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Third quarter results for the 2022 financial year. My name is Wayne Arthur, CEO. And with me today is John Rankin, our COO. Before we dive into the financial results performance, I wanted to provide an upfront summary of the current operating environment and our outlook for the remainder of the year and into FY '23.
So firstly, the business is benefiting from positive macro tailwinds. We're seeing increasing global focus on crowd analytics and occupancy management and growing demand for our industry-leading technology and data solutions. And The operating environment is improving with travel levels returning to pre-COVID levels, which is driving demand from our airports, stadiums and transit verticals. In particular, the U.S. and EMEA markets have really kicked into gear and are now growing ahead of our APAC region.
We've also seen the amount of inbound inquiries for RFPs improve, particularly over the last 3 months since the end of the last quarter. Our financial performance for the quarter was solid with ARR up 30% over the previous calendar period, and we continue to have a strong outlook with over $32 million of revenue in our advanced stage deal pipeline.
Whilst FY '22 has been a year where we have made some investments, we expect to see our cash outflows normalize during Q4, which sets the company up to deliver operating leverage as we discussed in FY '23. And finally, we would like to reconfirm that our second half revenues will exceed the first half and we expect to achieve cash flow breakeven in FY '23.
So with that, we'll move to Slide #3. So just as a recap of the product and the technology, we have developed a data intelligence platform for physical venues. We collect, analyze and visualize insights from physical venues that helps drive improved operational performance, leading to cost and revenue efficiencies for the operators of these environments and to improvements in the experience for the customers. We work with over 200 different data sets and our platform processes over 11 billion data points every single day.
So the kinds of data center that we typically work with include data gathered from cameras, people counters, LiDAR sensors, WiFi networks, CRM platforms, mobile data and device applications, social media platforms, IoT sensors and point-of-sale systems, to name a few. What we do is we gather all this data together, we aggregate it, and we stitch it together to form actionable insights on physical behavior within those venues.
In today's world, as venues have shifted their focus to facilitate structural and operational changes as well as customer experience management. A great deal of our services are being used to help venues manage occupancy levels, monitor crowd density, optimize staffing levels and improve customer safety and security.
So we move to Slide number 4. We've highlighted a couple of the key use cases across 5 of our industry -- key industry verticals. So these use cases are the reason why Skyfii is a critical component of the technology and data strategy for these kinds of customers. So for example, in the commercial property industry, venue operators use Skyfii to understand and manage occupancy levels across floors, buildings and tenancies. They use the data insights to understand space utilization to optimize the layout, the design and the tenant mix in the vendor's venues.
Through our partnership with BrainBox AI, who do HVAC usage monitoring, we're also able to help these live venues predict and optimize their HVAC usage to drive better cost efficiencies across their portfolios. Retail properties or shopping centers use Skyfii to understand audience by age, gender, behavior and trade area. And they use these insights to better engage with and service these customers both in and out of their venues.
Transport hubs and airports use Skyfii for Q management, occupancy monitoring, for wait times and to optimize passenger throughput from curb to gate lounge to drive more traffic and revenue within the restaurant areas and the retail tenancies on the other side of the check-in gates. The stadiums and event centers, the use cases center more around fan engagement, event attribution, advertising sponsorship and monetization and to drive more ROI through the concession areas.
And finally, in government and cultural institutions such as museums and galleries, the key driver for engaging with Skyfii is to manage occupancy levels, understand what drives engagement and forward event attribution so that they can continue to deliver exhibitions that drive footfall and maximize engagement.
Moving to Slide #6, where I will hand over to John to present the key financial and operating highlights delivered during the quarter, and he'll also provide some commentary of the specific areas of investments that we have made to date in FY '22.
Thanks, Wayne. So moving to Slide 6, Q3 FY '22 results. So first, Skyfii is a rapidly growing business with a strong track record of delivering quarter-on-quarter revenue growth, which is a reflection of the growing adoption of our technology and solutions.
In the March quarter, we delivered total operating revenues of $5.7 million, up 59% on the previous corresponding period, marginally down on Q2, but in line with our expectations as Q3 is a seasonally quieter quarter. Recurring revenues of $3.8 million, up 30% on previous corresponding period and our pro forma annual recurring revenue exited Q3 FY '22 at $15.4 million. Quarterly cash receipts from customers of $6.2 million, up 54% on the previous corresponding period, and this was inclusive of the R&D tax rebate. Net cash used in operating activities of $0.4 million was not in line with expectations. Our cash receipts from customers was lower than expected, impacted by delays in capital works, projects and some delays in collecting key renewal -- key customer renewals. More on this, in more detail in the coming slides.
