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The Hansen Technologies Limited (ASX: HSN) share price is gaining in early trade, up 2.2% to $6.24 per share.

This comes following the release of the company’s full year financial results for the year ending 30 June (FY21)

Hansen Technologies’ share price lifts on record FY21 results

• Operating revenue increased 2% year-on-year to $307.7 million.
• Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $120.2 million, up 40% from the $85.7 million reported in FY20.
• Underlying net profit after tax (NPAT) of $56.8 million, up 93% from FY20.
• $70.1 million worth of free cash flow, up from $44.2 million in FY20.
• Declared a final, partially franked, dividend of 5 cents per share (cps).

What happened during the reporting period for Hansen Technologies?

The company, which provides software and services to the energy, water and communications industries around the world, delivered a record year across its key metrics.

It reported an improved underlying EBITDA margin for FY21 of 39.4%. Hansen said this was driven by improved cost management along with reduced travel during the global pandemic.

The company continued with new hires, saying its strong recruitment of new developers will enable it to deliver on its future.

The Hansen Technologies share price could also be getting a lift from the report it also brought on a “significant” number of new customer during the year, including Telefonica, Western Power, and Nautilus Solar.

In June BGH Capital made a takeover offer, valuing Hansen at $6.50 per share. The company said it will keep the market informed as matters progress. In the meantime, “We are focused on driving our strategic agenda while the BGH Capital process unfolds.”

What did management say?

Commenting on the results, Hansen’s CEO, Andrew Hansen said:

It is with great pleasure that we share the Hansen results for FY21, another record year for Hansen across all key metrics, continuing our strong performance throughout our history and more recently the global pandemic.

We have grown revenues 8% on a constant currency basis, driven a strong increase in profitability leading to a record full-year EBITDA while investing in our business to deliver the large volumes of new business and to position Hansen for a “COVID-normal” world…

The FY21 result proves the long-term resilience of our business model of growing revenues and EBITDA by investing in both our technology and the value accretive aggregation of strategically targeted businesses.

What’s next for Hansen Technologies?

The record date for the final dividend is 30 August, with the payment date on 21 September.

Hansen said it expects continued regulatory change to help drive its organic growth going forward. It’s targeting EBITDA margins of 32–35% over the long run.

Management said they are confident of achieving Hansen’s FY25 financial targets of $500 million of revenue.

The Hansen Technologies share price is up 95% over the past 12 months.

The post Hansen Technologies (ASX:HSN) share price takes off on record FY21 results appeared first on The Motley Fool Australia.

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• APA Group (ASX:APA) share price plunges on flat earnings growth in FY21
• SILK Laser (ASX:SLA) share price rockets 20% after beating FY21 guidance
• Northern Star (ASX:NST) share price up after reporting 300% profit surge
• Medical Developments (ASX:MVP) share price falls on $13 million loss
• Bravura Solutions (ASX:BVS) share price plunges 17% on FY21 earnings

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hansen Technologies. The Motley Fool Australia has recommended Hansen Technologies. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The APA Group (ASX: APA) share price is falling on Wednesday as the energy infrastructure business reported its FY21 earnings.

APA shares are down 1.76% at the time of writing to $9.79 a share.

Let’s investigate further.

APA Group share price falls on flat revenue and EBITDA growth

The company outlined its progress over the year, with key takeouts including:

• Revenue of $2,145 billion, a 0.7% growth year on year
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $1,633 billion, a 1.3% decrease from the year prior
• Net profit after tax (NPAT) of $3.7 million, down from $311.7 million a year ago
• Free cash flow (FCF) down 5.7% over the year to about $902 million
• Final distribution of 27 cents per security, up 2%, bringing FY21 total distributions to 51 cents per security

What happened in FY21 for APA Group?

Challenging the APA Group’s share price, the company advised it had faced headwinds in FY21. This is reflected in its financial performance.

For example, underlying EBITDA contracted by over 1%. This was due to “increased investment in strategic development opportunities,” as per the company.

However, it also stated this figure was down due to higher insurance and compliance costs, and “softer contract renewals in challenging market conditions”.

