ReadyTech Holdings Limited
Appendix 4D
Half-year report
1. Company details
Name of entity: | ReadyTech Holdings Limited | ||||
ABN: | 25 632 137 216 | ||||
Reporting period: | For the half-year ended 31 December 2021 | ||||
Previous period: | For the half-year ended 31 December 2020 | ||||
2. Results for announcement to the market | |||||
only | $'000 | ||||
up | 63.7% | to | 35,715 | ||
Revenues from ordinary activities | |||||
Profit from ordinary activities after tax attributable to the owners of | |||||
R adyTech Holdings Limited | up | 336.2% | to | 5,814 | |
Profit for the half-year attributable to the owners of ReadyTech Holdings | |||||
Limited | up | 336.2% | to | 5,814 | |
Dividends | |||||
use | |||||
There were no dividends paid, recommended or declared during the current financial period. |
Comments
The profit for the Group after providing for income tax amounted to $5,814,000 (31 December 2020: $1,333,000). Refer to the 'Review of operations' in the Directors' report for further commentary and analysis on the results.
3. Net tangible assets | ||||||
Reporting | Previous | |||||
period | period | |||||
Cents | Cents | |||||
Net tangible assets per ordinary security | (54.15) | (63.98) | ||||
The net tangible assets per ordinary security as presented above is exclusive of right-of-use assets and lease liabilities. | ||||||
4. Control gained over entities | ||||||
personal | ||||||
Name of entities (or group of entities) | Avaxa Pty Ltd, Open Windows Software Pty Ltd | |||||
Date control gained | 24 September 2021, 16 December 2021 | |||||
For | ||||||
5. Loss of control over entities |
Not applicable.
6. Dividends
Current period
There were no dividends paid, recommended or declared during the current financial period.
Previous period
There were no dividends paid, recommended or declared during the previous financial period.
ReadyTech Holdings Limited
Appendix 4D
Half-year report
7. Dividend reinvestment plans | ||
Not applicable. | ||
only | ||
8. Details of associates and joint venture entities | ||
Not applicable. | ||
9. F reign entities | ||
Details of origin of accounting standards used in compiling the report: | ||
use | ||
Not applicable. | ||
10. Audit qualification or review | ||
Details of audit/review dispute or qualification (if any): | ||
Not applicable. | ||
personal | ||
11. Attachments | ||
Det ils of attachments (if any): | ||
The Interim Report of ReadyTech Holdings Limited for the half-year ended 31 December 2021 is attached. | ||
12. Signed | ||
As authorised by the Board of Directors | ||
Signed ___________________________ | Date: 16 February 2022 | |
Tony Faure | ||
Chairman | ||
Sydney | ||
For |
onlyReadyTech Holdings Limited
ABN 25 632 137 216
useInterim Report - 31 December 2021 personalFor
ReadyTech Holdings Limited Directors' report
31 December 2021
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group' or 'ReadyTech') consisting of ReadyTech Holdings Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2021.
onlyDirectors
The following persons were directors of ReadyTech Holdings Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:
To y Faure - Non-Executive Chairman
Marc Washbourne - Chief Executive Officer
Elizabeth Crouch AM - Non-Executive Director
Timothy Ebbeck - Non-Executive Director
Tom Matthews - Non-Executive Director
Mark Summerhayes - Alternate Non-Executive Director to Tom Matthews
usePrincipal activities
During the financial half-year, the principal continuing activities of the Group consisted of:
● Education and Work Pathways - market leading provider of student management system to vocational education and training, international and English Language and higher education providers;
● Workforce Solutions - provider of payroll and employee management solutions from cloud-based technology to outsourcing of human resource function; and
● Government and Justice - provider of case management software as a service solution to local governments, state governments and justice departments.
personalReview of operations
The profit for the Group after providing for income tax amounted to $5,814,000 (31 December 2020: $1,333,000).
ReadyTech Holdings Limited ('ReadyTech' or the 'Company'), a leading SaaS business focused on providing next generation cloud-based software to customers within the education and work pathways, workforce solutions, and government and justice sectors, is pleased to announce its results for the six months ended 31 December 2021 ('1H FY22') in which the Company delivered another period of strong growth.
1H FY22: continued strong growth across all key metrics1
● Revenue up 63.7% to $35.7 million
▪ Like-for-like2 revenue growth of 16.8%
▪ Net customer revenue retention increased further to 97%
● Like-for-like2 subscription revenue growth of 23.3% to $29.8 million ● Underlying EBITDA up 55.2% to $12.9 million
▪ Underlying EBITDA margin of 36.0% ● Statutory NPAT up 336% to $5.8 million
Commenting on the 1H FY22 result, ReadyTech Co-Founder and CEO, Marc Washbourne said:
"ReadyTech has delivered another period of strong like-for-like growth, maintaining the trend of consistent increases in Forecu ring SaaS revenue and earnings. The financial results that continue to be achieved are an outcome of our laser focus n delivering, implementing and supporting next generation, people-centric software across our Education & Work Pathways,
W rkforce Solutions and Government & Justice segments."
