PCI-PAL (PCIP) H2 2024 earnings summary

Executive summary

• Achieved 20% revenue growth to £17.96m and first full year of adjusted EBITDA profit (£0.87m) and positive operating cash flow.

• Resolved all patent litigation, removing a major distraction and cash drain.

• Customer retention remained high at 97%, with net retention rate at 102%.

• Expanded partner ecosystem, including a global reseller agreement with Zoom.

• Strong balance sheet with £4.33m cash at year-end and access to a £3m undrawn credit facility.

Financial highlights

• Revenue up 20% year-over-year to £17.96m; recurring revenue up 24% to £16.06m (89% of total).

• Gross margin increased to 89% (from 88%).

• Adjusted EBITDA swung to £0.87m profit from a £1.11m loss; adjusted loss before tax reduced to £0.57m from £2.31m.

• Statutory loss before tax improved to £1.71m from £4.89m.

• Cash at period end £4.33m, up from £1.17m; positive adjusted free cash flow of £0.97m.

• New ACV contract sales £3.76m (down 10% YoY), but total contracted TACV up 17% to £19.21m.

Outlook and guidance

• Strong start to FY25 with new business sales ahead of prior year and in line with management expectations.

• Plans to increase investment in sales and marketing to drive future revenue growth.

• Confident in ability to fund operations and growth, with robust liquidity and undrawn credit facility.

• No dividend proposed for the year.