In addition, it recognised NPAT of $3.7 million, a significant down step from $311 million in the year prior. APA stated NPAT was low due to impacts from the “$249.3 million non-cash Orbost impairment charge,” alongside an additional $148 million in finance costs with APA’s bond and debt maturity redemptions.

Moreover, FCF came in 5.7% behind FY20, explained by a “non-recurring benefit” that occurred last year.

Further, the company announced its final distribution of 27 cents per security. This totals for an FY21 distribution of 51 cents per security, a 2% increase.

Finally, APA’s “organic growth pipeline” has now surpassed $1.3 billion, a $300 million gain from the year prior.

What did management say?

APA CEO Rob Wheals said:

In FY21, APA has again delivered stable and reliable earnings in challenging market conditions while at the same time making good progress on our strategy and laying the foundation for future growth.

Speaking on APA’s end markets, Wheals added:

Importantly, gas continues to play a critical role in Australia’s energy mix, both as a critical source of firming for variable renewable energy and helping ensure Australians will have access to a reliable, and affordable source of energy. Through our Pathfinder Program we have continued our investments in the energy solutions of tomorrow which have the potential to unlock the economic benefits from repurposing our infrastructure assets while ensuring we can continue to respond to the changing energy needs of our customers.

What’s next for APA Group?

APA Group forecasts its FY22 distribution to expand by around 4% to 53 cents per security.

In addition, it estimates its “organic growth capex (capital expenditures) to exceed $1.3 billion” over the coming two years.

APA is also underway on its “sustainability roadmap” where it has an ambition of achieving “net-zero emissions” by 2050. According to the report, this program is “now embedded into strategy”.

The APA Group share price has climbed 3.2% this year to date, well behind the S&P/ASX 200 Index (ASX: XJO) return of about 14% since 1 January.

The post APA Group (ASX:APA) share price plunges on flat earnings growth in FY21 appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The SILK Laser Australia Ltd (ASX: SLA) share price has been a very strong performer on Wednesday.

In morning trade, the laser clinic company’s shares are up 20% to $4.09 following the release of its full year results.

SILK Laser share price rockets after beating upgraded guidance

• Network cash sales increased 68% to $85.1 million
• Reported revenue grew 82% to $58.9 million
• Pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) up 180% to $17.3 million
• Pro forma net profit after tax up 839% to $7.5 million
• 11 new SILK clinics opened bringing network to 116 after acquisitions

What happened in FY 2021 for SILK?

SILK was on form in FY 2021, delivering a 68% increase in network cash sales to $85.1 million and a 180% jump in pro forma EBITDA to $17.3 million. The latter was ahead of its upgraded EBITDA guidance range of $15 million to $16 million, which explains why the SILK Laser share price is performing so strongly today.

This was driven by a 52% increase in like for like sales, new store openings, and strong demand in the injectables and body categories. Underpinning this was a 28% increase in average customer spend to $605.

What did management say?

SILK Laser’s Co-Founder and Managing Director, Martin Perelman, said: “The past 12 months have been a busy and highly successful period for SILK, and I am very proud of our first full year results delivered as a publicly listed company.”

“Given the dedication and commitment of SILK’s employees, franchisees and joint venture partners, and our focus on excellence in customer service, all of SILK’s service categories performed in line or above expectations, and the Company is well-positioned to drive long term growth.”

What’s next for SILK Laser?

Also potentially giving the SILK Laser share price a lift today was a trading update and management’s outlook.

It revealed that July 2021 sales and EBITDA exceeded what was achieved in July 2020 despite lockdowns. This is a big positive given that July and September 2020 were the most profitable months of FY 2021.

Mr Perelman said: “The underlying business foundations of SILK are strong as demonstrated by like-for-like clinic performance when adjusted for lost trading days due to lockdowns. We’re carefully managing the COVID-19 challenges across SILK, and at present approximately 80% of our SILK clinic network remains open. Our priority is to operate in a way that keeps our customers and team members safe. Our clinics continue to build waiting lists for clients in states where clinics are closed, to capture pent-up demand in readiness for easing of lockdown restrictions. We intend to provide a further update on Q1 FY22 trading in October.”

Management also revealed that it plans to open 4 to 8 new clinics in FY 2022, focused on Australia’s East Coast and New Zealand.

