Integrated Research Ltd (ASX:IRI) FY25 Half Year Results Update
Financial Performance Update
Integrated Research Ltd (ASX:IRI) has announced its half-year results guidance for the period ending 31 December 2024, indicating total contract value (TCV) and statutory revenue at the upper end of previous estimates. TCV is projected to be between $26 million and $27 million, while statutory revenue is forecasted at $28 million to $29 million. Despite these numbers being lower compared to the prior corresponding period (PCP), the pro-forma revenue remains steady, indicating a slight decline of 2% against PCP.
EBITDA and Cash Position
The company expects its EBITDA to surpass earlier guidance, ranging from $3.9 million to $4.5 million, partially aided by foreign exchange benefits and gains from the sale of a non-core business. Cash at bank is reported at $31.1 million, showing resilience despite restructuring costs and a previously declared dividend payment.
Business Growth Strategies
A significant highlight is the strong improvement in new business TCV, which is expected to account for 29% of total TCV, equating to $7.6 million. This represents a 77% increase from the prior year, suggesting a promising trajectory for Integrated Research’s product-led growth strategy. The company’s disciplined cost management and continual relevance of its services to enterprise clients further support this outlook.
Looking Ahead
While the renewals book is softer this fiscal year compared to the previous one, the company anticipates that the second half will show a stronger performance. Integrated Research will release its audited interim results on 20 February 2025, providing investors with further insights into its financial health and operational progress.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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