GetBusy (GETB) H1 2024 earnings summary

Executive summary

• H1 2024 ARR reached £21.0m, up 5% year-over-year, with 96% recurring revenue and a 14% recurring revenue CAGR since 2017 IPO.

• Growth was softer than previous years due to sales and marketing process changes and customer churn in Virtual Cabinet, but strategic progress supports medium- and long-term value creation.

• Focus remains on cloud-based, subscription software for accountants, with high customer retention and deep integrations.

• The company targets £100–150m cash returns to shareholders by 2030 and continues to prioritize organic growth, capital optimization, and selective acquisitions.

• Adjusted EBITDA improved to £0.4m, and adjusted loss before tax narrowed by 45% to £0.3m.

Financial highlights

• Recurring revenue grew 5% year-over-year to £10.4m; total revenue up 4% to £10.7m.

• Gross margin held strong at 89–89.3%, expected to normalize around 85% as cloud products grow.

• Adjusted EBITDA increased to £0.4m, with a 31% standstill EBITDA margin.

• Net profit for the period was £115k, compared to a loss of £642k in H1 2023.

• LTV:CAC ratio at 3:1; ARPU up 9% to £316; ARPA increased to £2,582.

Outlook and guidance

• Revenue expectations for FY 2024 are reaffirmed at just under £23m, with adjusted EBITDA guidance of £1.2m.

• H2 is expected to be the busy season, with growth driven by SmartVault expansion, new partnerships, and the SmartPath acquisition.

• Double-digit ARR CAGR is targeted for the medium term, with acceleration expected beyond H1's 5% growth.

• Management highlights strong medium-term cash return prospects from SmartVault and long-term growth potential from Workiro.

• Exchange rate pressure from a weaker USD is noted as a headwind.