It sees these geographical catchments as key growth markets, with up to 25 potential new sites identified for FY 2022 and FY 2023 across Australia’s East Coast. Whereas in New Zealand it aims to add 4 new clinics in FY 2022, taking the total number to 19.

The SILK Laser share price is up 14% in 2021.

The post SILK Laser (ASX:SLA) share price rockets 20% after beating FY21 guidance appeared first on The Motley Fool Australia.

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• APA Group (ASX:APA) share price plunges on flat earnings growth in FY21
• Northern Star (ASX:NST) share price up after reporting 300% profit surge
• Medical Developments (ASX:MVP) share price falls on $13 million loss
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended SILK Laser Australia Limited. The Motley Fool Australia has recommended SILK Laser Australia Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Northern Star Resources Ltd (ASX: NST) share price has opened only slightly higher on Wednesday after the company released its FY21 full-year results.

At the time of writing, shares in the gold miner are up 0.2% to $9.78.

Northern Star share price higher on record financial result

Northern Star delivered a record financial result, following the incorporation of Saracen Mineral Holdings Ltd (ASX: SAR) from 12 February 2021. Key highlights for FY21 include:

• Revenue up 40% to $2,761 million.
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) lifting 216% to $2,268 million.
• Net profit after tax (NPAT) rallying 300% to $1,032 million.
• Final dividend of 9.5 cents per share
• Annualised gold price realised up 3% to A$2,227/oz
• Annualised all-in sustaining cost (AISC) increased 10% to A$1,483/oz

What happened to Northern Star in FY21?

The Northern Star share price has struggled to perform in FY21, down 22% year-to-date.

Despite the struggling share price, the company has continued to perform well from a financial and operational perspective.

Following the acquisition and incorporation of Saracen, Northern Star became the sole owner of the iconic Super Pit and Mt Charlotte underground mine in Kalgoorlie. It also welcomed two new operations into its portfolio, Thunderbox and Carosue Damn in Western Australia.

Northern Star said that the delivery of synergies from the merger in 2H FY21 resulted in “both savings and improved productivity at numerous levels”.

In addition, the company highlighted that FY21 delivered “exceptional exploration results”, with Group resources increasing 15% to 56Moz and Group reserves increasing 8% to 21Moz over the 9 month period to 31 March 2021.

“This expanded inventory will underpin the Company’s announced strategy to grow production to 2Moz per annum by FY26,” the company added.

Northern Star declared a new dividend policy, targeting a total annual dividend payment of 20-30% of cash earnings.

The company will be paying a final fully franked dividend of 9.5 cents per share, bringing its full-year payout to 19 cents per share.

Management commentary

Northern Star managing director Stuart Tonkin commented on the results of the enlarged company, saying:

With the completion of the merger, we have established a simple, effective strategy based on our three production centres in world class locations.

We have a clear five-year pathway to annual production of 2Moz a year with a strong emphasis on ensuring it is profitable growth.

This strategy involves investing capital in those projects which will generate the strongest returns and actively managing our asset portfolio to maximise this outcome.

We have an enviable asset base and world-class inventory with significant scope for further organic growth. And as these result show, we have the balance sheet and cash strength to unlock the full value of these opportunities in a way which will drive strong financial returns.

What’s next for Northern Star?

Northern Star forecasts FY22 production of 1.55-1.65Moz at an AISC between A$1,475 to A$1,575.

Its long term goal is to achieve profitable production of 2Moz per annum by FY26.

The Northern Star share price will go ex-dividend on Monday, 6 September, with the 9.5 cents per share dividend paid out on Wednesday, 29 September.

The post Northern Star (ASX:NST) share price up after reporting 300% profit surge appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Medical Developments International (ASX: MVP) share price is lower after the company released its full-year results for FY21.

At the time of writing, shares in the company are trading for $3.93 – down 2.48%. The ASX All Ordinaries Index (ASX: XAO), meanwhile, is 0.48% higher.

Let’s take a closer look at today’s announcement.

