- Software as a Service provider to education, workforce, and government entities listed on the ASX in 2019.
- Since listing the share price has risen more than 100%.
- Delayed revenue from enterprise contracts sent investors heading for the exit doors.
The company serves enterprise level customers in education and workforce pathways, workforce solutions, and government and justice. In the last four fiscal years ReadyTech Holdings has increased revenue and posted a profit.
ReadyTech Holdings Financial Performance
Source: ASX
Since listing the RDY share price has risen 109%, but disappointed investors drove the share price down from an opening price of $3.50 on 27 February, the day of the Half Year 2024 Results announcement, to $3.26 at the close, with an intraday low of $3.05 along the way.
The actual results were uniformly positive, with 15.5% reduction in total expenses, a 14.2% increase in total revenue, and a 5.2% rise in underlying net profit after tax. The company also reported 11 new enterprise contracts during the period, but it was “a number of the company’s high conviction contracts shifting to FY 2025” that panicked investors. Based on the shift, management lowered its expectations for the second half of 2024.
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Source: ASX
An analyst at Medallion Financial Group has a BUY recommendation on ReadyTech Holdings shares, citing “robust growth, recurring revenues, and a reasonable valuation,” concluding at recent price levels, RDY offers value.
Marketscreener.com has an analyst consensus BUY recommendation on RDY shares, with four of the six analysts reporting at BUY and two at OUTPERFORM.
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