SYDNEY, AUSTRALIA: Objective Corporation, a leading provider of software solutions for the public sector, has announced its financial results for the first half of FY2024, showing continued growth in annual recurring revenue (ARR), profitability and customer value.

The company’s ARR increased by 15% year-on-year to $82.6 million, driven by strong demand for its cloud-based content solutions, planning and building solutions, and regtech solutions. The company also achieved a milestone of 100% subscription revenue, reflecting its successful transition to a cloud-first, subscription-only model.

The company’s net profit after tax (NPAT) grew by 18% year-on-year to $9.8 million, while its earnings before interest, tax, depreciation and amortisation (EBITDA) margin expanded by 3 percentage points to 24%. The company attributed its improved profitability to its focus on process excellence, customer success and innovation.

The company’s CEO, Tony Walls, said that the company had overcome the headwinds it faced in FY2023 and was well-positioned to deliver the full year result that shareholders expected. He said that the company had invested heavily in product innovation, customer relationships and security, and had built strong momentum across all its business lines.

He also said that the company had a long-term vision of building the digital infrastructure for government that would remain relevant for decades to come. He said that the company had explored several acquisition opportunities in the past 12 months, but none of them met its criteria for strategic alignment, return on capital and management capacity. He said that the company was confident that investing in organic growth would have a greater return on capital and margin expansion in the near term, while still pursuing M&A opportunities in the future.

The company declared an interim dividend of 5 cents per share, up from 4.5 cents per share in the previous corresponding period.

Technology One reports record results and optimistic outlook