Medical Developments share price slumps despite 27% gross profit jump

• Revenue increased 12.1% on the prior corresponding period (pcp) to $25.6 million and gross profit leaped 27.4% to $19.1 million.
• A net profit after tax (NPAT) of $379,000 in FY20 turned into a $12.6 million loss for the period. This was driven mostly by a $9.6 million rise in administration expenses and a new $8.9 million impairment expense.
• Net cash outflow from operating activities of $8.9 million.
• Basic loss per share of 18.4 cents. In the pcp it was a gain of 0.58 cents per share.
• No full-year dividend was paid, as was the case in FY20.

What happened in FY21 for Medical Developments

The first significant announcement of Medical Developments in FY21 was the announcement of its expansion into Europe. The Medical Developments share price jumped 14% on the news at the time. Chair David Williams called the news a “turning point” for the company.

In October, Medical Developments appointed Brent McGregor as CEO of the company. He previously worked for CSL Limited (ASX: CSL).

The company also acquired the distribution rights to its product in Australia in the financial year and implemented a capital raising scheme.

Medical Developments also said the COVID pandemic affected sales of its pain relief and respiratory products. This was because fewer people were out and about (and therefore getting injured) and there was less cold and flu in the community due to border restrictions.

What did management say?

McGregor gave the following comments on today’s results.

I am as confident as I was in November in the potential of MVP. Promising work has continued on our next generation product (“Selfie”) and we are beginning to think of other innovations to support strategic sales growth.

Finally, I acknowledge the resilience and commitment of the (now international) MVP team who have worked extraordinarily hard in a difficult and uncertain time to maintain the supply of our important products to patients.

What’s next for Medical Developments

Looking forward, Medical Developments anticipates “strong sales growth” in FY22. It says it will be driven by its expanding European presence and a “renewed focus” on the Australian market.

More updates will be provided at the October AGM.  Despite this outlook, the Medical Developments share price is slipping today.

Medical Developments share price snapshot

Over the past 12 months, the Medical Developments share price has decreased 34.2%. Year-to-date, it is down an even greater 40.8%.

Medical Developments has a market capitalisation of $287 million.

The post Medical Developments (ASX:MVP) share price falls on $13 million loss appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. and Medical Developments International Limited. The Motley Fool Australia owns shares of and has recommended Medical Developments International Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Bravura Solutions Ltd (ASX: BVS) share price is plummeting following the release of the company’s earnings for financial year 2021 (FY21).

Right now, The Bravura share price is $3.11, 17.29% lower than its previous closing price.

Bravura share price slumps/jumps on 11% revenue decline

Here’s how the wealth management, life insurance, and funds administration software provider performed through FY21:

• $243 million of revenue –11% less than that of FY20
• Earnings before interest, tax, depreciation, amortisation (EBIDTA) down 15% to $49.3 million
• Operating cash flow of $52.7 million
• Net profit after tax of $34.6 million – down 14% on that of FY20
• 6-cent per share final dividend (unfranked)

Barvura’s wealth management segment reported $160.1 million of revenue in FY21, 11% less than in FY20. Its funds administration segment’s revenue fell 12% to $82.9 million.

According to Bravura, its wealth management segment’s revenue was lessened due to the effects COVID-19 had on its UK professional services work, but it was offset by contributions from FY20’s acquisitions.

But not all was dire. Contracted reoccurring revenue in wealth management rose 30%.

The company’s funds administration segment’s revenue was also impacted by the effects of COVID-19, but most of its reduced revenue was attributable to a lower mix of licence fees.

Bravura ended the period with $73.6 million cash in the bank and $1.2 million of financial facilities used.

What happened in FY21 for Bravura?

FY21 was a productive period for Bravura and its share price.

The company acquired Delta Financial Systems for $42 million in October 2020.

It also signed an initial 7-year contract with Aware Super to allow the super fund to use Bravura’s Sonata Alta and Digital Advice.

Bravura also signed or renewed contracts allowing the use of its software with a UK financial institution, a global investment bank, an Australian trustees business, an Australian superannuation fund, a New Zealand life insurance firm, a UK platform, and UK platforms for microservices.

What did management say?

