• Total contract value (TCV) for 1H FY25 expected to decrease 39% vs prior year
• New business TCV expected to increase 87% vs prior year
• Revenue for 1H FY25 expected to decrease 34% vs prior year

Integrated Research Ltd (ASX: IRI) has provided an update on its anticipated sales and financial performance for the first half of the 2025 financial year. The company recently announced its product-led growth strategy, targeting an increased contribution of total contract value (TCV) from new business. However, the company noted that renewals can vary widely year-on-year, and as stated at the AGM, renewals are softer in FY25 versus FY24, weighted towards the second half. Based on unaudited accounts and forecast sales activity for the six months to 31 December 2024, the company expects: TCV for the 1H to be in the range of $23.0m to $27.0m, a decrease of 39% versus the prior corresponding period (PCP); new business TCV to be in the range of $7.5m to $9.5m, an increase of 87% versus PCP; revenue for the 1H to be in the range of $25.0m to $29.0m, a decrease of 34% versus PCP; and EBITDA for the 1H to be in the range of $(0.5m) to $2.0m, a decrease of 93% versus PCP. The company noted that TCV from client contracts due for renewal in the second half of FY25 is significantly stronger than the first half.

The company is confident that investing in new products is the foundation from which it can accelerate growth in new business TCV and move towards a more consistent and sustainable growth trajectory. The company expects to announce developments in the coming months in relation to new product releases.