The Infomedia Limited (ASX: IFM) share price is sliding today following the company's release of its FY21 full-year results.
At the time of writing, the software company's shares are down 3.37% to $1.575 apiece.
Infomedia share price falls despite announcing top end of guidance
The Infomedia share price is in the red after the company delivered its FY21 results for the 12 months ending 30 June 2021. Here are some of the key financial highlights for the period:
- Total revenue of $97.4 million, up 3% on the prior corresponding period (FY20 $94.6 million);
- Earnings before interest, tax, depreciation and amortisation (EBITDA) of $47.6 million, up 3% (FY20 $46 million);
- Underlying Net profit after tax (NPAT) of $20 million, up 8% (FY20 $18.6 million); and
- Partially-franked final dividend of 2.3 cents per share, bringing full-year dividend to 4.45 cents apiece.
What happened to Infomedia in FY21?
Infomedia reported a strong finish to a challenging year, underpinned by $35 million in new contract wins across all geographical areas. This included clients such as Ford, Mazda, Audi, and BMW.
In particular, the Asia Pacific region represented $17 million in revenue for the second-half. This is around 40% higher than the next best region of Europe and the Middle East.
The company began transitioning from its legacy software to the Next Gen integrated platform. So far, good sales traction has been recorded with Infodrive (data, analytics, and Nidasu). As such, Nidasu has attained 57% revenue growth, reflecting strong demand for its products.
What did management say?
Infomedia CEO, Jonathan Rubinsztein commented on the result, saying:
Pandemic related restrictions delayed installations, which impacted the conversion of sales to revenue during the year. However, new opportunities emerged as evidenced by the total of our TCV that closed during the period.
Further, innovation and product integration in the core parts and service platform including Infodrive contributed to good sales and revenue momentum in the second half. Global sales and the addition of SimplePart, underpins strong growth into FY22.
What's next for Infomedia in FY22?
In FY22, Infomedia is forecasting total revenue to be in the range of $117 million and $123 million. This represents an increase of around 20% year on year. However, the future result is dependent on no adverse movements in foreign exchange rates and no significant impact from COVID-19.
The Infomedia board stated it's confident that the company can return to double-digit growth in FY22. The recent acquisition of e-commerce platform, SimplePart will help achieve the group's targets. Furthermore, Infodrive is expected to be a significant contributor to revenue in FY22.
