Strong, profitable growth in FY22 and positive outlook heading into FY23
26 August 2022 – Sydney, Australia: Infomedia Ltd (ASX:IFM), a leading provider of SaaS and DaaS solutions to the global automotive industry, is pleased to announce its full year financial results for the 12 months ended 30 June 2022 (FY22).
|Underlying Cash EBITDA2||24.8||19.3||29%|
|Free cash flow||22.1||12.4||79%|
|Net profit after tax||8.2||16.0||(49%)|
|Earnings per share (cents)||2.19||4.26||(49%)|
|Total annual dividend per share (cents)||5.60||4.45||26%|
Infomedia reported revenue of $120.1 million for FY22, compared to $97.4 million pcp, representing strong growth of 23% in a challenging environment, with solid contributions from all regions and products. Growth and momentum in Annual Recurring Revenue (ARR) remains strong, with an exit ARR of $119.3 million at 30 June 2022.
Underlying Cash EBITDA2 was $24.8 million, up 29% from $19.3 million pcp. Underlying Cash EBITDA is a key internal metric focused on the operating performance of the business independent of the effect of the accounting impact of expensing acquisition earnout payments and the capitalisation of development costs. FY22 Underlying Cash EBITDA grew faster than revenue reflecting positive operating leverage.
On an organic basis (excluding the SimplePart acquisition that was included in the FY22 results for 12 months and the FY21 results for 1 month), total revenue in FY22 was $103.5 million, up 8% from $96.1 million pcp, and Underlying Cash EBITDA was $21.3 million, up 13% from $18.9 million pcp. This demonstrates Infomedia’s positive operating leverage on an organic basis.
Reported net profit after tax (NPAT) was $8.2 million, down 49% pcp. NPAT was impacted by $14 million of non-cash depreciation and amortisation and other non-operating items including the expensing of earnouts during the period relating to the successful Nidasu and SimplePart acquisitions.
Free cash flow (cash generated from operating activities after capital expenditure and capitalised development costs) increased by 79% to $22.1 million in FY22.
Infodrive delivered solid growth capitalising on the increasing demand for data and insights solutions from our customers. The SimplePart acquisition is on track and delivered a pleasing first full year contribution with new e-commerce contracts signed across each of our three regions.
Infomedia’s strong balance sheet, with $69 million cash on hand and no debt, enables the Company to continue to pursue its successful acquisition strategy in identified key growth regions.
During the year, Infomedia strengthened its senior leadership team with the addition of a new Chief Executive Officer, Chief Financial Officer and Chief People and Culture Officer.
Infomedia’s new CEO, Jens Monsees said: “It is an honour to join such a global, growing and profitable technology business. Having now been in the role for 90 days, I have been very impressed by the depth of talent and experience within each of the teams across our international locations. The deep and long-term partnerships that we have been able to establish with our OEM customers over many years are based on our innovative products and form a springboard for our exciting next chapter of growth.”
“The 23% growth in revenue in FY22 and even more importantly, that more than 95% of our revenue is recurring, is strong evidence of Infomedia’s ability to grow from its Australian roots and drive further success as a global company.”
Infomedia has strong ARR momentum and is actively pursuing new growth opportunities. With a global footprint and portfolio of data rich solutions, Infomedia is well placed to deliver revenue in the range of $131 million to $139 million in FY23. Infodrive and SimplePart solutions are expected to contribute with double digit growth in FY23.
An additional focus of the new leadership team will be on well-defined operational excellence initiatives which are expected to improve Underlying Cash EBITDA in FY23 and beyond.
Commenting on Infomedia’s future, Mr Monsees said: “Infomedia has many exciting opportunities to leverage its data assets to support our global customers in a world of evolving technologies such as electric vehicles, Connected Cars and shifting consumer behaviours towards digital customer experiences. I am thrilled to be part of the team and look forward to working together to implement our new vision and strategy.”
Infomedia Ltd declared a final dividend of 3.0 cents per share (franked to 14%). Total dividends for FY22 were 5.6 cents per share, representing a 26% increase pcp. The dividend record date will be 5 September 2022 and the payment date will be 22 September 2022.
2022 Annual General Meeting
Infomedia’s Annual General Meeting is scheduled to take place on 16 November 2022. A formal Notice of Meeting will be released in due course.
Update on engagement with bidders
Infomedia continues to engage with bidders to assist them in progressing their indicative proposals towards binding offers. No binding offers have been received to date. There is no certainty that any of the indicative proposals will result in a binding offer or that any binding offer will be recommended by the Board. Infomedia will keep the market updated on material developments in accordance with its continuous disclosure obligations. Infomedia shareholders do not need to take any action at this time.
Investor group briefing being held at 11:30am AEST today
As previously notified to the ASX, Jens Monsees (CEO) and Gareth Turner (CFO) will host an investor group briefing from 11:30am AEST today to present the FY22 results, followed by a Q&A session. To attend this briefing, please register via the following link: https://s1.c-conf.com/diamondpass/10023798-asf532f.html. Registered participants will receive dial-in details upon registration.
1 pcp: prior corresponding period.
2 Infomedia uses certain non-IFRS measures that are useful in understanding the company’s operating performance. These are consistent with the internal measures disclosed in Infomedia’s Operating Segment Note and are directly reconciled to the company’s statutory reported IFRS financial information within the Operating Segment Note.