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Revenue: Increased 2.1% to $125.7 million in Q4 and 10.7% for the fiscal year to $502.5 million.
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Recurring Revenue: Grew 1.1% to $88.2 million in Q4, 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 Q4, down from $25.1 million; $81.3 million for the fiscal year, up from $72.2 million.
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Adjusted EBITDA: Decreased to $35.6 million in Q4 with a 28.3% margin; $143.8 million for the fiscal year, up 7.5%.
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Cash Flow from Operating Activities: $40.3 million in Q4; $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: Returned $53.1 million to shareholders, an increase of 18.7% from the prior period.
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Acquisitions: Deployed $43.4 million on acquisitions, including media site and sea change.
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Quarterly Dividend: $0.26 per common share payable on February 28, 2025.
Release Date: December 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Revenue increased by 10.7% for the fiscal year, reaching $502.5 million, marking a third consecutive year of growth.
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Recurring revenue, including SaaS and maintenance services, grew by 16.4% for the fiscal year, highlighting strong demand for SaaS solutions.
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Net income rose by 12.6% to $81.3 million, demonstrating a focus on profitability.
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Cash and cash equivalents reached a record level of $274.2 million, with no external debt, positioning the company well for future growth.
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The company returned $53.1 million to shareholders through dividends, an increase of 18.7% from the prior period.
Negative Points
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Results from operating activities decreased in the fourth quarter compared to the previous year.
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Adjusted EBITDA decreased to $35.6 million in the fourth quarter, with a margin of 28.3%, down from the previous 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 expected growth, with some segments experiencing flat or declining revenues.
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Margins have been impacted by a large project in the Nordics that has been losing money, affecting overall profitability.
Q & A Highlights
Q: Can you explain why SaaS revenue appears flat despite the transition from on-premise licenses to cloud solutions? A: Stephen Sadler, CEO, explained that SaaS revenue is recognized over time, unlike product revenue which is recognized all at once. The decline in SaaS revenue is partly due to the acquisition of Lifesize, which had declining revenue due to product issues. Despite this, the revenue is higher than expected, and the SaaS segment is improving overall.