ASX tech stock up 54% on positive trading update

Integrated Research had some impressive news for its shareholders today.

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ASX tech stock Integrated Research Limited (ASX: IRI) blew investors' minds with a 53.75% share price gain on Thursday to close the session at 62 cents.

The share price explosion followed the release of the company's FY24 trading update.

Integrated Research provides performance management and analytics for IT infrastructure, payments, and communications companies.

Not only did the company report a 93% jump in earnings before interest, taxes, depreciation, and amortisation (EBITDA) over the 10 months ending 30 April, it also upgraded its full-year guidance.

Let's take a look at the details.

ASX tech stock skyrockets on major financial boost

For the 10 months ending 30 April, Integrated Research reported $59.1 million in total contract value (TCV), up 8% on the previous corresponding period (pcp).

Between February and April, the company secured $8.4 million in new business, including six new customers, mainly in the Americas.

The renewal portfolio continues to perform well with 98% net revenue retention. Unaudited revenue for the period is $61.4 million, an increase of 11% on the pcp.

The company said it had contained cost increases to help deliver a massive 93% boost to EBITDA at $13.9 million.

Full-year 2024 results to 'materially exceed' last year

Integrated Research is now guiding FY24 TCV of $75 million to $84 million. This compares to $68.5 million for FY23.

The company expects revenue in the range of $76 million to $85 million. This compares to $69.8 million for FY23.

It anticipates EBITDA of between $18 million to $25 million. This is well above the $12.1 million EBITDA reported for FY23.

Commenting on the market update, CEO John Ruthven said:

We are pleased with our YTD performance and field execution, particularly in securing several key new Collaborate customer wins.

The changes we have made to our sales leadership team and go-to-market approach over the last 12-18 months are starting to bear fruit.

As we progress through May and June, we anticipate a strong finish to the financial year.

ASX tech stock share price snapshot

The Integrated Research share price has risen 70.8% in the year to date. This is a stunning outperformance on the S&P/ASX 200 Information Technology Index (ASX: XIJ), which is up 22.7%

Over the past 12 months, the ASX tech stock has soared 53.75% while the index lifted 43.7%.

That annual gain is equal to today's stunning one-day increase for the Integrated Research share price.

The company now has a market capitalisation of $69.84 million.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Scott Phillips.

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