At the end of March, we had a cash at bank of $5 million with access to $2 million loan facility, which remains undrawn. Importantly, our churn rate remains low at 4%, which reflects the strong client engagement and adoption of our technology.
Moving to Slide 7, our annual performance. You will note that the company has introduced a number of key metrics into our quarterly reporting that we will continue to support on -- in the coming quarters. As you can see, we have delivered meaningful growth across all key SaaS metrics over the last 3 years.
The company has a history of delivering profitable revenue growth. We have a track record of positive operating EBITDA performance. Our churn whilst increasing marginally, remains low and benchmarked against our industry peers. And finally, Skyfii has a scalable business model with global market opportunity.
I'd like to call out one key metric, which we have included in our reporting framework, which is true gross margin. This is not product gross margin. Product gross margin, when blended, remains around 75% across the business and as high as 90% on our subscription-based revenues. True gross margin presented today is inclusive of cost of sales, sales, account management, project and service delivery costs.
True gross margin is down in FY '22, and we put this down to 3 main contributing factors: Number one, FY '22 has been the year we have invested for growth with a particular focus on headcount in North America and EMEA; number two, revenue mix in FY '22 has been more weighted towards capital works projects revenues, which has generated a slightly lower gross margin. The increase in capital works projects includes the grandfathering of sales pipeline from the acquisition of CrowdVision and capital works projects now being realized following delays due to COVID-19. And finally, number three, we have experienced margin pressure with the global impact of inflation, in employment costs, equipment and hardware costs included in our capital works revenues.
As we look to FY '23, we expect our cost base and revenue mix to normalize, which will result in our true gross margin returning to its desirable averages. We hope the metrics presented today provide our investors with greater insight into the economics of our business model, and we look forward to expanding on these metrics in the coming quarters.
If we move to Slide 8, investing for growth. The Board and management team of Skyfii -- to capture the growth we saw in the global venue analytic space coming out of COVID. Venues today are increasingly using data to make informed decisions on a range of operational and financial measures. We needed people, particularly in our sales and delivery team to ensure we were capturing this growth demand for venue analytics.
People have been a large part of our investment. Presented on the screen today is a breakdown of the company's headcount allocation by region and by function today and where we were 12 months ago. Our future head growth assumptions consider more targeted hiring on the key skill sets that we require and on strategies to maximize our margins like outsourced models to combat salary inflation and gaps in talent acquisition. Our goal to deliver operating leverage in FY '23 remains our focus as we move towards sustainable positive cash flow in FY '23.
Moving to Slide 9. So presented today is a more in-depth analysis on our cash flow. The March quarter saw Skyfii delivering $0.4 million of cash outflow from operations. Our cash proceeds from customers in the quarter was below our expectation.
And cash outflows was primarily driven by a further $210,000 payment for the settlement of the CrowdVision acquisition, which we have detailed in depth in our quarterly report; project delivery time frames; timing of receipts predominantly relating to capital works projects were delayed and shifted into the following quarter; and timing of payments of the key customer renewals; and also investment for growth initiatives, as mentioned earlier.
So today, with $5 million cash at bank, access to a further $2 million loan facility, which is currently undrawn and a return to positive cash flow of future investment initiatives will be focused on revenue generation.
Moving to Slide 10, contract wins. So we continue to grow our customer base around the globe. During the quarter, we added $2.8 million of TCV into our business. And as we stated earlier, we have generated over $10 million of total contract values contracted over the course of FY '22. Much of this revenue will positively impact recurring revenues from FY '23 and beyond.
During the quarter, we saw strong contract conversion across core verticals of travel, retail, casino, government and cultural institutions. International markets accounted for over 70% of our quarterly growth. And whilst we cannot name many of our customers due to commercial sensitivity, we are engaging with a wide range of blue chip customers across the globe.
Many of these engagements with global customers are leading to further growth opportunities in their global portfolio. Delivering mainly for value in venue operations in our growing client base is helping drive the referral business whilst also expanding our exposure to their organizations and their portfolio of assets or venues.
So before I hand you back to Wayne, I wanted to restate that the company is well placed to continue to deliver growth as venues and our customers look towards Skyfii to harness the power of AI, machine learning and venue analytics to deliver meaningful data to help them maintain safe and compliant operations, aid in the reduction of venue management overheads and enhance the experience of hundreds of millions of customers who visit our portfolio of venues every year. Thank you.
