Craneware (CRW) H1 2023 earnings summary

Executive summary

• H1 FY23 revenue rose 6% to $84.7m and Adjusted EBITDA rose 8% to $25.5m; performance was in line with Board expectations despite difficult customer markets.

• ARR was $166.4m, with customer retention above 90%; the cloud migration was effectively complete.

• Full-year results were expected to be in line with market consensus, with growth acceleration anticipated as US healthcare pressures ease.

Financial highlights

• Revenue was $84.671m vs $80.175m YoY; operating profit was $8.405m vs $7.664m.

• Adjusted EBITDA was $25.467m vs $23.679m; Adjusted PBT was $15.710m vs $17.072m.

• Profit before tax was $5.219m vs $6.234m; profit for the period was $3.932m vs $4.720m.

• Adjusted basic EPS was 41.0 cents vs 43.5 cents; basic EPS was 11.2 cents vs 13.5 cents.

• Revenue growth was 2% on a comparable basis assuming Sentry was owned for the full prior-year H1; Adjusted EBITDA growth remained 8%.

Outlook and guidance

• Full-year results expected to be in line with current market consensus.

• Near-term professional services conditions expected to remain challenging; software revenue was expected to increase as a share of revenue from its historical 80–85% range, with ~92% in H1 FY23.

• Growth acceleration expected over the medium term as US healthcare pressures abate, supported by recurring revenue, product expansion and cross-sell opportunities.