Tyro Payments (TYR) H2 2024 earnings summary

Executive summary

• Delivered strong FY24 financial results, with gross profit up 9.1% and EBITDA up 31.6%, transitioning to a significantly more profitable business.

• Strategic focus on product innovation, pricing transformation, and operating efficiency enhanced merchant proposition and drove performance.

• Expanded market opportunity through new verticals and partnerships, positioning for sustainable growth leveraging a strong balance sheet and proprietary tech stack.

Financial highlights

• Gross profit increased 9.1% year-over-year to AUD 210.8 million, within guidance.

• EBITDA rose 31.6% to AUD 55.7 million, with margin up to 26.4% from 21.9% last year.

• Net profit after tax quadrupled to AUD 25.7 million from AUD 6 million in FY23.

• Free cash flow reached AUD 30.4 million, more than five times last year’s figure.

• Payments transaction value grew 0.8% to AUD 42.9 billion; banking gross profit up 29% to AUD 12.6 million.

Outlook and guidance

• FY25 gross profit guidance set at AUD 218–226 million, representing 3%–7% growth amid economic uncertainty.

• EBITDA margin expected to improve to approximately 28% in FY25, with further increases to 29% in FY26 and 31% in FY27.

• Medium-term target to achieve a Rule of 40 score (gross profit growth + EBITDA margin) of at least 40 by FY26.

• Continued focus on gross profit growth and profitability despite challenging market conditions.