Bravura’s CEO and managing director Tony Klim commented on the news driving the company’s share price today. He said:

Despite what has undoubtedly been a challenging year, Bravura has achieved its guidance. The result reflects the unprecedented impact of COVID-19, particularly on UK project work and the sales pipeline. Despite the impact, we have responded to changing market conditions and evolved Bravura’s strategy to stay well ahead of client needs. This will lead to greater flexibility for clients in the speed of their implementation and will help them smooth their IT spend. In doing so, Bravura also expands its total addressable market and moves towards a higher proportion of contracted recurring revenue…

Bravura continues to win new clients and has further developed its market credentials by investing in [research and development]. Confidence is expected to continue to improve as the COVID-19 vaccines roll out and is well placed to take advantage of improving client demand.

What’s next for Bravura?

Here’s what might drive the Bravura share price in FY22:

As the COVID-19 pandemic is still affecting its key markets, the company warned its near term outlook is uncertain.

However, it expects FY22 to bring growth of its net profits after tax in the mid-teens, relative to FY21’s adjusted profit after tax of $32.3 million.

Bravura commented that its sales pipeline is strong and demand in the UK is starting to improve. The company gave a shoutout to the UK’s vaccine rollout, which it believes is helping to instil confidence. Additionally, the company believes there are large opportunities for its Sonata Alta offering in Australia.

Over this financial year, Bravura believes its business will be driven by demand for software-as-a-service, microservices, cloud, and subscription-based services.

Additionally, it has sped up its digital transformation through the pandemic and expects demand in the UK and South Africa to pick up in FY22 as projects delayed by COVID-19 resume.

Bravura share price snapshot

The Bravura share price has lost its gains for 2021 today. Right now, it’s 1.8% lower than it was at the start of this year. It is also 28% lower than it was this time last year.

The post Bravura Solutions (ASX:BVS) share price plunges 17% on FY21 earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Blackmores Limited (ASX: BKL) share price has climbed just over 2% in the last month. In comparison, the S&P/ASX 200 index (ASX: XJO) is up 1.5% over the same period.

In early trading today, the Blackmores share price is up 0.56% at $78.97 apiece.

As the nutritional supplement company prepares to report its FY21 earnings on Thursday, let’s take a look at what happened to the Blackmores share price last earnings season back in February.

What did Blackmores deliver in its half year results?

Blackmores detailed a pattern of growth in its FY21 half-year results in February, including:

• Revenue of $302.6 million that grew 4% on a constant currency basis
• International and China revenue growth of 13% and 25% respectively
• 10% decline in ANZ revenue to $148 million
• Net profit after tax (NPAT) of $19.4 million, an 8% increase from the year prior
• Fully franked interim dividend of 29 cents per share.

While Blackmores did not shed any colour on guidance expectations, it did state that revenue in H2 would be “slightly lower” than H1.

Furthermore, it announced it would hand back $2.4 million of the $10.4 million in Jobkeeper assistance provided by the government for COVID-19 relief.

How did the Blackmores share price react?

The results were well received by the market, as investors drove the Blackmores share price north in the days following the announcement.

Blackmores shares climbed around 10% in the two days after the report, peaking at $81.41 before retracing to $76.57 the week after.

Afterwards, the Blackmores share price regained momentum and again shot back up near its 52-week high, closing at $87.19 on 15 March.

One month after its FY21 half-year results, Blackmores shares closed at $82.92, a 12% climb, despite no other market-sensitive information during this time.

Considering how its earnings growth was a positive to the Blackmores share price in February, investors will no doubt hope for a similar performance this time around.

This is especially true when factoring the recent run-up on the charts the company’s shares have exhibited since May.

At the current Blackmores share price, the company has a market capitalisation of $1.5 billion.

The post What happened to the Blackmores (ASX:BKL) share price last earnings season? appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Whispir Ltd (ASX: WSP) share price is climbing this morning. This follows the cloud-based communications company releasing its full-year results for the 2021 financial year.

At the time of writing, Whispir shares are up 5.93% to $2.50. It has been a challenging year for the Whispir share price. It’s dropped 36% since the beginning of 2021. However, in the past 5 days, the company’s value has crept up 10.8%.

