ReadyTech (ASX: $RDY) 1H FY24 Financial Results

ReadyTech Holdings Limited (ASX: $RDY) has reported a profit of $2,109,000 for the half-year ended 31 December 2023, a significant increase from $761,000 in the previous corresponding period. The company's total revenue increased by 14.2% to $54.7 million, with subscription and license revenue growing by 17.1% to $47.2 million. ReadyTech signed 16 new enterprise contracts with an annualized deal value totaling $7.0 million, reflecting a 29% increase in the average revenue per new contract. The company's underlying EBITDA for the half-year grew by 10.6% to $17.4 million, representing a margin of 31.8%.

Executive Commentary on 1H FY24 Results

Commenting on the 1H FY24 result, ReadyTech Co-Founder and CEO, Marc Washbourne, highlighted the company's successful delivery on its enterprise strategy with 16 new contracts signed in the first half of FY24. Washbourne emphasized that total revenue increased by 14.2% and subscription revenue grew by 17.1%, driven by the company's focus on carefully selected verticals with sizeable serviceable markets and similar customer challenges. He also expressed confidence in the company's strong pipeline of high conviction opportunities to the value of $30.0 million, providing a solid platform for further growth.

Summary of 1H FY24 Results and Outlook

ReadyTech Holdings Limited (ASX: $RDY) has demonstrated strong financial performance in the first half of FY24, with significant revenue growth and successful signing of new enterprise contracts. The company's focus on carefully selected verticals has resulted in a 14.2% increase in total revenue and a 17.1% growth in subscription revenue. With a strong pipeline of high conviction opportunities and a net leverage ratio of 0.7x, ReadyTech remains in a strong financial position to support its growth initiatives. The company's ambitions to continue winning major contracts and its sustained conversion rate provide an optimistic outlook for further growth in the upcoming periods.