ASX Earnings Wrap: Plenty to cheer as Dubber, Keypath and Mosaic Brands report strong numbers
It’s earnings season again as the ASX market announcements page becomes increasingly flooded with earnings lodgements.
To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.
– Revenue of $10.7m in Q2 FY24, up 9% on Q1 FY24,
– Reiterates its previously advised guidance for FY24 of revenue of $45m and costs of $65m
– Cash on hand at 31 December 2023 was $30.2m
The SaaS company began FY24 with a stated strategy to grow its revenue by 50%, realise annualised cost efficiencies of $20m, and drive higher margins which targets a break-even operating cash position in FY25.
At the end of the December quarter, Dubber says it is on track to achieve those goals.
The company says its unique proposition is to be the data capture backbone for the world’s telecommunications networks, having a long-held belief that AI based services will be fundamental to every type of network-based communication in the future.
Dubber has now reiterated its expectations for FY24, which was released with the FY23 Annual Report.
– Q2 FY24 revenue of US$31.4 million, 14.9% higher than pcp
– H1 FY24 revenue of US$66.9 million, 14% higher than pcp
– Strong cash position of US$41.7 million (with no debt) as of December 31
Keypath said it’s making progress in its strategic focus on Healthcare education in the US and the APAC region.
“Further underlining our confidence in the future, we continue to expect future vintages will achieve US$25 million – US$35 million in revenue at maturity,” said Keypath founder and CEO, Steve Fireng.
Keypath says it is well-positioned to expand its technology and services to continue assisting universities in providing quality access to education in a digital environment, including by continuing to grow programs across partners and regions.
– Loan portfolio for the quarter increased to $2.07 billion, 24% above pcp
– Loan originations of $291 million, 2% below pcp
– Quarterly revenue of $54.4 million, 46% above pcp
During the quarter, Plenti achieved strong operational performance across all areas of its business, which the company said was especially pleasing given the focus on its strategic partnership with NAB.
“We enter 2024 excited about our ability to drive strong operational results in our existing activities, whilst also delivering on exciting new initiatives, most notably the launch of the ‘NAB powered by Plenti’ car loan,” said CEO, Daniel Foggo.
Plenti’s loan portfolio remains diversified across three lending verticals, with the contribution from renewable energy continuing to increase over the period.
Automotive loan originations were $153 million, up 7% on pcp, but down 1% from the prior quarter.
Renewable energy loan originations reached a record of $42 million, up 25% on pcp.
Plenti say it is on track to achieve the FY24 priorities, which includes growing revenue to over $200 million.
– H1 expected NPAT is approx. $5.9m, up +50% on pcp
– In-store only comparable sales -6.6% vs pcp
– Balance sheet net current asset position improves by circa $11.6m
The increase of 50% on NPAT was despite MOZ absorbing an estimated negative impact of $4.3m due to an adverse currency movement against the USD.
Stock intake for the half was around $41m below prior year, in-line with the Group’s balance sheet improvement strategy.
Since returning the Group to post-Covid profit in FY23, the company said its priority was on improving its balance sheet in FY24, as the final step of its turnaround.
“That saw us take a front foot approach on stock management for the first half and negotiating an improved cost price for goods looking to the next 12 months,” said CEO Scott Evans.
“We’ll now lift stock intake from March for the second half on the back of some of the most favourable inventory costs the Group has achieved in its history.”
In terms of H2 outlook, recent negotiations have resulted in the Group achieving some of the most favourable cost prices for its products experienced in its history, which is forecasted to further support earnings and balance sheet improvement in H2.