Objective (OCL) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY25 grew 6% year-over-year to $61.3 million, with annualized recurring revenue (ARR) up 10% to $107.0 million and net profit after tax at $17.0 million.

• Adjusted EBITDA increased 6% to $23.3 million, and cash balance rose 26% to $84.3 million, reflecting strong operational performance.

• 84% of revenue was recurring, the highest ever, driven by the transition to subscription software and SaaS, with SaaS CAGR at 29%.

• Interim unfranked dividend of 9.0 cents per share declared, payable 17 March 2025; total dividends paid in the half-year were $16.1 million.

• No external borrowings; strong cash position supports ongoing R&D and global expansion.

Financial highlights

• Adjusted EBITDA margin exceeded 39%, with gross margin at 94% and operating margin at 32%.

• R&D investment reached $15.1 million, representing 30% of software revenue, with 52% capitalised and 44% of all-time R&D investment in the last five years.

• Operating cash flow was $12.6 million, down from $16.3 million due to payment cycle seasonality; cash conversion ratio was 54%.

• Earnings per share rose to 17.9 cents, and net tangible assets per share increased to 37.9 cents.

• No large, one-off deals impacted results; growth was spread across business lines.

Outlook and guidance

• Management targets 15% ARR growth for FY2025, with strong early H2 momentum and a robust pipeline.

• Focus remains on organic growth, with M&A as a strategic pillar if aligned opportunities arise.

• Continued investment in R&D and accelerated delivery models to drive future sales and conversions.

• Major acceleration for the 360 product line anticipated in FY26 and beyond.

• Expansion of AI capabilities and use cases across the product portfolio.