Infomedia Limited (ASX: IFM)
ASX small cap stock of Infomedia Ltd has been surging since January this year. From FY19 to FY21, IFM revenue increased at a CAGR of 6.7% and accelerated to 8.3% from FY22 to FY24 while reporting a notable 15% cash EBITDA CAGR from FY22 to FY24, reflecting operational efficiency and profitability.
Infomedia Ltd’s full year FY24 Financial Performance reflects Robust Growth across its products and operating regions. The 8% rise in revenue and 17% increase in underlying cash EBITDA clearly reflects the company’s operational efficiency and profitability.
For the year ended on 30 June 2024, the total revenue increased by 8% on pcp to $140.8 million
Exit ARR reached to $144.1 million, up by 9% on pcp. The 17% increment in underlying cash EBITDA to $33.0 million, with a margin of 23%. Reported NPAT increased to $12.7 million up by 32% and NPATA increased by 26% to $20.9 million.
Cash on hand witnessed 9% growth to $70 million. Earnings per share increased by 33% to 3.38 cents, and the full-year fully franked dividend per share increased by 5% to 4.20 cent.
IFM underpinned by a solid performance across its product lines and strategic expansions has solidified its place as a leader in the data-driven automotive ecosystem.
Despite some potential short-term impacts from slight customer churn with SimplePart and upcoming price adjustments on contract renewals set to take effect in the second half of FY25, the company is actively enhancing its data handling and operational efficiencies through a future joint data landing approach.
Looking ahead, the company projects total revenue between $144 million and $154 million, with stable margins. The company is entering Phase Three, focusing on scaling its product portfolio, bolstering its go-to-market strategies in EMEA and the Americas, and expanding its global market footprint. This strategic approach is poised to enhance Infomedia’s position and drive sustained growth.
Considered as among best ASX Growth Shares, Infomedia Ltd has managed to maintain its global presence and diversified recurring revenue streams. As of 30 June 2024, the company supports over 250,000 users across 195 countries, reflecting its expansive reach and solid market position. Over the past decade, Infomedia has consistently demonstrated revenue growth and profitability, driven by its strong focus on recurring revenue, which constitutes 99% of its total income. The increased geographic presence with its footprint strength in the Americas with expanded penetration into Mexico and Canada will support the growth trajectory. In the APAC region, new contracts with Malaysian partners and Chinese OEMs like Chery, MG, LDV, and GWM Haval are broadening its market reach. Additionally, the recent addition of light commercial vehicle customers further opens new growth avenues. In the EMEA region, Infomedia is working to further its market presence and impact. Ongoing contract renewals are a critical component of Infomedia's growth strategy, securing revenue for the next 3-5 years and underpinning its financial stability.
Source: Company’s Report
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