SaaS, PDF, and eSignature solutions company Nitro Software [ASX:NTO] today provided its audited financial results for the full fiscal year ending 31 December 2022. The company revealed US$58.8 million in annual recurring revenue (ARR) above mid-guidance range.
Revenue was up 31%, with a total of US$66.8 million. The group also posted a record in customer sales of US$71.7 million — an increase of 39% on the same time last year.
NTO’s share price was trading for $2.18 at the time of writing, and the stock value has increased by 50% over the past 12 months.
Nitro is also up 57% on its sector average and 47% above the S&P 200 average, with the stock having rallied strongly since late last year:
Revenue climbs for Nitro Software, full 2022 audited results confirmed
Nitro posted revenue of US$66.8 million for FY2022, representing a 31% increase over the previous period.
ARR was boosted by 27% to a total of US$58.8 million, hitting above the mid-point of the group’s predicted guidance range, which was driven by expansion sales with existing customers.
Major new businesses signed renewal and expansion contracts in 2022, including multinational blue-chip customers Zurich Insurance, General Electric, Nestle, NatWest Group, Westpac, and Bank of Ireland.
Subscription revenues soared by 50%, representing 83% of annual business sales revenue and boosted by a Gross Retention Rate (GRR) of 93%.
The group posted record cash sales of US$71.7 million, an increase of 39%, and reported management reached its cost savings target in the second half (US$5 million).
However, Nitro reported operating EBITDA had resulted in a loss of US$11.0 million and took US$35.8 million in statutory losses.
As a result, the company chose not to pay out a dividend for the 2022 financial year.
Sam Chandler, Nitro’s Co-Founder and Chief Executive Officer, stated:
‘Against the backdrop of ongoing takeover activity and a challenging macroeconomic climate, these results are a testament to both the strength of our business model and the focus and commitment of our team.
‘FY2022 was a pivotal year for Nitro. With the integration of Connective essentially complete, our restructured Go-to-Market (GTM) team is now focused on pursuing significant cross-sell and upsell opportunities across all market segments. We also delivered on our stated commitment to achieve cost savings of US$5.0 million against our internal plan.’
The software company had cash-in-bank of US$28 million by the end of December, with no debt.
It remains confident in market opportunities in the years ahead, with FY2022 having been a big year of strategic investments.
Pending the resolution for Potentia’s $2.17–2.25 bid for NTO rights, and if the group is still listed on the ASX by April, the group will release its FY2023 guidance then.
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