Thanks very much, John. Just moving to Slide #12, and we'll take you through a couple of slides of the outlook. So first and foremost, our 12-month rolling pipeline revenues remained very strong at approximately $32 million of total pipeline. We currently have approximately $5 million sitting in the final stages of contracting and then a larger pool of just over $8 million worth of deals in the client evaluation stage that are one stage back from being contracted.
It's also worth noting that approximately 61% of the opportunities in our 12-month pipeline, our deals in our international markets. So it's pleasing to see the offshore investments starting to pay off. We've also seen a significant increase in demand from travel hubs and entertainment venues as those have now fully returned to pre-COVID levels.
Approximately 24% of the current pipeline can still impact Q4 of FY '22, and we are running hard to capitalize on this momentum to close out the financial year. And finally, over 20% of the pipeline has been generated in the past 3 months, which is a positive reflection of the investment into our sales team and our decision to invest for growth.
Moving to Slide 13. As I stated at the outset of today's presentation, FY '22 has been a year of investment into our operating model and our resources base as John has outlined. And this is to ensure that we can scale our operations and growth over the next 3 years, beginning this year and specifically to deliver operating leverage in FY '23 and beyond. As we've stated previously, our investment strategy has been intentional and calculated and intrinsically linked to our operating performance.
To reconfirm some of the points that John made earlier, we expect our operating cash outflows to further normalize in Q4 and for our second half revenues to exceed the record levels that we achieved in the first half. It's going to be a strong Q4. The team's focus will continue to be on business development with airports, retail, entertainment venues. And we've also begun to see renewed demand from the QSR, quick service restaurant vertical.
We're pleased with the accelerating growth in our international markets, which have, by design and as a result of focused investment, began to outpace our APAC market. And finally, we expect Q4 to be our best quarter year. So I look forward to presenting those results to you all in July.
Looking ahead to FY '23, we expect to begin to show strong operating leverage as our costs will grow slower than our revenues. And our goal is to deliver cash flow breakeven in the FY '23 period, with the company then expected to deliver cash flow profit in the following years.
So with that, I thank you for your time today, for your ongoing support, and I'll now invite any questions.
[Operator Instructions] Wayne, first question is around the investment in the headcount and particularly in sales. Can you give an update in terms of the lag between bringing the sales staff on, when they will start to generate some revenue? And if you can, a little bit of disclosure about some of the metrics that those sales staff that are going to be measured on in terms of amount of revenue you're expecting them to bring on board.
Sure, sure. Yes. So listen, the majority of the investment around the sales function has been in enterprise sales or frontline sales. More recently, in the last quarter, we started to fill out some of the post-sales functions, so account management, customer success, which are all kind of budgeted roles as well.
Typically, in an enterprise sales role, you need a 3- to 4-month kind of ramp-up period really before you're effective. So that's generally the ramp period for a typical sales guy in this function, or sales girl. Every single one of them is, I guess, is monitored against a target or a series of targets. And I would say that in the order of kind of $1 million to $2 million of the TCV would be kind of an average target or a target range, should I say. And they're all paid according to the TCV numbers that they write.
And then on -- next question is on the -- you mentioned, strong quarter. Is that in context of the seasonality that you generally see in Q3, which you mentioned has been seasonally weak? Or is that strong quarter more around some of the TCV pipeline conversions that occurred in that period?
Look, there's definitely some seasonality here. We generally see the Q2, Q3 [indiscernible] specifically relatively flat, and that's just because of the seasonality around some of the markets, particularly in Australia over the Christmas and January period. But what has been interesting, the reason why we started to see a bit of shift offshore is the investment we've made into these international markets, as we talked about in particular the last 9 to 12 months is really starting to pay off. We're getting lot of traction in the U.S. market and in the EMEA region as well.
I think the stat this quarter was about 70% of the growth came out of the international markets. That's good news. It isn't to say that APAC is slowing down, but it is -- it has been a focused investment strategy for us to start to see the international markets outpacing APAC and eventually carrying the lion's shares of the revenues, and that momentum has now started. So that's going to help with the seasonality moving forward, we expect.
Great. Just a follow-up question from that. It asks, ARR growth was subdued through the period compared to what has been delivered in the previous quarters. Is that just a function of those timing and seasonality issues that you talked about?
