FINEOS Corporation (ASX:FCL) is a Dublin-based enterprise software company that specialises in providing solutions for the life, accident, and health insurance sectors. The company’s flagship product, the FINEOS Platform, includes AdminSuite, which is designed to streamline administrative tasks such as policy administration, claims processing and billing. This integrated software platform aims to improve operational efficiency for insurers by replacing outdated systems with modern, cloud-based solutions.
In the September 2024 quarter, FINEOS reported cash receipts from customers of €35.5 million, marking a 23% increase compared to the same period last year. However, the company's cash balance decreased to €29.1 million from €34.2 million at the end of June 2024. This decline was attributed to the seasonal nature of prepayments for insurance and software licensing costs, as well as a deferred payment to a major software infrastructure provider.
FINEOS achieved several strategic wins in Q3, including the successful deployment of AdminSuite at Guardian and NYL, and its first implementation with a Direct-to-Employer client. CEO Michael Kelly stated: "We are pleased with the progress we've made, particularly in securing new contracts and deepening engagements with existing clients."
Financially, FINEOS experienced a 10% rise in product manufacturing and operating costs, which reached €8.4 million. Staff costs for the quarter were €14.1 million — up 11% from the previous quarter — partly due to contractor payments. Additionally, administration and corporate expenses saw a sharp increase to €9.6 million, largely driven by annual insurance prepayments.
FINEOS aims to reach positive free cash flow in FY25, with a focus on operational efficiency and self-funding. The company has scheduled an Investor Roadshow in November to engage stakeholders and provide further insights into its strategy.
