The Nitro Software Ltd (ASX: NTO) shares are trading higher today following its presentation at the JMP Securities small-cap technology forum. At the time of writing, the Nitro share price is trading up 5.56% at $3.04.
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First half FY20 results and highlights
The presentation highlighted the company's first half results for FY20 which included a 60% increase in revenue to $19.1 million. Annual recurring revenue increased 57% to $20.2 million.
Nitro's financial performance for the half was able to meet or beat its prospectus forecasts. Its cash balance closed $8.7 million ahead of its prospectus plan of $35.2 million, which provides substantial resources to support working capital requirements and growth, including acquisitions.
About Nitro
Nitro is a document productivity software company focused on streamlining the most critical and widely used documents by businesses. The company listed on the ASX on 11 December 2019. The Nitro share price of $3.04 at the time of writing which is more than 100% higher than its initial public offering (IPO) offer price of $1.72 per share.
Its products include Nitro Pro which addresses common PDF productivity bottlenecks by enabling every worker with the tools to create, edit, convert, sign and secure PDF files. Nitro Sign is a simple, intuitive eSignature product backed by enterprise-grade security and supported by any tablet, desktop or mobile device. It also possess analytics and consulting services to support businesses in their Nitro migration and understanding of its value proposition. The company currently has more than 2 million licensed users across 11,000 business customers.
Business strategy and outlook
An independently-assessed combined PDF productivity and eSigning serviceable market was identified to be worth at least US$5.5 billion. The industry is likely to experience continued tailwinds on the back of remote work and digitisation.
The consumers of Nitro services are largely enterprises that generate predictable and expanding revenues. Based on Nitro licenses purchased by customers, 68% were Fortune 500 companies including GE, Exxon Mobil, BP and Caterpillar.
Looking ahead, the company reaffirmed its FY20 prospectus revenue forecast of $40.5 million and raises its ARR forecast to $26-27 million from $24.4 million. Nitro is a loss-making company and expects an earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $8.1-8.6 million for FY20, in line with its forecasts.
