- ALU experiences revenue growth, especially in H2-21.
- Recurring revenue is attributable majorly to cloud platforms.
- During the FY21, some investment and divestment in business have taken place.
ASX-listed multinational software company from the USA, Altium Limited (ASX:ALU), has released its audited annual report for 30 June 2021. ALU is a giant player in the computer software business.
ALU achieved full-year revenue of US$191.1 million, including a 6% growth in continuing revenue. In the second half, revenue increased by 16%. Earnings before interest, tax, depreciation and amortization (EBITDA) stood at US$60 million for the continuing business, at a 33% margin. ALU achieved an underlying EBITDA margin of 36.1% after significant investment in product development and cloud infrastructure.
ALU’s annual recurring revenue (ARR) grew by a record 29% from the transition of business model to term-based and cloud model. The software group is on track to achieve 95% recurring revenue from developing countries other than China.
The Octopart business added new enterprise customers, including big names like SpaceX, Tesla, Amazon, and Arduino. In addition, the rate of change from perpetual license to term-based increased during the year.
The Company stated it is pretty positive for its future recurring revenue in the US and EMEA, where the move is most prevalent. ALU’s subscription business was up 7% in twelve months.
ALU sold its TASKING business at US$110 million for expansion of the Altium 365 platform. During the second half of fiscal 2021, it also invested US$3 million in Macrofab, Inc., a cloud platform for electronics manufacturing.
ALU declared a partially franked final dividend of 21 cents per share for FY21. The company will pay the dividend on 28 September 2021
In its future, ALU desires to achieve 100,000 subscribers giving US$500 million in revenue by 2025.
Meanwhile, ALU shares were spotted opening their trade a tad higher at AU$31.820 per share at 10:25 AM AEST.
ALU is emerging its cloud-based business model. It is focused as of now on increasing its recurring revenue, especially from developing countries.