Shares in Infomedia Limited (ASX: IFM) have surged 25% since January 2024, handily outperforming the S&P/ASX 300 Index (ASX: XKO), which rose just by 6% during the same period.
Infomedia shares are charging 2.5% higher at $1.81 at the time of writing after the ASX small-cap company reported robust FY24 results today.
Let's find out what the automotive industry software platform provider reported.
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Balanced and profitable growth
Key highlights from the Infomedia's FY24 results include:
- Total revenue increased by 8% from a year ago to $140.8 million.
- Annual Recurring Revenue (ARR) at the end of June 2024 was $144.1 million, up 9% from a year ago.
- Underlying cash EBITDA (earnings before interests, taxes, depreciation, and amortisation) surged 17% to $33 million.
- Reported net profit after tax (NPAT) increased by 32% to $12.7 million.
- NPAT adjusted for non-cash amortisation costs rose 26% to $20.9 million.
- The company declared a final dividend of 2 cents per share for a total FY24 dividend of 4.2 cents per share.
Underlying free cash flow decreased by 6% to $27.2 million, largely due to income tax payment changes.
What else happened in FY24?
Infomedia's revenue increased 8% to $140.8 million, with 99% of this being recurring revenue. ARR also grew strongly at approximately 8%, reflecting resilient demand across its global product offerings.
The company also highlighted the balanced growth by region and product categories. For example, Infomedia continued to expand the number of Chinese OEM brand partners while signing the first light-commercial vehicle contracts with Isuzu and Hino. In addition, Infomedia made significant progress in mature products like Superservice and Microcat during FY24.
Operationally, Infomedia continues to expand its global footprint in the Americas, Asia-Pacific, and European regions, securing new contracts and increasing penetration in key markets.
Commenting on the FY24 results, Infomedia CEO Jens Monsees said:
In the last 2 years, we have achieved our objective to create strong profitable growth and a globally diversified business.
This is shown by our 17% increase in Cash EBITDA. Infomedia is a growing and profitable technology company with significant market opportunities in all regions and all products.
FY25 outlook
Management guides for FY25 revenue in the range of $144 million to $154 million. The company believes its profitability will remain stable, barring any unexpected swing in the global economy.
Despite some anticipated customer churn in FY25, Infomedia expects revenue growth from recent contract renewals and further investment in its product portfolio, particularly in Infodrive, which has shown double-digit growth.
Valuation comments
The Infomedia share price is up more than 2% to $1.81 today.
At this share price, Infomedia shares are valued at 25x FY25 profit estimate by S&P Capital IQ.
The company offers a fully-franked dividend yield of 2.3%.
