Qoria Limited - Financial Year End Report - 30 June 2024
QORIA LIMITED (QOR) Share Update August 2024 Tuesday 27th
Qoria Limited Reports Strong Revenue Growth Despite Continued Losses
Qoria Limited (ASX: QOR) has released its financial results for the year ending 30 June 2024, highlighting a significant increase in revenue but ongoing financial challenges.
Instant Summary:
- Revenue increased by 21% to $99.5 million.
- Net loss after tax improved by 37% to $54.8 million.
- Total comprehensive loss reduced by 33% to $52 million.
- Underlying EBITDA turned positive to $1.96 million from a negative $26.1 million.
- No dividends declared or recommended for the financial year.
Revenue and Profit Details
Qoria Limited reported a notable 21% increase in revenue from ordinary activities, reaching $99.5 million for the financial year ending 30 June 2024, compared to $81.9 million in the previous year. This growth was driven by strong organic expansion in both the Education and Consumer segments.
Despite the revenue growth, the company continues to face significant losses. The net loss after tax attributable to members improved by 37%, reducing from $86.7 million in 2023 to $54.8 million in 2024. Similarly, the total comprehensive loss for the period decreased by 33%, from $78 million to $52 million.
Operational Highlights
Qoria Limited achieved an Annual Recurring Revenue (ARR) of $116 million, reflecting a 21% increase from the previous year's $95.6 million. The company also reported record cash receipts each quarter, peaking at $30.1 million in the September quarter, with positive operating cash flows of $2.1 million before capitalizing development costs.
The Group focused on cost control, reducing cash costs in the second half of the year compared to the first half. Additionally, Qoria repaid convertible notes associated with the Qustodio acquisition and deferred consideration related to the Educator Impact acquisition, consolidating its debt position into long-term finance maturing in June 2028.
Debt and Financial Position
On 30 June 2023, Qoria entered into a $30.3 million debt facility with AshGrove Capital, which was later increased to $48.85 million to repay convertible notes. The company's net tangible assets per share decreased slightly from -8.38 cents in 2023 to -8.93 cents in 2024.
Qoria's cash and cash equivalents increased to $9.4 million from $6.6 million at the beginning of the year. The company also reported total assets of $297.4 million and total liabilities of $159.5 million, resulting in net assets of $138 million.
The significant revenue growth is a positive indicator of Qoria's market expansion and product acceptance. However, the continued losses and negative net tangible assets may concern investors. The company's efforts to manage costs and consolidate debt are steps toward financial stability, but the impact on stock price will depend on future profitability and cash flow improvements.
Investor Reaction:
Analysts are likely to have mixed reactions. The revenue growth and positive underlying EBITDA are encouraging, but the ongoing losses and financial instability may raise concerns. Investors will be watching closely for signs of sustained profitability and effective cost management.
Conclusion:
Investors should keep an eye on Qoria Limited's future financial reports and strategic initiatives aimed at achieving profitability. The company's ability to manage costs and leverage its revenue growth will be crucial for long-term success.