The Domain Holdings Australia Ltd (ASX: DHG) share price is shooting higher on Friday after the company posted its FY24 results.
Shares are currently trading at $3.23 apiece, nearly 5% higher from the open.
Meanwhile the S&P/ASX 200 Index (ASX: XJO) has started less than 1% higher this morning.
Let's see what the company reported.
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Domain share price roars on solid full-year results
The key takeouts from the quarter include the following:
- Revenue Increased by 13.1% year over year to $391.1 million
- Earnings before interest, tax, depreciation and amortisation (EBITDA) surged 26.2% to $137.1 million
- Net Profit After Tax (NPAT) rose 27.9% compared to FY23, hitting $49.4 million
- Earnings Per Share (EPS) was up 27.8% year over year to 7.8 cents per share
- Declared final dividend of 4 cents per share, bringing the full-year dividend to 6 cents per share
What else happened in FY24?
Whilst its share price gyrated, business was good in FY24 for Domain. It posted 16% growth in average revenue per listing along with "record depth penetration" of its target market.
It also expanded its digital offerings, particularly with the launch of Audience Boost, which management says increased views per listing by around 30% in July 2024.
The company also saw a 10% growth in its residential unique audience, outperforming the growth of its major competitor.
Sales in its Media business were also up 52% year over year, ahead of the "broader advertising market".
It finished the year with $150.8 million in net debt, whereas profits grew 28% year over year due to its performance. However, this didn't seem to help the sentiment on the Domain share price.
What did management say?
Domain's CEO, Jason Pellegrino, was notably pleased with the performance:
Domain's strong FY24 results reflect the efforts of more than 1,000 talented people at Domain, who are delivering on our Marketplace strategy by building and releasing great solutions. Most pleasingly, our key assets of unique data, quality audiences and product innovation have delivered 'Only on Domain' experiences that provide real benefits to consumers, agents and enterprise customers.
Pellegrino also commented on the company's market strategy:
During FY24 we created a number of differentiated user experiences that will support Core Listings and speed up Marketplace growth. As part of our FY25 price change, we launched Audience Boost, a social media amplification product that automatically and efficiently extends all depth sale listings across a variety of digital channels.
This market-first, differentiated value proposition combines AIM's proprietary, hard-to-replicate technology platform with Domain listing marketing solutions to provide significant value to agents and vendors.
What's next?
Looking ahead to FY25, Domain plans to continue its investment in technology platforms while maintaining productivity improvements.
Regarding financials, it projects more profit growth in FY25:
Domain expects stable EBITDA margins in FY25, balancing confidence to invest in the ongoing growth of the business with continuing efforts to drive productivity.
Domain share price snapshot
The Domain share price has seen a positive boost following its strong FY24 performance.
It is down nearly 18% in the past 12 months.
