DUG Technology Ltd (ASX: DUG) shares are soaring 9.08% to $3.19 today after the company released its FY24 results.
The ASX small-cap company specialises in analytical software development and high-performance computing (HPC). It is known for its innovative, cost-effective software products, which are focused on geoscience data analysis.
Let's find out what the ASX technology company reported today.
Headline numbers
Financial highlights from DUG Technology's FY24 financial results included:
- Sales wins of US$67.4 million, up 35% from a year ago
- Revenue from customers of US$65.5 million, up 29% from a year ago, supported by a 35% jump in its services revenue
- Earnings before interests, taxes, depreciation, and amortisation (EBITDA) of US$16.6 million, up 10% year-over-year.
- Excluding third-party compute costs of US$6.6 million, underlying EBITDA grew by 54%.
- Net profit after tax (NPAT) of US$3.3 million, down 33%, mainly due to computing outsourcing costs. These costs will not occur in FY25 as the company internalised its compute requirements.
DUG's revenue grew by 29% to US$65.5 million in FY2024, with services revenue hitting a record high of US$54.7 million, a 36% increase. Software revenue also rose by 11% to US$7.4 million, while high-performance computing (HPC) revenue declined by 16% to US$3.4 million.
The company's profitability reached a record high, with an EBITDA of US$16.6 million, up 10%, and an underlying EBITDA of US$23.2 million, a 54% increase from the previous year.
DUG ended the year with US$9.4 million in cash and gross debt of US$1.2 million, which included a US$1 million loan repaid shortly after the fiscal year ended. The company had a net debt of US$14.5 million, a significant change from the previous year's net cash position of US$5.2 million, mainly due to investments in new computing equipment through asset financing.
Operating cash inflows decreased to US$12.1 million, primarily due to higher third-party compute costs. DUG invested US$31.3 million in new capital equipment to support its services business, with US$24.4 million of this amount funded through asset lease financing.
DUG managing director Matt Lamont said:
We've had another great year, breaking a number of financial records along the way. The growth of our Services business was particularly encouraging with the increasing uptake of our Multi-parameter FWI Imaging technology. In total we secured US$67.4 million in new services projects during FY2024.
Its Multi-parameter FWI Imaging technology is the company's new product attracting high demand because of its energy efficient feature amid anticipated power shortages.
FY25 outlook
The company remains upbeat going into FY25. The Services order book grew by 31% to US$36.5 million as of 30 June 2024, supporting strong growth expectations for FY25. The company believes its timely investment in new computer hardware in FY24 will support anticipated growth in MP-FWI imaging product sales.
Commenting on FY25, Dr Lamont added:
We recently announced the signing of a significant Intellectual Property (IP) licensing agreement with Baltimore Aircoil Company (BAC) which we believe will change the data centre cooling landscape globally.
The outlook for our Services business line continues to be strong. We are excited by our new Abu Dhabi office which has been commissioned and undergoing fit out.
Share price snapshot
The DUG Technology share price is up 9% today, approaching its all-time high.
Over the past year, the DUG Technology share price more than doubled.
