ASX tech stock Praemium Ltd (ASX: PPS) has surged into the green on Monday after the company released its FY24 results.
Praemium shares are currently swapping hands at 51 cents apiece, nearly 23% higher on the day as investors have a feeding frenzy on the stock.
Let's see what the company posted.
ASX tech stock rockets on solid full-year results
Key highlights from the year include:
- Revenue and other income of $84.9 million, up 12% from the previous year
- Earnings before interest, tax, depreciation and amortisation (EBITDA) of $21.5 million, a 39% improvement in H2 compared to H1
- Statutory net profit of $8.8 million, despite a 42% decrease year on year
- Funds under administration (FUA) of $57.4 billion, a 30% increase from FY23
- Declared a fully franked dividend of 1 cent per share
What else happened in FY24?
The ASX tech stock had a year of growth from the top to the bottom line. Sales growth of 12% year over year converted to a 42% growth in net profit.
FUA was also up 30% compared to last year, ticking over $57 million.
The company's re-pricing of self-managed account (SMA) fees, completed in April, contributed to a 6 basis point increase in average revenue margin.
And whilst EBITDA was down around $2 million compared to last year, compared to H1 FY24, the second half was up nearly 40%.
The acquisition of OneVue also featured during the year. Management says the integration of OneVue's platform is on track, with the migration plans agreed upon by all clients.
Praemium expects to achieve $3 million in synergies from this acquisition.
The company finished the year with around $109 in net assets, relatively flat with last year.
What did management say?
Commenting on the results, Praemium CEO and Executive Director Anthony Wamsteker said the company was in a good spot for FY25:
Praemium enters 2025 with optimism and positive momentum. The SMA platform's premium offer is
priced at competitive levels consistent with the market we serve. We will look to that experience as a model for ensuring the same rigorous review is applied to our VMA and VMAAS offers in 2025. Our investments in capability and resilience have set us up for long-term successWe are also on the cusp of launching our next generation IDPS. We have listened to our stakeholders and deployed our best operational, technology and product experts to ensure this service will meet the needs of a significant portion of our target market. We already have active portfolios in this IDPS and will launch fully in October 2024.
What's next?
Looking ahead, Praemium plans to launch its next-generation IDPS in October 2024. This is expected to cater to a significant portion of its target market.
The company is also focused on reviewing its VMA and VMAAS offerings to ensure they meet the evolving needs of its clients.
CEO Wamsteker noted the OneVue platform will also contribute heavily in FY25:
Our OneVue Platform acquisition is on-track. We have finalised plans for migration of OneVue clients to Praemium solutions. Each client has had this plan agreed with them. Our plans have confirmed that $3m in synergies is both achievable and expected.
ASX tech stock snapshot
This ASX tech stock has rallied hard after investors started a feeding frenzy following its FY24 results.
Zooming out, the stock is up 30% this year to date, but holds a 21% loss over the past 12 months.
