The technology-driven translation provider has achieved another impressive set of results and continues to flag strong growth ahead.

Straker Translations (ASX:STG), the only pure play translations business on the ASX, saw revenue continue to rocket up in the first half of the financial year as it locked in a further three years with computer giant IBM.

The global leader in AI-based translation services, which reports a March 31, year end, announced revenue of $33 million, up 42 per cent from the same period the year before.

Adjusted EBITDA was $0.6 million, a significant improvement on the -$1m in the same period last year.

The company also reported a strong balance sheet with no debt and cash of $12.4 million as at September 30, 2022 and reaffirmed its guidance for profitable growth in revenue in FY23 of 20 per cent with gross margins exceeding the 54 per cent achieved in FY22.

Guidance on track

Founder and CEO Grant Straker said the company was well positioned in the face of geopolitical tensions and adverse macroeconomic conditions and saw increasing revenue opportunities in Q4.

“Straker’s global reach and capability as well as our technology leadership represent a more compelling proposition to customers than ever,” Straker said.

“We are building on our strengths with our new focus on delivering our services through workplace super apps such as Microsoft Teams and Slack, a move aligned with our strategy to ‘be where the customer works’.”

Big name partnerships

Straker signed a partnership with Microsoft as well as a long term contract with the United Nations during the six months to 30 September. It also extended its multi-million dollar contract with IBM.

Straker said the backing of such strong enterprise customers further supported the company’s position as a leader in the sector which was growing robustly.

“The global language services market continues to grow and is forecast to reach $US84.9 billion in 2026, representing sustained year-on-year growth of nearly 7%, while the consolidation seen over the last few years will continue,” he said.

Bailador backing

Leading tech investment company Bailador has been upping its stake in Straker over FY22. The ASX-listed company focuses on small but growing technology businesses with a “proven” business model that have a global addressable market.

It’s backed Straker since its IPO and has increased its shareholding, currently sitting on a 13.5% stake.

Bailador also holds tech unicorn SiteMinder which it backed well before the company listed a year ago.

This article was developed in collaboration with Straker Translations, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.