The coming year could be very exciting with regime change happening in the world’s biggest economy. Some high growth stocks could be readying for next phase of growth in 2025. Already hinting at revolutionary measures, this could offer fresh opportunities in growing companies to invest in
Gentrack Group Limited (ASX: GTK)
Gentrack Group Limited (ASX: GTK) delivered robust full-year results for FY24, ending 30 September 2024, with revenue surging 25.5% year-over-year to $213.2 million, reflecting strong performance across its Utilities and Veovo divisions. The Utilities segment achieved a 23% revenue growth, reaching $181.3 million. Excluding $27.6 million from insolvent customers in FY23, underlying revenue growth was an impressive 51%. Non-recurring revenue soared 104% to $60 million, driven by customer upgrades, transformations, and new wins, while recurring revenue climbed 33% to $121.3 million, supported by upsells and contract expansions.
Veovo, Gentrack’s airport and transportation solutions division, recorded exceptional growth, with revenue increasing 45.5% to $31.9 million. Non-recurring revenue doubled to $15.7 million, bolstered by $6.8 million in hardware sales. Recurring revenue rose 15% to $16.3 million, underpinned by strong customer adoption and upgrades in key markets such as the UK and the Middle East. EBITDA increased modestly to $23.6 million from $23.2 million in FY23, while NPAT declined to $9.5 million from $10 million, primarily due to a $1.3 million loss related to its 10% stake in Amber, an investment completed during the year. Despite this, Gentrack's cash position strengthened significantly, rising $17.5 million to $66.7 million, even after allocating $12.9 million to the Amber investment.
Strategically, Gentrack is among potential growth companies remaining committed to innovation, allocating approximately 15% of revenue to R&D to enhance its product portfolio. The company also plans to expand its sales, marketing, and international reach, aiming for a mid-term revenue CAGR above 15% and an EBITDA margin of 15-20% post-development costs. Notably, the Utilities division continues to benefit from strong demand in core markets, leveraging its advanced G2 platform to address energy transition needs in Australia, New Zealand, and the UK. Meanwhile, Veovo has expanded its footprint into Saudi Arabia and the Philippines, securing top-tier airport clients and maintaining strong customer loyalty through its Gen8 platform. Looking ahead to FY25, Gentrack anticipates continued momentum across both divisions, supported by a growing project pipeline, sustained customer retention, and further international expansion. These factors position the company well for achieving its long-term growth objectives and delivering shareholder value.
Ai-Media Technologies Limited (ASX: AIM)
In FY24, Ai-Media Technologies Limited (ASX: AIM) made remarkable strides in its transition to an AI-driven technology business, marking a successful shift from its traditional human services model. Since acquiring EEG in May 2021, the company has expanded its customer base and transitioned to higher-margin, recurring revenue streams, particularly through technology solutions. Total revenue grew 7% to $66.2 million, and EBITDA surged 24% to $4.1 million. A major highlight was the growth of technology sales, which increased by 37%, accounting for over 50% of total revenue for the first time. The launch of LEXI 3.0, a next-gen live automatic captioning tool, significantly contributed to this growth, delivering AI-driven captions with better quality than human-produced ones, at a fraction of the cost.
AI-Media is one of the best growth stocks to buy now, as it remains committed to expanding its technology offerings, particularly its LEXI suite. In FY24, the company continued to invest heavily in R&D, with the introduction of new products like LEXI Disaster Recovery and LEXI Recorded. The upcoming LEXI VOICE and LEXI Audio Description products are poised to expand the company’s market share, with LEXI VOICE expected to drive significant growth, due to its large addressable market of $69 billion, compared to the $2 billion market for captioning. With these advancements, AI-Media plans to accelerate its technology revenue to over 80% of total income by 2025. Additionally, the company is diversifying its reach, targeting sectors beyond broadcasting, including government, enterprise, and education, which will further fuel its global expansion.
AI-Media’s long-term vision includes significant revenue and EBITDA growth, with a target of $150 million in revenue and $60 million in EBITDA by FY29. The company is focused on three key growth strategies: geographic expansion into EMEA and APAC, market diversification into government and education sectors, and broadening its AI solutions to cover all language localization needs. The firm is also making substantial investments in R&D and sales, with $8 million earmarked for R&D in FY25. With a clear roadmap in place, including the major launch of LEXI VOICE in 2025, AI-Media is poised to continue its upward trajectory and solidify its position as a leader in AI-powered language solutions across multiple industries.
Source: Company’s Report
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