• Double-digit revenue growth driven by increased ARPU and tradie connections
• Positive free cash flow generation and strong cash position with no debt
• Confident in achieving FY25 revenue target of $83-$84 million and EBITDA margin expansion

The hipages Group reported a strong performance in the first half of the 2024/2025 financial year (H1 FY25). Revenue from ordinary activities grew by 10% to $40.596 million, driven by a 14% increase in Monthly Recurring Revenue (MRR) to $6.84 million. The Group's efficient operating model and disciplined approach to investing for growth and capability delivered a second consecutive half year of positive free cash flow, which increased to $1.215 million. Subscription tradie numbers were 34,920, with 1% growth in Australia offsetting a decline in New Zealand as the business transitioned to a full subscription model. Average Revenue Per User (ARPU) grew by 9% to $2,267, reflecting new subscription pricing packages and ascensions. EBITDA before significant items was up 4% to $8.683 million, with a margin of 21%. The Group reported a statutory net profit of $73,300. Looking ahead, the Group has updated its FY25 revenue target to $83-$84 million, with confidence in achieving EBITDA margin expansion of 1-2 percentage points to 23%-24% and free cash flow of $5-$6 million. The Group continues to progress its strategic evolution, including the migration of over 32,000 tradie customers to a single platform, which is expected to increase tradie retention and engagement.

The Group has updated its FY25 revenue target to $83-$84 million, with confidence in achieving EBITDA margin expansion of 1-2 percentage points to 23%-24% and free cash flow of $5-$6 million.

The Group is confident in achieving its FY25 financial targets, underpinned by the completion of key technology and subscription migrations, and initiatives in place to drive increased engagement and retention in H2.