Integrated Research (ASX:IRI) share price on watch after beating FY 2021 guidance

The Integrated Research Limited (ASX: IRI) share price was on form on Thursday. The performance management software company's shares rose …

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The Integrated Research Limited (ASX: IRI) share price was on form on Thursday. The performance management software company's shares rose 2% to $1.96.

Investors will now be hoping that the Integrated Research share price builds on this on Friday following the release of a trading update after the market close.

A happy person clenching fists in celebration sitting at computer.

Image source: Getty Images

What did Integrated Research announce?

The company notes that in late June it provided guidance for full year revenue in the range of $74.1 million to $79.1 million and full year profit after tax in the range of $4.1 million to $7.1 million.

According to today's update, management is now expecting its revenue to be at the top end of its guidance range and its profit after tax to be a touch ahead of its guidance range.

Positively for the Integrated Research share price, the company also notes that its net cash has increased over the last 12 months. It stood at $5.5 million at the end of June 2021, up from $4.7 million in June 2020.

What were the drivers of this outperformance?

Management advised that this outperformance was driven by a number of new contract signings and renewals that closed toward the end of the reporting period.

In addition to this, unrealised exchange gains over the month of June were a contributing factor to its profit exceeding its guidance range.

What about the future?

Integrated Research advised that it continues its transformation with the launch of new cloud-based products to drive long term growth and recurring subscription revenues.

It also revealed that it recently added new customers with these new solutions. This includes support for the Microsoft Teams and Zoom environments. And as anticipated, a new solution for Webex was released in June.

In light of this, management expects further growth in its customer base in FY 2022.

The Integrated Research share price has lost almost half of its value over the last 12 months. Shareholders will no doubt be hoping this is an inflection point for its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Integrated Research Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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