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Gain: Up 2.1% to $125.7 million in the fourth quarter and up 10.7% for the fiscal year to $502.5 million.
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Recurring revenue: Grew 1.1% to $88.2 million in the fourth quarter, representing 70.2% of total revenue; increased 16.4% for the fiscal year to $346.6 million.
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Net income: $22.6 million in the fourth quarter, up from $25.1 million; $81.3 million for the fiscal year, up from $72.2 million.
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Adjusted EBITDA: Reduced to $35.6 million in the fourth quarter with a margin of 28.3%; $143.8 million for the fiscal year, up 7.5%.
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Cash flow from operating activities: $40.3 million in the fourth quarter; $151.8 million for the fiscal year.
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Cash and cash equivalents: Increased to $274.2 million as of October 31, 2024.
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Dividends: $53.1 million was returned to shareholders, an increase of 18.7% from the previous period.
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Acquisitions: $43.4 million deployed for acquisitions, including media sites and major changes.
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Quarterly dividend: $0.26 per common share payable on February 28, 2025.
Release date: December 13, 2024
For the full earnings call transcript, please refer to the full earnings call transcript.
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Revenue rose 10.7% this fiscal year to reach $502.5 million, marking the third consecutive year of growth.
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Recurring revenue, including SaaS and maintenance services, grew 16.4% this fiscal year, highlighting strong demand for SaaS solutions.
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Net profit rose 12.6% to $81.3 million, demonstrating the focus on profitability.
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Cash and cash equivalents reached a record level of $274.2 million, with no external debt, leaving the company well positioned for future growth.
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The company returned $53.1 million to shareholders through dividends, an increase of 18.7% from the previous period.
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The result from operating activities fell in the fourth quarter compared to the previous year.
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Adjusted EBITDA fell to $35.6 million in the fourth quarter, with a margin of 28.3%, down from the prior year.
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Demand for on-premise, perpetual software licenses has declined as more customers opt for SaaS solutions.
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The transition to SaaS has not resulted in the expected growth, with some segments experiencing flat or declining turnover.
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Margins have been affected by a major project in the Nordic countries that has lost money, affecting overall profitability.
Q: Can you explain why SaaS revenues appear stable despite the transition from on-premise licensing to cloud solutions? A: Stephen Sadler, CEO, explained that SaaS revenue is recognized over time, unlike product revenue that is recognized all at once. The decline in SaaS revenues is partly due to the acquisition of Lifesize, which experienced declining revenue due to product issues. Nevertheless, revenue is higher than expected and the SaaS segment is improving overall.