It was a bit of that, but actually, there were some other areas, and John mentioned those in his section. The supply chain challenges have obviously been felt a little bit over the last 4 or 5 months, particularly. Just some equipment for us has been -- has just taken longer to receive. Costs have gone up a little bit in the supply chain. It's affected our ability to deliver some of the capital works projects in particular. So we saw sort of a lower CapEx quarter as well for that reason. But a lot of those receipts, though, pushed into Q4. So it isn't that we've lost the business, it's just taking a little bit longer to get those projects, deploying them and to build for them.
The only other factor though there has been an impact to us, has been in general, has just been the cost base across the business. And that's been something that we felt gradually over the last 9 months, just as the employee costs around the world have gone up with the rising inflation. So we've definitely been impacted by that.
John made a comment that we are looking and we've started to sort of offshore some of the functions that are offshorable in the business to start to help us with scaling those functions in the future. So that's helping us offset some of the impacts of inflation in the last sort of 9 months.
Thanks. You mentioned inflation is obviously a buzzword in the market at the moment. There's a fair few questions that have popped in around inflation. So I'll just move to those now. How high is the fixed cost base of the business essentially? And how will inflation impact what occurs?
Yes. So I think our fixed costs are around about the $20 million mark, I think, annually. Somewhere around there. OpEx in general, should I say, that gets counted and fixed. And so the -- we are -- we put a plan in place, which we will talk about at the end of the financial year as we set up some objectives for next financial year. But suffice to say that the business -- there is no scenario where the business does not start to manage its growth on its own capital moving forward. We will start to breakeven from a cash flow perspective in FY '23, and we will continue to build out that cash up. We are not going to put this is in a position where it requires capital to continue to scale to grow.
And so to go back to the inflation questions, hard to know where that's going to go in the future. But we are sufficiently hedged in terms of future roles that we bring into the business by way of our offshore -- offshoring strategy, where we've set up us engineering and support functions in some offshore markets that is giving us much, much better efficiency on the head count. So we feel that's a pretty good hedge for us moving forward.
Yes. Inflation with customers, 2 things for you. The ability to pass on inflation in terms of higher charges to your customers; and then the second component of that is average contract win. So you've obviously locked into the contracts. I think it's roughly about 3 years. So are there any mechanisms in the contract that you can pass through some of the inflation to customers? Or do you need to wait until the end of that renewal period until you can pass them through?
Yes. It's more the -- kind of the latter. We are -- where we can and where we have contracts that are kind of monthly recurring or annual recurring, we're absolutely building in a CPI increase. So that is happening. And so we will keep pace -- we will keep pace in terms of pricing with inflation.
With the longer-term contracts, the sort of 5-year deals, it's a little bit difficult. We don't have as many of those anymore. And actually, the annualized recurring revenue contracts, the annual ones are kind of preferred at this stage for that reason, to make sure that we can keep pace with inflation.
Next question is just around the margin. You mentioned that the true gross margin had fallen during the quarter. Can you just talk through the rationale behind that? I think, John, you mentioned the fact that a lot of that in investment in terms of new headcount. But was there any impact from inflation in terms of the capital goods and so forth that was coming through in the quarter, [indiscernible] in reverse or stay through coming quarters?
Yes...
Yes -- you can jump in, John.
No, I was just going to say, look, I think we've always got to watch and brief on the impact of inflation. So I think some of the strategies that we've contemplated for FY '23 to address that are already being introduced. But also just repricing exercises as we push deals through the sales pipeline is pretty critical.
The business as a whole though, I think if you kind of reflect on FY '22, it definitely has been more of a CapEx-heavy year. And that's about, I guess, the CrowdVision acquisition where we inherited a sales pipeline and the airline industry and airport industry started to breathe life, which is now in full flight, which is good. And then equally, we just -- the impact of COVID, continuity of venue performance all that stuff, we paid a little bit of capital in our pipeline.
So I think moving forward, what we're going to see is a re-weighting of recurring versus nonrecurring. So clearly, that is a part of delivering that operating leverage, which Wayne talked about as well in terms of making sure that the ARR, which is generating moves more in line with our cost base. And then the nonrecurring component then becomes the margin that we generate that sort of sits on top of that.
Today, they're sort of the goals for us. But I think increasingly, we're just continuing to reprice. And as Wayne said, through the renewal process, like while we average 3 years across the board, we do have a mix of customers, some of them are rolling 12-month contracts. So it does give us an ability to be able to adjust accordingly through that renewal process.
Thanks. We've talked about inflation. What are some of the other main business risks that you see within the company at present?
The main what, sorry?
Main business risks was the question.
You want to jump on that, Wayne? Or...
