Daily Roundup

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EML Payments Ltd Delivers Strong 1HFY25 Results

EML Payments Ltd has reported impressive growth in its 1HFY25 results, with revenue up 15% to $115.1 million and underlying EBITDA soaring 50% to $33.4 million. The company has also achieved a significant turnaround, moving from a $4.7 million loss in the prior period to a $9.5 million statutory net profit.

The strong performance was driven by a 49% increase in interest revenue to $32.8 million and solid 6% growth in customer revenue to $82.3 million. EML's underlying gross profit improved 17%, and the company maintained tight control on overheads, with net overheads rising just 3%.

Importantly, EML's cash balance increased 17% to $50.6 million, providing the company with ample resources to execute on its strategic priorities. The EML 2.0 transformation program is progressing well, and the commercial team is closing deals and building a healthy pipeline.

EML has reaffirmed its FY25 underlying EBITDA guidance of $54-$60 million, and the new leadership team remains focused on delivering a stronger business for shareholders, customers, and employees.

Prophecy International Reports Record H1 FY25 Results

Prophecy International Holdings Ltd has delivered a strong H1 FY25 performance, with revenue reaching a record $11.6 million, up 1% from the prior period. The company's contracted annualised recurring revenue (ARR) also grew to $25.9 million, driven by continued expansion of its emite and Snare product lines.

Prophecy remains debt-free with a $9.1 million cash balance and expects to achieve positive cash flow in FY25. The company is playing a crucial role as an AI enabler, providing the secure, structured, and scalable data that AI systems depend on.

The emite business has secured several new customer wins, including a significant 6-year, $10.7 million contract with Optus Networks Pty Ltd for Services Australia. Snare has also signed new contracts with enterprise clients, with more than 80% of new sales now on a subscription basis.

Looking ahead, Prophecy remains focused on delivering organic growth through its emite and Snare solutions, with market tailwinds continuing to support the company's business lines.

Botanix Pharmaceuticals Ramps Up for Sofdra Launch

Botanix Pharmaceuticals has reported a $30.9 million net loss for H1 FY24 as it prepares for the launch of its newly approved hyperhidrosis treatment, Sofdra (sofpironium). The company has built out its commercial infrastructure, engaging 27 experienced sales representatives, and has finalized contracts with key US commercial payers representing 167 million lives.

Botanix expects Q1 CY2025 to mark the first commercial revenue quarter for Sofdra, with further ramp-up in Q2. The initial patient experience program has been successfully completed, with all participants utilizing the telehealth platform and receiving their prescriptions and refills.

With the commercial groundwork now in place, Botanix is well-positioned to capitalize on the significant market opportunity for Sofdra. The company plans to provide updates on leading indicators like refill rates, patient satisfaction, and digital marketing performance as the product gains traction.

SiteMinder Delivers Accelerating Growth and Improved Unit Economics

SiteMinder Limited has reported a strong set of H1FY25 results, with total annualised recurring revenue (ARR) increasing 22.0% (on a constant currency, organic basis) to $216.2 million. Subscription properties grew 13.5% year-over-year to 47.2k, and the company achieved positive underlying EBITDA of $5.3 million, a significant improvement from the $1.2 million loss in the prior period.

The company's Smart Platform strategy is driving these positive outcomes, with transaction ARR growth of 37.0% (cc, organic) to $73.8 million. SiteMinder's focus on acquiring larger, higher-value hotel properties has also contributed to the over 50% year-over-year growth in net rooms added.

Unit economics have also improved, with the LTV/CAC ratio increasing from 5.3x in H1FY24 to 6.1x, and underlying gross margin up 118 basis points from H2FY24 to 66.9%.

Looking ahead, SiteMinder is targeting 30% organic annual revenue growth in the medium term, aided by the continued rollout of its Smart Platform initiatives. The company expects to be underlying EBITDA and underlying free cash flow positive in FY25.

Steadfast Group Delivers Strong 1H25 Results

Steadfast Group Ltd has reported a stellar set of 1H25 results, with underlying net profit after tax (NPAT) up 20.9% to $128.1 million and the interim dividend increasing 15.6% to 7.80 cents per share.

The Group's underlying EBITA grew 14.6%, driven by 9.1% organic growth and 5.5% acquisition growth. The Steadfast Australasian Network brokers delivered 7.9% growth in gross written premium to $6.5 billion, while the Steadfast Underwriting Agencies generated $1.22 billion in GWP, an 11.7% increase over the prior period.

Steadfast continued to execute its disciplined acquisition strategy, completing $198.9 million of acquisitions year-to-date. The Group has reaffirmed its FY25 guidance, with the exception of a revision to the EBITA guidance range to $585 million - $595 million.

Looking ahead, Steadfast remains focused on executing its proven business model, making accretive acquisitions, growing organically, optimizing subsidiary performance, and maintaining a disciplined approach to margins and expense control.