Integrated Research (IRI) H2 2024 earnings summary

Executive summary

• FY 2024 marked a turning point with 19% revenue growth to $83.3 million, strong cash generation, and improved profitability, including NPAT of $27.1 million and a 72% increase in cash at bank to $31.9 million.

• Strategic shift towards product-led growth, CEO transition, and board refresh set the stage for FY25 priorities, with a focus on optimizing existing business and targeting larger enterprise customers.

• Americas and Europe returned to growth, driven by strong renewals, new business, and a 22% increase in Total Contract Value (TCV) to $83.9 million.

• High customer retention and ongoing managed migration to cloud, with churn persisting in the Collaborate segment.

Financial highlights

• Statutory revenue grew 19% year-over-year to $83.3 million; pro forma revenue declined 1% to $74.8 million.

• NPAT was $27.1 million, up 193% year-over-year; statutory EBITDA increased 103% to $24.6 million, while pro forma EBITDA declined 5% to $16.7 million.

• Cash at bank increased 72% to $31.9 million; cash receipts from customers were $72.4 million, down 5%.

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

• Cash conversion rate remained high at 97%; pro forma EBITDA margin stable at 22%.

Outlook and guidance

• FY25 is a transition year, focusing on larger, complex customers, product-led growth, and organizational restructuring.

• Renewals book is lighter and weighted to the second half, with churn in Collaborate expected to persist as clients migrate to SaaS.

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