Gentrack Group Ltd (ASX: GTK) shares are hitting new heights on Tuesday.
In morning trade, the ASX tech stock surged a massive 24% to a record high of $11.65.
This follows the release of the full year results of the specialist software provider to energy utilities, water companies, and airports.
ASX tech stock rockets on full year results
- Revenue up 25.5% year on year to NZ$213.2 million
- EBITDA up slightly to NZ$23.6 million
- Statutory net profit after tax down 5% to NZ$9.5 million
- Cash balance up NZ$17.5 million to NZ$66.7 million
What happened during the year?
For the 12 months ended 30 September, the ASX tech stock reported a 25.5% increase in revenue to NZ$213.2 million.
This was driven by growth across the business. For example, its underlying Utilities revenue grew by 51% during the year. Management notes that upgrades and other customer transformations, new customer wins, and strong demand for innovation and change from across its customer base helped drive its non-recurring revenues 104% higher.
Whereas new customer wins in the UK and the Middle East lifted Veovo (airport) revenue by 45.5% over the prior period.
And while Gentrack's earnings may look disappointing on paper, it is worth noting that there are some one-off charges impacting its numbers.
The ASX tech stock advised that EBITDA was down slightly to NZ$23.6 million but includes NZ$7.1 million booked against expected payroll tax on its LTI schemes (compared to NZ$0.3m in FY 2023.
A true reflection of its performance is likely to be its cash balance, which stood at NZ$66.7 million at the end of the year. This is a NZ$17.5m increase over the start of the year despite investing NZ$12.9 million in Australian based technology company Amber.
Outlook
Also giving the ASX tech stock a boost today has been its outlook commentary. Management appears confident that its strong growth can continue in FY 2025. It said:
We remain confident of our mid-term guidance of growing revenue more than 15% CAGR and an EBITDA margin of 15-20% after expensing all development costs. In FY25, we expect both Utilities and Veovo to show continued revenue growth and EBITDA improvement, the extent of which will depend on when business opportunities close in the year. We will look to provide further guidance on FY25 outlook later in the financial year.
Following today's gain, Gentrack's shares are now up over 140% since this time last year.
