cloud communication opportunity, which is supported by megatrends including the rapid rise of remote and hybrid work, uptake of Software as a Service (SaaS), and the maturation of voice communications in Asia.

Sugo pointed out domestically, Symbio was gaining market share with a net retention rate of 117 per cent for its top 10 customers and it continues to see strong demand from new clients as cloud communication is further embedded into ways of working and business operations.

“Our launch in Singapore during the year was a milestone for Symbio and although we did not break even by June 2022 as expected, our solid deal pipeline positions us well to achieve 100,000 phone numbers and profitability in FY23,” he said. 

“Embarking on a dual-track approach to entering Malaysia proved to be the right strategy. The targeted acquisitions did not meet our strict valuation criteria, so we are progressing with our organic market entry and expect to be live in the market by the end of the 2022 calendar year. 

“Our focus on cash generation is evident in our strong balance sheet, with $42.6 million in cash, a $60 million undrawn facility and supportive banks. We believe having ample cash on hand is prudent given our expansion and investment plans." 

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