Yes, I'll jump on that one. So I think, look, the thing that we're just monitoring really that -- and I think it goes to the -- counter to what -- the point John was saying, initially, the supply chain is obviously a challenge for us at the moment or has been a challenge, largely because as John mentioned, the last 9 months, particularly has been more heavily weighted towards CapEx and capital works projects than usual.
The good news, though, is that we are, as John mentioned, rebalancing our revenue mix for next year and moving forward. We're building in some different pricing methodology around ARR that we'll see a shift in more ARR than CapEx moving forward to get us back to that margin that John spoke about, but also to reduce the reliance on things like the supply chain. So that is a -- as I said, it's not a major risk at all. It's impacting a lot of companies that distribute hardware, but it's another risk that we're just aware of and conscious of and we're looking to build ourselves away from.
Then the employee, I guess, the sort of great resignation, if you like or the shift in terms of the employee market over the last 9 months has been an issue for us. But we think it's -- we think we've got to the bottom of that now. We've sort of rebased where we needed to across the business. And as I mentioned, the focus is offshore now for a lot of those functions that will help us scale and give us a hedge. So would be the 3 areas.
Thanks. Question on client wins during the quarter. You mentioned that there were about $3.8 million of TCV that was won during the third quarter. The question here, there was no announcements of that through the quarter. Why did that occur? And could you not announce these wins to the market?
Yes. It's a series of sort of smaller deals and builds up to a big number and the sort of frustrating thing in terms of the ASX reporting is that if it's not sort of 5% of revenues in a single deal and needs to be named, we can't do it. So either one of those things generally happens to us, were either not allowed to name the customer because there's sensitivities or the contract value isn't -- on an annualized basis, isn't 5% or more of the revenue. So we end up doing smaller deals for several hundred thousand dollars and then they build up to a reasonable number over the end of the quarter.
So it's frustrating, but those are the rules that we're dealing with at the moment. What we tend to do is we will batch them and announce them in a group, in this quarterly format. Moving forward, though, what we are looking to be doing more of is sending out more kind of media PR releases. So you will see more activity in the media around the deals that we do convert during the quarter because we are conscious that we go sort of 12 weeks between releases, which is -- which could be frustrating.
Just a question on cash flow, the quarter, probably one for you here, John. There was $1.1 million worth of R&D rebate, which came in, which slightly [ flattened ] the numbers. What are the implications for Q4 cash flow? You mentioned there was some lags that had occurred between invoices not yet paid. Just a bit of a view or some comments on that, please.
Yes, sure. Okay. And as we sort of mentioned during the call, the cash proceeds from customers wasn't at the level that we were expecting in the quarter. And so to -- pointing to some of the areas around delivery, we were just challenged in terms of closing those out. And we're closing the projects out, but then payments getting received. So we do see a catch up in Q4. And as sort of Wayne suggested, as we move into '23 we're nearing more towards that operating leverage that we're looking for in FY '23. That should balance out.
Great. Last few questions around the outlook and the pipeline. Just a reminder, any more questions that are out there, please use our Q&A facility. In terms of the outlook, you mentioned FY '23 looks to break even from a cash flow perspective. Is that consistently through '23 -- as you start '23? Or is there a point in time through the course of the year that you'll get to that cash breakeven decision?
It will be a breakthrough. Yes.
Yes. It's a point in time we'll breakthrough, yes, exactly, but with the goal being that we will be -- from that point onwards, the business starts to generate decent cash profit and so into the following years. And it's a strategy that we did outline at the beginning of this year, putting aside the sort of the macro conditions over the last 9 months in the tech sector and so on. We did make a decision to invest this year in order to build the platform for the scalable and profitable growth moving forward.
So we are on target with that. So FY '23 will be the year where you'll see that leverage, but also we will break through from a cash flow perspective and then we'll build from there. So no intention of going back from that point, but it will be a point in time.
Okay. A few follow-up questions that we're going to [ answer ]. Can you give any more clarity in terms of when that point in time will be through the course of the year, first half, second half, if you can talk through it?
Second half, sometime second half is kind of -- sort of guidance at this point.
Yes. And we're sort of quite intensively going through our budget process and our 3-year outlook for the business as well. So some of the initiatives that we've talked about on the call today will help us move us towards that target. And certainly, yes. So we've got a well thought-through plan, and it's pretty consistent, as Wayne said, as what we stated over the start of the year.
On to that $32 million advanced days deal pipeline that you have. The question is, is that pure new growth opportunities? Does it include any cross-sell opportunities? And does it include any renewal opportunities that might be coming up?
