The Tyro Payments Ltd (ASX: TYR) share price is under close watch before the open on Monday after the company reported its FY24 results.
Tyro shares are currently settled at 98 cents per share, having lifting nearly 2% last week.
Let's see what the company posted.
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Tyro share price in focus solid full-year results
Key highlights from Tyro's FY24 earnings include:
- Revenue of $471 million, up 8.2% year over year.
- Gross profit increased by 9.1% year-on-year to $210.8 million.
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 31.6% year over year to $55.7 million.
- EBITDA margin of 26.4%.
- Statutory net profit skyrocketed by 328% to $25.7 million.
What else happened in FY24?
The Tyro share price had a mixed year in FY24, but for the business itself, it was all growth. Transaction value came to $42.9 billion, up 80 basis points from last year.
But this led to a 32% growth in EBITDA, and nearly 330% growth in net profit for the year.
Tyro also launched several "enhancements" for its merchants, including the launch of its next-generation Android Tyro Pro terminal and the embedded payments software development kit (SDK).
These accompanied a set of new online payment features built into its Tyro Merchant portal, which customers use to analyse transaction activity and payment trends.
It also expanded its partner network, integrating with a "global health insurer", while Tyro's integrated banking products also saw a 27% increase in active banking users compared to FY23.
Meanwhile, free cash flow "grew five-fold" over the year to $30.4 million, underscored by the growth in net profit.
What did management say?
Tyro CEO and managing director Jon Davey expressed confidence in the company's trajectory in his comments:
We are here to make payments the easiest part of doing business, whether that be in-store, on-the-go or online. This year, we accelerated the delivery of game-changing solutions for our merchants and partners including our Tyro Pro terminal and embedded payments software development kit, which allows partners to embed our payments technology into a wide range of devices.
Davey also highlighted Tyro's commitment to innovation and growth:
We also continued to innovate to bolster our online payments offering for merchants and our broad partner network, which increased by more than 100 active partners this year. Merchants can now process payments within the Tyro Merchant Portal and send payment invoice links directly to customers.
We also enabled card-matching for Australian-first instant cashback app, Hello Clever, and integrated payments for StoreConnect, the first Salesforce-native POS for small businesses.
What's next?
Looking ahead to FY25, Tyro is forecasting continued gross profit growth, expecting a range between $218 million and $226 million, with an EBITDA margin of around 28%.
The company also outlined medium-term targets, aiming to hit a 'Rule of 40' from FY26 onwards. This is a Software-as-a-service company metric where the combined growth rate and profit margin should equal or exceed 40%.
CEO Davey said the company was focused on continued growth:
We remain focused on extending our product offering and continuing to develop valuable innovations for our partners and merchants.
In FY25, we will enter two new verticals where we have a unique capability that will provide a competitive advantage, including unattended payments and a growing vertical adjacent to Health. With these initiatives in play, we are confident in our runway for growth.
Tyro share price snapshot
The Tyro share price is under close watch today after the company posted strong profit numbers in its FY24 earnings.
In the last 12 months, the stock is down more than 15%.
