Spirit Technology Solutions Projects Robust Growth for FY25
SPIRIT TECHNOLOGY SOLUTIONS LTD (ST1) Share Update August 2024 Sunday 4th
Spirit Technology Solutions Announces Strong FY25 Guidance
Spirit Technology Solutions Limited (ASX:ST1) has released its guidance for FY25, projecting substantial growth in both revenue and underlying EBITDA (uEBITDA).
Instant Summary:
- Expected FY25 revenue: $150m - $160m.
- Projected FY25 uEBITDA: $9.5m - $10.5m.
- More than 20% revenue growth compared to FY24.
- Record sales quarter in Q4 FY24 with $42 million in contract wins and renewals.
- Total annual recurring revenue exceeds $70 million.
FY25 Revenue and uEBITDA Projections
Spirit Technology Solutions Limited (ASX:ST1), a leading provider of digital transformation and secure work environments, has announced its financial guidance for the fiscal year 2025 (FY25). The company expects to achieve revenue in the range of $150 million to $160 million and underlying EBITDA (uEBITDA) between $9.5 million and $10.5 million.
This marks a significant milestone for Spirit, representing more than 20% growth on FY24 revenue, which includes acquisitions. The company attributes this optimistic outlook to a strong finish in FY24 and a growing pipeline of business opportunities.
FY24 Performance and Strategic Focus
Spirit reported unaudited FY24 Group revenue exceeding $125 million and unaudited Group uEBITDA surpassing $1.6 million. The company achieved a record sales quarter in Q4 FY24, securing $42 million in contract wins and renewals. This success has propelled Spirit’s total annual recurring revenue to over $70 million.
Spirit's strategy involves selling combined Cyber Security, Managed Services, and Collaboration platforms, which the company believes will support continued growth in FY25 and beyond. With a refined focus and an optimized structure now in place, Spirit is confident in its ability to improve profitability.
Upcoming FY24 Results Release
Spirit Technology Solutions plans to release its audited financial results for FY24 on Friday, 23 August 2024. On the same day, Managing Director Julian Challingsworth and CFO Paul Miller will host an investor briefing at 1.00pm (AEST). Investors can register for the webinar through the provided link to receive a confirmation email with further details.
The strong guidance for FY25 is likely to positively impact Spirit Technology Solutions' stock price. The projected revenue and uEBITDA growth reflect the company's successful strategy and operational improvements. Investors may view this announcement as a sign of Spirit's robust market position and growth potential.
Investor Reaction:
Analysts are expected to react favorably to Spirit's FY25 guidance, given the substantial projected growth in revenue and uEBITDA. The record sales quarter in Q4 FY24 and the significant increase in annual recurring revenue are likely to bolster investor confidence.
Conclusion:
Investors should keep an eye on Spirit Technology Solutions' upcoming FY24 results release on 23 August 2024. The company's strategic initiatives and strong financial outlook make it a compelling option for those looking to invest in the digital transformation and cyber security sectors. Stay informed and consider the potential long-term benefits of including Spirit in your investment portfolio.