hipages Group FY24 financial highlights

hipages Group Holdings (ASX:HPG) reports a successful FY24, marking its 20th anniversary with significant financial and strategic achievements. The company recorded a 13% increase in total revenue to $75.8 million and a 15% rise in recurring revenue to $72.1 million. Key advancements include the launch of the Tradiecore platform and enhanced cybersecurity measures.

hipages Group strategic outlook

hipages Group (ASX:HPG) celebrates 20 years with notable FY24 achievements, showcasing a 13% revenue increase and the launch of the Tradiecore platform. The company plans to expand its tradie network, enhance homeowner platforms, and invest in cybersecurity. With a strong cash position and no debt, hipages is poised for future growth, aiming for revenue growth in the low teens for FY25 and an increase in EBITDA margins. The focus will remain on leveraging technology, expanding market share, and maintaining a high level of tradie-homeowner connections while developing new software solutions and marketing strategies.

Executive insights on hipages Group performance

FY24 saw exceptional company performance with a 15% increase in recurring revenue reaching $72.1 million, and total revenue up by 13% to $75.8 million. EBITDA increased by $4.1 million to $16.4 million with margins rising to 22%. The Australian market saw 2.7 million tradie-homeowner connections, with 86% of jobs connected to at least one tradie. Annual Revenue Per User (ARPU) grew by 11%, with the tradie base expanding by 2%. In New Zealand, revenue grew by 28% with ARPU rising 21%, moving towards a subscription model akin to the Australian market. The launch of Tradiecore is a significant milestone, supporting the transformation from a marketplace to a single tradie platform. Emphasis on cybersecurity with investments in data discovery platforms and enhanced cloud security. The company is well-positioned for future growth, with a robust balance sheet featuring $21.3 million in cash and no debt. Emphasized the achievement of critical milestones despite economic challenges. Positive free cash flow of $2.1 million in FY24, highlighting platform vibrancy and user confidence. Tradiecore's launch allows tradies to manage jobs from lead claim to payment within a single interface, improving retention and growth avenues. Focus on expanding the tradie network and leveraging technology like machine learning and AI. Tradiecore aims to reduce exposure to economic fluctuations and improve customer retention. The tradie economy in Australia is valued at $141.8 billion, with the homeowner segment at $54.3 billion, growing at an expected 7% annually. Significant potential to increase market share, with only 19% penetration of the Serviceable Addressable Market (SAM). Job management technology adoption is low, presenting growth opportunities. Launch of additional Tradiecore functionalities planned for FY25.