Whispir share price in focus following double digit revenue growth

Here are the highlights from the company’s full-year results:

• Annualised recurring revenue up 28.5% to $53.6 million
• Recurring revenue now represents 96.7% of total revenue, up from 95.6% in FY20
• FY21 revenue of $47.7 million, up 22% from the prior corresponding period
• Operating earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of $4.7 million, up from a loss of $5.6 million in FY20
• Net loss after tax of $9.65 million, a 2% improvement on FY20
• Net new customers of 171 during the financial year, bringing the total to 801 in FY21

What happened in FY21 for Whispir

The market is responding positively to the Whispir share price on Wednesday after the company released its full-year results for FY21. Growth metrics across the board were solid, with most financial measures indicating an increase of 20% to 30% from the prior year.

According to the release, Whispir achieved total revenue of $47.7 million in FY21 – representing an increase of 22% from the previous year. Similarly, annualised recurring revenue grew by 28.5% to $53.6 million.

This growth was underpinned by the increased usage of existing customers. In addition, new customers — to the tune of 171 across Whispir’s operating regions — pushed the company’s top-line result higher.

Looking at the geographic breakdown of performance — Australia and New Zealand delivered growth of 29% to $39.7 million. Meanwhile, the company’s Asia and North America segments shrunk by 1% and 12% respectively.

Fortunately, the latter geographies are smaller in revenue terms to begin with. However, the challenging international growth environment may be an eyebrow-raiser for some investors.

According to Whispir, the challenging international environment reflects the impacts of COVID-19 and a pivot in its marketing strategy in North America during the year.

What did management say?

Commenting on the result, Whispir Chief Executive Officer Jeromy Wells said:

During FY21 the Whispir platform continued to scale with ARR increasing 28.5% and largely driven by increased usage amongst existing customers who are extracting more value from the platform, as well as new customer sign-ups across each region.

Additionally, regarding the company’s future opportunities, Mr Wells said:

We see significant opportunity for growth in the underserved SME and SMB segments identified in North America. We have successfully delivered new customer growth in the recent half as a result of adding more capability to execute against our strategic plan and our refined persona-led strategy.

What’s next for Whispir?

Looking ahead, Whispir intends to focus on increasing customer numbers, platform usage, and revenue across its operating regions. While the pandemic has produced a headwind in customer wins in Asia, it has also accelerated the digitisation of many businesses.

Additionally, the company provided guidance for FY22 for four important metrics:

• Year-end annual recurring revenue between $65.4 million and $70 million, representing growth of 22% to 31%
• Revenue between $57.2 million and $60.2 million, representing growth of 20% to 26%
• Operating EBITDA loss between $15.5 million and $13 million
• Research and development spend between $17.5 million and $18 million, representing 70% to 80% growth

Whispir share price snapshot

Unfortunately for shareholders, the Whispir share price has underperformed the S&P/ASX 200 Index (ASX: XJO) by a significant margin over the past year.

The benchmark index returned 21.8% as it recovered from the crash in March 2020. Meanwhile, shares in the communication platform have tumbled 50.6% during the past year.

Whispir currently holds a market capitalisation of $275.9 million.

The post Whispir (ASX:WSP) share price up 6% on solid FY21 result appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Whispir Ltd. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The IDP Education Ltd (ASX: IEL) share price is on the move on Wednesday morning following the release of its full year results.

In early trade, the language testing and student placement company’s shares were down as much as 9% to $25.24 before rebounding to be up 1%.

IDP Education share price higher after 36% profit decline

• Revenue down 10% (or 5% in constant currency) to $528.7 million
• English Language Testing revenue flat at $325.6 million
• Student Placement revenue down 25% to $143.3 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) down 330% to $145.2 million
• Adjusted net profit after tax dropped 36% to $45 million

What happened in FY 2021 for IDP Education?

For the 12 months ended 30 June, IDP Education reported a 10% reduction in revenue to $528.7 million and a 36% decline in adjusted net profit after tax to $45 million. This reflects ongoing operational disruptions caused by COVID-19 related government restrictions.

Positively, the company’s IELTS volumes still managed to grow 5% year on year despite COVID-19. This led to revenues in the English Language Testing business remaining flat on a reported basis and growing 8% in constant currency. This appears to be supporting the IDP Education share price today.

The main impacts were felt in the Student Placement business. Australian revenues fell 34% and Multi-Destination revenues in the business fell 17% on a reported basis and 11% in constant currency. Management notes that placements to Australia were hardest hit, falling 40% versus last year. International border closures meant student enrolments were largely limited to those willing to commence their studies online.

