The Straker Translations Ltd (ASX: STG) share price has been amongst the best performers on the local share market on Tuesday.
This morning the leading AI data driven translation platform provider's shares jumped a sizeable 11% higher to $1.50 following the release of its full year results.
How did Straker Translations perform in FY 2019?
As you might have guessed from the share price reaction, Straker Translations outperformed expectations in FY 2019.
According to the release, for the 12 months ended March 31 2019, the company posted a 44% year on year increase in revenue to NZ$24.6 million. This was also 4.7% above the company's prospectus forecast.
Management advised that the strong result reflected organic growth from enterprise customers in EMEA and APAC, and from partial year earnings from acquisitions completed in FY 2019.
New customer revenue grew by 14.2% year-on-year, and repeat revenue from the company's existing customer base grew 53.3%.
Straker Translations' gross margin was flat against the previous reporting period but rose 0.4% to 55% on a constant currency basis. This was driven by the operating leverage gained through Straker's world-class RAY Artificial Intelligence (AI) platform.
This ultimately led to gross profits increasing 44% year on year to NZ$13.4 million, which was also ahead of its prospectus forecast.
Also beating its prospectus forecast was its adjusted EBITDA. That came in at a loss of NZ$0.16 million, which was an 89% improvement on last year and the result of cost growth being lower than revenue growth thanks to the benefits of scale flowing through the business.
Operating cash outflow for the year was NZ$1.07 million, which was broadly in line with the previous reporting period. This left the company with a NZ$17.7 million cash balance and no debt.
The company's CEO and co-founder, Grant Straker, was pleased with the company's performance.
He said: "I am very pleased to see the continued growth of our RAY platform that delivers high margin revenue for us. Our hard work has resulted in an impressive year-on-year revenue growth and our customers are rewarding us with repeat revenue now reaching 83%."
Looking ahead, Mr Straker was optimistic on the company's prospects.
He added: "Straker is well placed to continue its growth trajectory, with a full year of revenue and earnings to flow from MSS, Eule and COM Translations, additional M&A opportunities being pursued, attractive organic growth opportunities, and a strong balance sheet in place to support the growth opportunities we see across our business."
