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INTEGRATED RESEARCH LIMITED — Earnings Release 2023
Jul 11, 2023
65142_rns_2023-07-11_493553bd-47a0-4f62-9985-a839175de602.pdf
Earnings Release
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Integrated Research Ltd > ABN 76 003 588 449 Level 9, 100 Pacific Highway, North Sydney NSW 2060 Australia t: +61 (2) 9966 1066 e: [email protected]
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MARKET ANNOUNCEMENT
Full Year Results Trading Update
Sydney, 12 July 2023 – Integrated Research (IR) (ASX: IRI) , a leading global provider of user experience and performance management solutions for payment transactions and collaboration systems provides the following trading update for the year ended 30 June 2023.
| Year ended | 30 June 2023 | 30 June 2022 | % change |
|---|---|---|---|
| (A$m) | (guidance) | (actual) | |
| Total contract value | 67.0 - 69.0 | 56.7 | 18% - 22% |
| Statutory revenue | 67.0 - 70.0 | 62.9 | 7% - 11% |
| Pro-forma revenue | 73.0 - 76.0 | 79.8 | (4% - 9%) |
| EBITDA | 10.0 - 13.0 | 8.5 | 18% - 53% |
| Cash At Bank | 18.6 | 12.3 | 51% |
A stronger renewals period than FY22, together with new contract wins has resulted in an increase in reported Total Contract Value (TCV), anticipated to be in the range of $67m - $69m, up 18% - 22% on the previous corresponding period (pcp). Collaborate and Transact product lines achieved strong growth, while Infrastructure continued to solid growth, relative to prior periods.
On a geographic basis, the Americas performance was 3% - 7% ahead of the pcp, with growth across all product lines. Asia-Pacific region continued its strong performance with pcp growth in the range of 30% - 40%, with both Collaborate and Infrastructure tracking ahead of expectations. Europe reported 15% - 20% growth, particularly across Transact and Infrastructure, following low volumes in the pcp.
Subject to audit, the Company expects this to translate into reported statutory revenue in the range of $67m - $70m in FY23, an increase of 7% - 11% on the pcp. On a pro-forma basis, revenue is anticipated to be in the range of $73m - $76m, down 4% - 9% on the pcp, reflecting lower non-recurring (services/testing) revenue.
During FY22, IR actively resized the business to address the impact of the difficult trading environment at the time; this cost focus continued in FY23. While the Company experienced an uptick in expenses, this was retained at under 3%. Inflationary pressures remain around salaries, other employee related costs, and travel as face-to-face client meetings, events and trade shows recommence. Notwithstanding these cost pressures, statutory EBITDA in FY23 is anticipated to be in the range of $10m - $13m, an increase of 18% - 53% on the pcp.
Cash at Bank increased by 51% on the pcp to $18.6m as a result of strong collections focus. This cash balance excludes restricted cash for security deposits.
Commenting on the earnings guidance update, John Ruthven, CEO said: “The strength of the renewal base continues to underpin overall company performance, noting that renewals were weighted slightly to the first
half and offset by lower Collaborate renewals. New business was slower than anticipated, despite some signature new customer wins in the Collaborate portfolio. The improved cash position highlights the value of our blue-chip customer base.
It is pleasing to end the fiscal year with all geographic regions achieving growth, as well as all three product lines being up on the prior period. Changes that we have made are taking time to embed, however we remain confident in the priorities outlined in prior earnings announcements, as critical to driving the company’s return to growth.”
The Company looks forward to providing greater detail upon reporting the full year results, which are anticipated to be released on 25 August 2023.
By Authority of the Board.
Will Witherow Company Secretary Integrated Research Limited ABN: 76 003 588 449
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About Integrated Research Limited (ASX: IRI). Integrated Research (IR) is the leading global provider of user experience and performance management solutions for payment transactions and collaborative systems. We create value through our real-time, scalable & extensible hybrid cloud platform and our deep domain knowledge to optimize operations of mission critical systems and improve user experience through intelligent and actionable insights. We enable many of the world’s largest organizations to simplify complexity and provide visibility over systems that millions of people can’t live without – systems that allow them to transact and collaborate. For further information on IR, visit www.ir.com.