DUG Technology (DUG) H2 2024 earnings summary

Executive summary

• Achieved record revenue of AUD 65.5 million (US$65.5 million) in FY24, up 29% year-over-year, driven by strong services growth and significant contract wins, especially in the Middle East.

• Underlying EBITDA rose 54% to AUD 23.2 million (US$23.2 million), with margin improving to 34% after adjusting for one-off third-party compute costs.

• Expanded global footprint with a new Abu Dhabi office, now employing 16 geophysicists, and continued growth in Malaysia, India, Brazil, and exclusive licensing for DUG Cool technology.

• Net profit after tax was US$3.3 million, down from US$4.9 million in FY23, reflecting higher depreciation and investment in new compute assets.

• Launched new technologies, including Elastic MPFWI, and the DUG Nomad business unit, with strong early client interest and positive industry feedback.

Financial highlights

• Services revenue reached a record AUD 54.7 million (US$54.7 million), up 36% year-over-year, with Houston office contributing US$30.3 million (up 120%).

• Software revenue grew 11% year-over-year to AUD 11 million (US$7.4 million), underpinned by recurring contracts with major oil & gas clients.

• HPC as a service underperformed, with revenue of US$3.4 million, but secured a new AUD 500,000 contract and established a dedicated business unit.

• Net debt stands at AUD 14.5 million (US$14.5 million), with strong operating cash flow of AUD 12.1 million (US$12.1 million); US$31.3 million invested in new compute and storage.

• Property, plant, and equipment increased by AUD 26 million, reflecting new compute investments.

Outlook and guidance

• Anticipates continued strong organic growth into FY25, with a robust order book of AUD 36.5 million (US$36.5 million) and a record pipeline, especially in the Middle East.

• Expects increased activity and contract awards after the northern hemisphere holiday period.

• MP-FWI Imaging adoption accelerating, now 33% of FY24 revenue; Elastic MP-FWI Imaging added to offerings.

• DUG Nomad business unit launched to commercialise modular HPC solutions.

• No formal earnings guidance issued for FY25.