accesso Technology Group (ACSO) H2 2024 earnings summary

Executive summary

• Delivered FY2024 revenue of $152.3 million, up 1.9% year-over-year and at the upper end of guidance, with 5.3% underlying growth after adjusting for discontinued operations.

• Cash EBITDA reached $22.8 million (15% margin), slightly down year-over-year but ahead of expectations, with profit before tax at $11.7 million and net cash $28.7 million at year end.

• Growth driven by resilience in transactional revenue, new business wins across key verticals, and a diversified customer base in 33 countries.

• Maintained strong balance sheet and operational excellence, with a focus on cost control, efficiency, and high employee engagement.

• Focused on ticketing, virtual queuing, and restaurant/retail solutions, with strong cross-sell and up-sell strategies.

Financial highlights

• Transactional revenue grew 2.5% year-over-year to $114.7 million, making up 75% of total revenue; distribution revenue up 32.2%.

• Gross margin improved to 78.1% from 76.4% after removing low-margin seasonal staffing costs.

• Professional services revenue declined 14.9% due to project timing, while recurring maintenance/support revenue increased, driven by acquisitions.

• Operating profit up 32.4% year-over-year, aided by lower acquisition-related expenses.

• Share repurchases totaled $8.1 million since October 2023, with a new $10 million buyback announced.

Outlook and guidance

• Cautious outlook for FY2025, not expecting to exceed 5.3% underlying growth due to macroeconomic uncertainty and seasonal factors.

• Cost management and maintaining cash EBITDA margin remain priorities, with consensus margin at 14% and company aiming to match or exceed.

• Regional attractions expected to provide resilience as consumers shift to local entertainment.

• Pipeline for new wins remains robust, especially for the Freedom product.

• Diversified and resilient business model to support ongoing performance.