Earlier on Tuesday, owner of leading intellectual property (IP) businesses across Australia, New Zealand and Asia, QANTM Intellectual Property [ASX:QIP], decided to tackle some figures at its Investor Briefing Day Presentation.
The information and ideas protection group sought to address its market share, key technology and simplification milestones and strategies, and its medium-term EBITDA margin goal.
QIP’s stock price had dipped slightly in the early afternoon by half a percent, trading for around 85 cents a share.
In the past month, the IP stock has climbed more than 6%. Yet in the past 12-month period, it has fallen by more than 19%.
Compared with the wider market, its down by 21.5% and down in its sector by 26%:
Source: TradingView
QANTM’s 2023 Investor Briefing Day Presentation
Today, the IP business gave its investor presentation as led by the group’s CEO and Managing Director, Craig Dower, and the Group Executive Team at QANTM’s inaugural Investor Briefing Day.
The group, which deals in patents, trademarks, designs, legal and litigation services, platform-based services and software-based attorney tools, sought to talk its investors though its progress over the past 12-24 months and what it plans to achieve in the near and medium term.
QANTM’s AU patent market applications for nine months to 31 Mar 2023 were up by 4.6% versus the same time in FY22 (representing 6.2% of the group’s market in 2023), compared with 14.6% in FY22.
DCC and Sortify remained the top two agents in Australia for trademark applications as the whole division increased by 1.4%.
For the group’s Asia counterparts over the same nine-month period, these increased by 4.6% and 21.1% for Q3FY23 compared to the same time last year.
The Asian patent applications represented 16.1% of the group’s overall totals for the period.
Source: QIP
The group addressed its growth drivers over the past year. It highlighted its target for growth into emerging technologies and markets with 33% year on year growth to date.
The group expects to gain more revenue growth in the near term, particularly on the back of its current trading momentum and strong market share in Australia and Asia.
QANTM says it will continue to invest in people and strategies. It also anticipates some continued margin improvement as a result of cost management and strategic initiatives already in place.
In terms of cash conversation in 2H2023, QANTM believes there will be some normalisation off the back of timing of receipts and one-off costs.
QIP hopes to continue delivering on modernising milestones, with several targeted for the year. It will also focus on its pipeline targeted M&A opportunities and strategic alliances.
In its HY2023 results as presented in February, QANTM reported strong revenue growth driven by a 6.4% rise in service charges.
Total revenue increased by 9.5%, and underlying EBITDA was up by 7.6%, increasing the EBITDA margin 26.5%.
The group had declared an interim dividend of 2.8 cents a share, fully franked.
For the group’s EBITDA margin in the medium term, QANTM says it expects to target ‘EBITDA margins is low 30’s’. However, no further details were offered on that score.
Source: QIP
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For Money Morning
