Damstra (ASX:DTC) share price slumps 5% despite revenue surge

Shares in the OH&S software group are falling on Thursday

| More on:
Douugh investor looking angry while talking on phone and looking at computer

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Damstra Holdings Ltd (ASX: DTC) share price is falling this morning following the Aussie health and safety software company's latest full-year results.

Damstra share price slumps despite revenue surge

In early trade, the Damstra share price is down more than 5% after the company provided its results for the year ended 30 June 2021 (FY21). Some of the key takeaways include:

What happened in FY21 for Damstra?

The Damstra share price has slumped 39% lower over the past 12 months despite a year of headline growth. One significant event was the October 2020 acquisition of Vault Intelligence Ltd (ASX: VLT) for non-cash consideration of $99.3 million.

Damstra increased its ARR, cash receipts and user numbers throughout the year. Other significant achievements for the year include global footprint expansion and new product launches.

Damstra now has 737,000 global users with its products used in more than 20 countries. The Aussie software group also announced several major contracts including with NBN Co. and a trial with a new global mining client.

What did management say?

Damstra CEO Christian Damstra had the following to say about the result:

FY21 has been a transformational year for Damstra, having strategically repositioned our product offering under the Enterprise Projection Platform (EPP) banner, while delivering strong revenue growth and EBITDA performance.

We are pleased to have successfully integrated Vault into the Damstra ecosystem following its acquisition during the year. Signficantly outperforming the targeted operational synergies from the deal has helped us to drive strong operating leverage in the business, resulting in robust EBITDA and margins in FY21.

What's next for Damstra and its share price?

Damstra is targeting free cash flow breakeven in FY22 based on a higher revenue base and run-rated cash synergies from the Vault acquisition.

The Damstra share price has fallen in early trade, down 4.62% at the time of writing to $1.135. It is also down 25.5% year to date.

Motley Fool contributor Ken Hall 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 Damstra Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Damstra Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why 29Metals, Brainchip, Platinum, and Premier Investments shares are falling today

These ASX shares are having a tough time on hump day.

Read more »

Man with his head in his head because of falling share price.
Share Fallers

Why 29Metals, Atlas Arteria, IDP Education, and Mineral Resources shares are falling

These ASX shares are having a tough time on Tuesday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today

These ASX shares are starting the week in the red.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why are these ASX tech shares getting smashed today?

Owners of these two stocks are missing out today.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why AGL, Brickworks, IGO, and New Hope shares are dropping today

These ASX shares are having a poor session. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Amcor, Arafura, Brainchip, and South32 shares are tumbling today

These ASX shares are having a tough time on hump day. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling

These ASX shares are having a poor session. But why?

Read more »