Half Year Results - Media Release
| Stock | Readytech Holdings Ltd (RDY.ASX) |
|---|---|
| Release Time | 26 Feb 2025, 8:12 a.m. |
| Price Sensitive | Yes |
ReadyTech reports 6.6% revenue growth in 1H FY25
- Total revenue up 6.6% to $58.3 million
- Enterprise pipeline of over $37.5 million, including $13.5 million in shortlisted/preferred opportunities
- Underlying EBITDA of $18.2 million, up 4.6% on prior period
ReadyTech Holdings Limited (ASX:RDY), a SaaS provider of cloud-based software to the education, workforce, government and justice sectors, has announced its results for the six months ended 31 December 2024 (1H FY25). The company reported a 6.6% increase in total revenue to $58.3 million, with recurring revenue representing 85.6% of the total. This growth was driven by strong contributions from the Education, Workforce Solutions and Justice segments, as well as new contract wins and upsell momentum. The company's enterprise pipeline now stands at over $37.5 million, including $13.5 million in shortlisted and preferred stage opportunities, providing strong visibility into future growth. Underlying EBITDA grew 4.6% to $18.2 million, representing a margin of 31.2%. The company's cash EBITDA margin also improved to 14.7%. While the Government segment was adversely impacted by product delays, ReadyTech's focus on targeting high-value enterprise opportunities has supported sustained segment EBITDA margins and ongoing subscription revenue growth. The company is well-positioned to capitalize on the accelerating demand for cloud-based solutions across its key verticals, with a growing base of enterprise customers and a strong pipeline of opportunities. ReadyTech is targeting revenue of $160-$170 million by FY27, underpinned by a return to mid-teens growth.
ReadyTech expects overall Group revenue to increase at high single-digits in FY25, with underlying EBITDA margins in the range of 33%-34% (excluding LTIP) and an underlying cash EBITDA margin in the range of 17.5-18.5%.
ReadyTech is well-positioned to capitalize on the accelerating demand for cloud-based solutions across its key verticals, with a growing base of enterprise customers and a strong pipeline of opportunities. The company is targeting revenue of $160-$170 million by FY27, underpinned by a return to mid-teens growth.