The Nitro Software Ltd (ASX: NTO) share price is pushing higher in morning trade following the release of its full year results.
At the time of writing the document productivity software company's shares are up 4% to $1.80.
How did Nitro Software perform in FY 2019?
For the 12 months ended December 31, Nitro Software reported a 10% year on year increase in revenue to $35.7 million. This was ahead of its prospectus forecast and driven by strong subscription revenue growth.
Nitro Software reported a 91% jump in subscription revenue to $13.2 million. This helped drive its annual recurring revenue (ARR) up to $16.9 million at the end of the period. This was up 66% year on year and was also ahead of its prospectus forecast.
At the end of the period the company's subscription retention was strong at 90% and over 2 million business licences had been sold. Furthermore, Nitro Software had over 10,982 business customers, including 65% of the 2019 Fortune 500 and two of the 2019 Fortune 10.
The company posted an EBITDA loss of $3.8 million, which was $2.3 million better than its prospectus forecast. It also generated a net operating cash inflow of $0.4 million, largely in line with its prospectus forecast. At the end of the period, Nitro Software's cash balance stood at $47 million, which management believes positions it well to fund future activities and growth.
Management commentary.
The company's co-founder and chief executive officer, Sam Chandler, was pleased with FY 2019.
He said: "The 2019 financial year has been a monumental period for Nitro. We have achieved a strong set of results, underpinned by significant customer growth, both with new customers as well as our existing customer base who continue to expand their use of the Nitro Productivity Suite. Ending the year with over two million business licences sold is a truly remarkable achievement, reflecting 100% growth over the past four years."
Outlook.
Management advised that the company will continue to focus on delivering its growth strategy through the increased adoption of the Nitro Productivity Suite across its SMB, mid-market and enterprise customer base, as well as new customer wins and potential acquisitions.
It believes this puts the company on track to deliver on its prospectus forecast for FY 2020, with revenue growth of 13.5% to $40.5 million and an EBITDA loss of $5.3 million.
