I grew up watching and playing cricket, not realizing it would mirror my journey as an executive.
Cricket, like business, is a game of patience and strategy.
While quarterly reports show short-term performance, it's the cumulative efforts that determine success. Just as a cricket team invests in training for future matches, we invest in our products and processes for sustainable growth. Meaning we are not just playing to put runs (points) on the board, but to win the entire match.
Today’s release of our Q2 FY25 results exemplifies the importance of playing for the long-term, looking at the overall picture – holding true during short-term performance fluctuations.
In Q2 FY25, CMG Group revenue increased by 30% YOY to $29.5 million, and our Adjusted EBITDA was $9.9 million. While CMG segment revenue was up only 1%, the importance of energy transition in the market remains clear, with 19% of software revenue this year. Slightly down compared to last year but an expected fluctuation due to the nature of energy transition projects.
Our commitment and momentum towards process innovation and developing new problem-specific solutions for the energy industry has been clear. Recent highlights this quarter:
1️⃣ The acquisition of Sharp Reflections: building the open ecosystem of upstream solutions
2️⃣ Partnership with NVIDIA: targeting faster simulation, using less power
3️⃣ New product launched, Focus CCS: accelerating the preliminary selection and validation process for CO2 storage sites
Acquiring new businesses, and launching new products, is like adding skilled players to our team, making us stronger and more versatile. Together, these efforts ensure that we’re not just playing for the next over, but for the entire match.
Ultimately, it's about delivering unmatched value to our customers. And to do so, it's important to me that I'm constantly meeting them in person and digging into their challenges. After meeting over 50 customers this quarter, it's easy to say that I have never encountered a brand as strong as CMG.
They collectively emphasized that no other company matches CMG in terms of the scientific integrity of our products and the quality of our service. It is these conversations, and our customer’s love for our products, that fuels my optimism for our future. I have more conviction than ever in the value creation potential of our strategy as we continue to execute.
For more information, please read the CEO Letter to Shareholders and Financial Report in the comments.