It has been a sensational start to the day for the Serko Ltd (ASX: SKO) share price.
In morning trade, the ASX tech share is up a massive 28% to $2.72.
Why is this ASX tech share rocketing higher?
Investors have been scrambling to buy Serko's shares after the company released its full-year results.
Here's a quick summary of how the company performed for the 12 months ended 31 March:
- Total income up 154% year over year to NZ$48 million
- Average revenue per booking up 65% to NZ$9.56
- Online bookings up 93% to 4.1 million
- Completed room nights on Booking.com for Business up 381% to 1.5 million
- EBITDAF loss improved by 23% to NZ$21.8 million
- Net loss after tax improved by 15% to NZ$30.5 million
- Cash and short-term deposits of NZ$87.7 million
- Underlying average monthly cash burn NZ$2.7 million
What happened during FY 2023?
For the 12 months ended 31 March, Serko reported a 154% increase in total income to NZ$48 million. A key driver of this growth was the company's deal with travel giant Booking.com, which saw 1.5 million room nights completed via Booking.com for Business.
And while Serko continues to operate at a loss, its metrics are all heading in the right direction and its balance sheet remains strong. The company's loss after tax improved by 15% to NZ$30.5 million, leaving it with cash and short term deposits of NZ$87.7 million.
In addition, the company's cash burn has been reducing, which bodes well for the future. Management advised that its underlying average monthly cash burn reduced from NZ$3.3 million to NZ$2.7 million in FY 2023. Things were even better in the second half, with its underlying average monthly cash burn averaging NZ$1.8 million.
Outlook
Also giving the ASX tech share a boost today has been its guidance for FY 2024.
Management advised that it expects total income to come in at NZ$63 million to NZ$70 million. This represents an increase of 31% to 46% year over year.
This is expected to be underpinned by the continued business travel recovery, growth in active customers in Booking.com for Business, foreign exchange tailwinds, and improving average revenue per completed room night.
In addition, management advised that there are a number of initiatives which have the potential to drive further revenue growth. However, the timing and therefore the impact on FY 2024 revenues is uncertain.
As for costs, Serko anticipates a total spend of between NZ$86 million and NZ$90 million. This reflects its current investment plans and anticipated efficiency gains, partially offset by higher volume related costs.
