Integrated Research (IRI) H2 2024 earnings summary

Executive summary

• FY 2024 marked a turning point with 19% revenue growth, strong profit, and robust cash generation, supported by improved operating efficiencies and a turnaround in the Americas and Europe.

• Strategic shift underway to product and technology-led growth, with a CEO transition and board refresh setting the stage for FY 2025 priorities.

• High customer retention and ongoing managed migration to cloud, with a focus on optimizing existing business and redirecting resources to new opportunities.

Financial highlights

• Statutory revenue increased 19% to AUD 83.3 million year-over-year; pro forma revenue was AUD 74.8 million, down 1%.

• Net profit after tax (NPAT) was AUD 27.1 million; cash at bank increased 72% to AUD 31.9 million.

• Cash receipts from customers were AUD 72.4 million, down 5%; pro forma EBITDA margin stable at 22%.

• Total contract value (TCV) rose 22% to AUD 83.9 million, driven by renewals and new wins in the Americas.

• Annual recurring revenue (ARR) was AUD 66.6 million, down 1% year-over-year, impacted by FX and Collaborate churn.

Outlook and guidance

• FY 2025 is a transition year, focusing on larger, complex customers and product-led growth, with a lighter renewals book weighted to the second half.

• Collaborate churn expected to persist, especially among smaller customers migrating to SaaS.

• New business and upsell pipeline is up, weighted to Collaborate; tax rate expected to normalize as R&D credits are exhausted.