Objective (OCL) H2 2024 earnings summary

Executive summary

• Revenue reached AUD 118 million, up 6% year-over-year, with a full transition to 100% subscription software and 81% recurring revenue.

• Annual recurring revenue (ARR) grew 11% year-over-year to AUD 105 million, breaking the AUD 100 million mark for the first time.

• EBITDA rose 66% to AUD 44 million, and net profit after tax increased 49% to AUD 31 million.

• SaaS annualised recurring revenue grew 15% year-over-year, reflecting strong demand for cloud solutions.

• R&D investment maintained at 30% of revenue, supporting innovation and product development, with 43% of all-time R&D spend in the last five years.

Financial highlights

• Adjusted EBITDA rose 66% year-over-year to AUD 44 million; operating cash flow was AUD 56 million, 127% of adjusted EBITDA.

• Cash balance increased 32% to AUD 96 million compared to FY2023.

• Dividend increased 26% to AUD 0.17 per share, with eight cents fully franked.

• SaaS revenue CAGR of 31% over five years; non-recurring revenue CAGR of 2%.

• SaaS ARR growth outpaces other revenue streams, driving margin expansion.

Outlook and guidance

• Target ARR growth remains at 15%, with confidence in achieving this due to a strong pipeline and deferred deals expected to close.

• Margin improvement is expected, but some margin will be reinvested to drive organic growth.

• Continued investment in people, innovation, and operational scalability to support organic and M&A-driven expansion.

• Build product expected to win customers outside New Zealand in FY2025.