Objective (ASX:OCL) share price jumps on profit increase

Shares in the Aussie tech company are climbing on Thursday

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The Objective Corporation Limited (ASX: OCL) share price has jumped almost 5% on Thursday following the software group's results for the year ended 30 June 2021 (FY21).

Objective share price jumps on profit, dividend increase

Some of the key takeaways from today's results include:

The Objective share price skipped higher on Thursday following the update and remains up 4.87% to $19.59 at the time of writing.

What happened for Objective in FY21?

FY21 was a record year for Objective's investment in research and development (R&D). The Aussie software group invested $23.1 million in R&D, representing 24% of group revenue.

Objective kicked off the year by acquiring Itree Pty Limited in July 2020 for $18.4 million. The business was fully integrated into the group in FY21 as the group transitioned to a subscription revenue model.

Objective reported strong recognised revenue increases across key segments like ECMaaS (+73%), Connect (+30%), Trapeze (+34%) and RegWorks (+33%).

Operating costs increased by 11% to $54.6 million while annualised recurring revenue (ARR) jumped by 31% to $74.2 million.

What did management say?

Objective CEO Tony Walls commented on the latest results:

We are really pleased with our performance in FY2021 – delivering outstanding outcomes for our customers, and protecting our employees and their families while facing an uncertain operating environment.

Our financial results in FY2021 reflect the continued delivery of our strategic plan, with strong growth in recurring revenue and earnings underpinning our highest ever investment in innovation.

In FY2022 we expect the momentum of our business to drive a continued material lift in revenue and profitability.

What's next for Objective and its share price?

There was no FY22 guidance provided by Objective in the latest release. However, shares in the Aussie software group have climbed higher on the back of the strong FY21 result.

The Objective share price is up 71.4% in 2021 and the company has a market capitalisation above $1.8 billion.

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 Objective Corporation 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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