The Objective Corporation Limited (ASX: OCL) share price is among the best performers on the All Ordinaries on Thursday following the release of its full year results.
In afternoon trade, the information technology software and services provider's shares are up 6% to a record high of $18.68.
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Objective share price higher after delivering strong profit growth
- Revenue increased 36% to $95 million
- Annualised recurring revenue (ARR) up 31% to $74 million
- Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 49% to $26 million
- Net profit after tax rose 45% to $16 million
- Research and development of $23 million or 24% of revenue
What happened in FY21 for Objective Corp?
All sides of the Objective Corp business were on form during FY 2021, delivering solid growth in ARR. This goes someway to explaining why the Objective share price has been such a positive performer today.
The release explains that Objective ECM ARR increased 73%, Objective Connect ARR rose 30%, Objective Trapeze ARR jumped 34%, and Objective Regworks ARR rose 33%. This means that 73.7% of the company's revenue is now recurring in nature. While this is down slightly in percentage term from a year earlier, it is up significantly over the last few years.
The good news is that its ARR of $74 million is still a fraction of its total addressable market. Today's presentation highlights that Objective has TAM of over US$200 billion across the ANZ, UK, and US markets.
What did management say?
While management hasn't commented on the result today, last month it released an update and spoke about the last 12 months.
Objective's CEO, Tony Walls, said: "We are really pleased with our performance in FY 2021 – delivering outstanding outcomes for our customers, and protecting our employees and their families while facing an uncertain operating environment. Our financial results in FY2021 reflects the continued delivery of our strategic plan, with strong growth in recurring revenue and earnings underpinning our highest ever investment in innovation."
What's next for Objective?
Positively for shareholders and the Objective share price, management appears confident that its strong performance will continue in FY 2022.
While no real guidance has been provided, it has stated that it expects "material revenue and profit growth in FY2022."
Following today's gain, the Objective share price is up 63% since the start of the year.
