Overview of ReadyTech's 1H FY24 performance

ReadyTech (ASX: $RDY) has reported its 1H FY24 results, showcasing a combination of solid revenue growth and strong margins. The company's recurring revenue increased by 14.2% to $54.7 million, with underlying EBITDA margin reaching 31.8%. Additionally, ReadyTech signed major enterprise contracts totaling $7.0 million across 16 wins, reflecting the company's sustained growth and high conviction pipeline.

Executive commentary on 1H FY24 performance

ReadyTech continues to demonstrate its commitment to delivering profitable growth, as evidenced by the 1H FY24 results. The company's focus on sustainable subscription revenue growth, strong segment EBITDA margins, and the average value of new customer wins increasing by 29% reflects the success of its enterprise strategy. The strategic pillars of transitioning to the cloud, meeting compliance needs, and uplifting customer experience have been pivotal in driving the company's growth across multiple verticals.

Summary of 1H FY24 results and outlook

ReadyTech's 1H FY24 results highlight its strong financial performance, with a focus on sustainable revenue growth and strategic enterprise wins. The company's outlook for FY24 includes revenue growth in the low double digits, with an underlying EBITDA margin projected to be in the range of 34%-35%. Looking ahead to FY27, ReadyTech aims to achieve organic revenue growth of over $170 million, with EBITDA margins increasing to the high 30%. The company's strategic M&A playbook, focus on AI innovation, and positive medium-term outlook position it for continued growth and profitability.