"ReadyTech is increasingly being recognised for its configurable and adaptable cloud-based platforms, deep domain expertise and highly attractive user experience. Our deep investment in exceptional product-market fit, track record of successful delivery in the enterprise market, and a well-definedgo-to-market strategy saw us win 22 new customers of high value during the half-year. This strong new business growth was complemented by account management teams executing on cross-sell and upsell opportunities, extending our share of wallet within the existing customer base."
- All figures are in AUD and comparisons are made against 1H FY21 unless specified. 1H FY22 underlying results exclude non-recurring costs of ($0.6) million, which includes the impact of transaction and restructuring costs of $1.0 million, impairment of intangible asset of $4.4 million relating to government licensing opportunity and the impact of revaluation of contingent consideration of $(6.0) million.
- Like-for-likefigures include pro-forma Open Office financials for 1H FY21 and exclude the contribution of AVAXA and Open Windows in 1H FY22.
1
ReadyTech Holdings Limited Directors' report
31 December 2021
"We also continued to execute our strategy of reinvestment for growth, with strategic hires across research and development, sales and marketing, and customer onboarding, ensuring that the vertical SaaS playbook ReadyTech has developed over many years continues to deliver high value and sustained growth within each segment we serve. Capability and customer
footprint has been further enhanced through the acquisitions of AVAXA and Open Windows, which are integrating well into onlythe high performing ReadyTech culture."
Strong like-for-like revenue growth maintained at high margins
On a like-for-like2 basis, revenue was $35.0 million, up 16.8%. Total revenue for 1H FY22 was $35.7 million (1H FY21: $21.8 million), including the part year contributions of AVAXA and Open Windows of $0.7 million.
High quality subscription revenue grew at a faster rate than total revenue on a like-for-like basis, with 23.3% growth to $29.8 milli n. Likewise, net customer revenue retention increased to 97% (FY21: 96%) reflecting ReadyTech's focus on mission- critical software and customer satisfaction.
useOrganic growth was driven by a combination of new customer wins, user subscriptions and module upgrades. ReadyTech's
strategy of targeting higher value and enterprise customers was also evident with average revenue per new customer
increasing to $59,800 (1H FY21: $42,500) - including 22 new customers generating aggregate annualised revenue of $5 million.
The Company continued to prudently reinvest top line growth back into the business, with planned growth in sales and
marketing to 10% of revenue (1H FY21: 9.6%), research and development costs increasing to 30.5% of revenue (1H FY21:
27.2%) and LTIP impact of $0.4 million (1H FY21: $0.2 million).
Accelerated growth in Education & Work Pathways
personal1H FY22 saw an acceleration in revenue growth for Education & Work Pathways of 27% to $14.9 million (1H FY21: $11.7 With customers attracted to ReadyTech's integrated solutions for the replacement of disparate systems as well as strong
million), which also included a $0.6 million part period contribution from AVAXA. Growth was driven by substantial new business, in addition to significant upsell of the learning management system, capitalising on the accelerating trend to digitise lear ing offerings.
New customer wins were well-weighted towards enterprise, resulting in average revenue per new customer of $52,700 (1H FY21: $45,800). Noteworthy wins reflecting ReadyTech's proven experience and ability to deliver on complex technology requirements included enterprise training organisation Australian Pacific College, employment services provider Workways and tertiary education provider Avondale University.
Solid growth in Workforce Solutions
Wo kforce Solutions continued to increase traction in the stand-up economy, with 10.3% growth in revenue to $11.1 million. Revenue growth was a function of new all-in-one platform customer wins and significant upgrades from existing customers. The value in all-in-one deployments was demonstrated by average revenue per new customers won during the half-year of $116,300, which contributed to the increase in average revenue per new customer for the segment to $48,200 (1H FY21: $39,800).
product-market fit, key customer wins during the half-year included Auckland Theatre Company, major agricultural company Trevelyan Pack & Cool, and leading hotel operator The Langham.
Forthe pro-forma 1H FY21 period. Results also included an initial $161,000 contribution from Open Windows, following the December 2021 acquisition. In the half-year, average revenue per Government & Justice customer was $254,000 (FY21: $145,000), reflecting the enterprise nature of the customer base.
Uplift in Government & Justice subscription revenue
G vernment & Justice delivered revenue growth of 19.3% to $9.7 million, like-for-like2 basis of 17.7%, which included 62% gr wth in subscription revenue to $8 million. Recurring revenue is now 81% of segment revenue, compared to circa 60% for
With digital transformation providing a continuing tailwind, key local government wins included Town of Claremont (WA) and Oberon Council (NSW) - both customers choosing ReadyTech for its contemporary cloud-based platform and citizen-centric approach. In the justice market, the Fair Work Commission also represented a key win for the Company's proven and highly advanced case management software solution.
Significant changes in the state of affairs
On 24 September 2021, the Group acquired 100% of the ordinary shares in Avaxa Pty Ltd for total consideration of $2,039,000.
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ReadyTech Holdings Ltd. published this content on 15 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2022 21:48:44 UTC.