One positive was the company’s Digital Marketing business, which saw its revenue rise by 8% to $30 million. This was thanks to its institutional clients looking to IDP’s global digital platform for marketing and data insights.

At the end of the period, the company’s cash balance stood at $307 million. This was largely unchanged year on year.

What did management say?

IDP’s Chief Executive Officer and Managing Director, Andrew Barkla, was pleased with the company’s resilient performance.

He said: “Our diverse business model and long-term strategy allowed us to decisively navigate the disruptions of the past sixteen months. Importantly, our business took critical steps during the year to further strengthen our leadership position in preparing the industry for recovery.”

“IELTS demonstrated its through-the-cycle appeal as volumes rebounded despite ongoing restrictions across our global network,” he added.

What’s next for IDP Education?

Unsurprisingly, no guidance has been provided for FY 2022. However, Mr Barkla appears positive that the company is well-placed for the future after five years of transforming the business.

He said: “IDP took another significant step in FY21 to deliver on our vision of building a global platform and connected community. By bringing together human connections and digital innovation, we are guiding people on their journey to achieve lifelong learning and global career aspirations.”

“Over the past five years we have transformed our business and built a digital platform to complement our trusted human connections. With our people, customers and institutions now on one global platform, our stakeholders have begun to benefit from even stronger support at all stages of their journey.”

“Our recent acquisition of the British Council’s IELTS operations in India, along with investments in digital marketing and the IELTS technology platform have strategically positioned us to grow IELTS market share going forward,” the CEO said.

The IDP Education share price is up 35% in 2021.

The post IDP Education (ASX:IEL) share price higher despite 36% FY21 profit decline appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price has fallen more than 7% at the open after the group’s latest full-year results release.

Nine Entertainment share price slumps despite earnings surge

Some of the key takeaways from today’s result for the year ended 30 June 2021 (FY21) include:

• Revenue up 8% on the prior corresponding period (pcp) to $2,332 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) up 43% on pcp to $564.7 million
• Net profit after tax (NPAT) up 76% on pcp to $278 million
• Basic earnings per share (EPS) up 83% to 15.3 cents
• Full-year dividend up 3.5 cents to 10.5 cents per share

What happened in FY21 for Nine Entertainment?

Prior to today’s move, the Nine Entertainment share price had rocketed 69.3% higher in the last 12 months. It was a big year for the Aussie media group with the launch of Stan Sport and the completion of agreements with major digital platforms like Facebook (NASDAQ: FB) and Alphabet (ASX:GOOGL)’s Google.

Nine reported ad market growth amid a focus on brand exposure from advertisers. The Aussie media group also noted growth in revenue and profitability for its TV Combined segment and strong audience results across all platforms.

Significant revenue growth combined with prudent cost management saw Nine generate a strong pro forma operating cash flow of $346.2 million and reduce net leverage to 0.4 times during the year.

What did management say?

Nine Entertainment CEO Mike Sneesby had the following to say this morning:

After a year which began in the depths of COVID, we are pleased to report 43% growth in EBITDA for FY21. Whilst this growth was consistent across both halves, the drivers in each half were quite different, highlighting the strength of Nine’s mix of advertising and subscription-based assets.

While the past year has proven challenging, we have been able to establish the base to execute on our longer term strategy.

We are starting FY22 with strong momentum across all of our businesses — in terms of audiences and revenue, advertising and subscription. With the foundation of Nine’s unique assets, strong cash flows and a supportive Board, we have a clear vision for the future as Australia’s Media Company.

What’s next for Nine and its share price?

Nine’s metro free to air (FTA) ad revenue is expected to be up almost 20% in the FY22 year to date compared to the same quarter last year.

The Nine Entertainment share price is one to watch as the media group forecasts FY22 Publishing EBITDA of $30 million to $40 million. In its subscription business, Stan’s revenue run rate is more than $340 million with total FY22 costs expected at the lower end of the previous $70 million to $90 million guidance range.

The Nine Entertainment share price has climbed 19% higher in 2021 after accounting for Wednesday morning’s slump.

The post Nine Entertainment (ASX:NEC) share price slumps 7% despite earnings surge appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), and Facebook. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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