Craneware (CRW) H2 2024 earnings summary

Executive summary

• Achieved strong strategic and financial progress, with results above expectations for FY24, driven by investments in the Trisus platform and platform partnership programme.

• US healthcare providers' renewed focus on value-based care supported robust sales and high customer retention rates, exceeding 90%.

• Formed a strategic alliance with Microsoft to accelerate innovation and expand market reach via the Azure Marketplace.

Financial highlights

• Revenue increased 9% year-over-year to $189.3m (FY23: $174.0m).

• Adjusted EBITDA rose 6% to $58.3m, maintaining a margin above 30%.

• Statutory profit before tax up 20% to $15.7m; adjusted basic EPS up 9% to 94.8 cents.

• Annual Recurring Revenue (ARR) grew to $172.0m, with Net Revenue Retention at 98%.

• Operating cash conversion at 90% of adjusted EBITDA; cash reserves at $34.6m, total bank debt reduced to $35.4m.

• Proposed final dividend of 16.0p per share, total dividend for the year up 2% to 29.0p.

• Completed £5m ($6.3m) share buyback programme.

Outlook and guidance

• Board confident in continued growth momentum for FY25, targeting a sustainable return to double-digit growth rates.

• Microsoft alliance expected to accelerate innovation and expand addressable market.

• Strong balance sheet and high recurring revenue support ongoing investment for growth.