So that's the new business. So the pipeline that Wayne talked about in the outlook reflects new business and including the TCV, so the $2.8 million that we called out in terms of that is absolutely new contract wins, not renewals. And as we kind of called out churn rate, whilst it has increased a little bit in the last sort of 12 months, let's call it, it's still pretty low at 4% of overall. So good 96% retention on our existing customer base. So there's a good pathway to renewing customers. But yes, it's definitely the new business.
And the last question we've got here. You gave a breakdown through the quarter in terms of the verticals that drove that TCV conversion. Are they going to be reflective of similar proportion of what's sitting in the pipeline? The question is trying to get around what are the major verticals in the pipeline that's generating the bulk of that $33 million?
Do you want me to jump on this, Wayne?
Yes. Yes, sure. Could you?
Yes. Look, it's -- I mean, it can swing between quarter-on-quarter. But certainly, from our perspective, the CrowdVision business has definitely -- and the recovery, the very fast recovery of the airport sector globally is definitely showing some really positive signs, both on the pipeline that we inherited as well as new business opportunities. So I think we mentioned there's a lot of RFP activity in the market, which is good. We picked up some great technologies through the acquisition of CrowdVision, which we're starting to see, like the LIDAR technology solution, which we're starting to see proliferate into other verticals as well.
So Wayne -- the North American team has had some great success in the casino space, which we've outlined as well. So that's certainly a growing piece. We've got our core verticals of retail, retail property, where we've got a good, solid, broad and deep product line. So we see that continuing to grow.
And then public venues, so stadiums as well as museums and cultural institutions seems to be an area that, really, these types of venues are looking for, data and technologies that can help them manage occupancy, but also as well, manage their assets more efficiently and reduce their overheads. So I think that's been a constant theme across probably all those verticals in the last 12 months.
Yes. Two last questions have just popped up. One on the pipeline from the December quarter versus what you've announced in March. How much of that pipeline roughly was lost in terms of dollar value? And did you get any feedback on deals that you didn't secure or deals that moved out of the pipeline for like Skyfii, was unsuccessful, [ part ] solution, et cetera?
It's probably -- I don't know, Wayne, do you want to jump on that? Or...
Yes, I was going to say -- yes, we had a couple of deals in the airport space, airport vertical, which we lost, which were RFPs. And both of those actually -- they were RFPs that went from a fairly large number down to a really, really small number in the end after multiple rounds of discussion and negotiation. And the scope kind of changed a lot. And it got down to a kind of margin issue where we were comfortable to sort of walk away from it, particularly one of the occasions.
So this is markets though that were -- it was actually out of India. So not really a market that we are present in today and arguably one of those markets that's generally more price conscious than others. So it was a loss, but probably not a deal we wanted to win if that makes sense.
I can't recall the others that we lost in the quarter. There has definitely been a reasonable amount of pipeline shift. So we're just seeing that, it's been a kind of a recurring theme over the course of the year. Stuff has just moved up 3, 4, 5, 6 months, and later it was supposed to happen. Just I think some of these companies are just suffering themselves from the same sort of things that we've spoken about around employee churn and supply chain challenges.
So there hasn't been a lot that's been lost, is the point I'm making. It's been pushed out later into the year, and we expect to see a lot of catch-up in Q4 actually.
Yes. And I think I've just answered that last question, but it was exactly that of, what are you seeing in terms of your customers from the difficulties your experiencing in terms of being able to bring on board people and how that's affecting your business, which, Wayne, I think your answer is just basically pushing back that pipeline effectively, right?
Exactly. That's basically what's happened.
Yes. Wayne, that's the end of the questions. So Wayne, I'll just hand back to you for any closing remarks.
Great. Thank you very much. Thanks for all the questions, everybody, and we appreciate you dialing in. We're excited about closing out the year. Year-on-year, this is going to be a fantastic year for us in terms of revenue growth, recurring revenue growth and then moving into FY '23, again, excited to put out some -- at least some high objectives around cash flow breakeven.
We are conscious around the macro climate. We want to make sure that investors are confident in the ongoing concern of the business, and we will make sure that the business is turning a cash profit next year. But continuing importantly on the scale that we've built this year and the investments we've made to continue to grow revenues at a reasonable level as well.
So we're excited about what's to come in the future. It's been an interesting year as we've spoken about around some of these key challenges. But we feel like we've sufficiently mitigated a lot of these challenges now, and we're excited about the platform that '22 will push us into '23. So thanks for your time, and we'll see you next quarter.