ELMO Software Limited (‘ELMO’ or ‘Group’) today announced results for the full year ending 30 June 2021, reporting strong growth in annualised recurring revenue (“ARR”), revenue, cash receipts and customers. In addition, the Group generated a positive EBITDA.Group ARR grew 52.1% to a record $83.8 million. Group organic ARR growth increased to 26.0% which is up from 17.2% in FY20.
Revenue increased 38.1% to $69.1 million. Over 96% of revenue was subscription based, which is recurrent in nature. Cash receipts grew 38.8% to $79.8 million. EBITDA grew to $0.4 million, up $3.3 million from FY20.
ELMO’s mid-market business continued to grow strongly, to 3,114 customers, up 85.1% pcp. Mid- market ARR grew to $74.7 million, up 35.7% pcp. Mid-market revenue grew to $63.6 million, up 27.1% pcp. The mid-market gross profit margin increased to 86.4%, up 1.0% pcp.
The small business solution, Breathe, grew rapidly with annualised ARR growth of 51.8%. The Breathe customer base grew to 9,069 at 30 June 2021. Gross profit margin remained high, at 89.5%.
ELMO remains well capitalised with $81.9 million cash on hand.
ELMO Software CEO and Co-Founder Danny Lessem said: “ELMO’s growth journey continued in FY21 as we delivered on our growth strategy.
“We saw strong growth returning throughout 2H FY21 from the mid-market segment and growth accelerating in the Breathe (small business) segment. In addition, our cost ratios reduced as we saw some operating leverage come through and were also able to generate a positive EBITDA.
“In FY21, ELMO completed two significant acquisitions. The first was Breathe, a rapidly growing self- service small business HR solution. The second was Webexpenses, a market leading expense management solution for the mid-market in the UK.
“We have completed integration of the Webexpenses solution, and it is being successfully cross-sold in the ANZ region. We have also leveraged Webexpenses operational footprint in the UK to launch ELMO’s mid-market HR solution there.
“Breathe, the small business segment posted exceptional growth of 51.8%. In 2H FY21, we added modules to the Breathe suite in the UK and it’s pleasing to see strong uptake. We recently launched the Breathe solution in ANZ and expect to ramp up activities in the region during FY22.
“Returning business confidence and the increase in remote based working is driving the adoption of cloud-based business tools, including HR technology. FY22 is shaping up to be a good year for ELMO, across both mid-market and small business segments.
“We anticipate strong growth in FY22 and expect to surpass $100 million in ARR, an exciting milestone.”
Outlook
FY22 Group Guidance:
| A$m |
Guidance |
| Anualised Recurring Revenue |
105.0 – 111.0 |
| Revenue |
90.5 – 95.5 |
| EBITDA |
1.0 – 6.0 |
Results Webcast
ELMO management will host a webcast to discuss the result at 9.30am (Sydney AEDT), 9 August 2021.
Webcast link: https://bit.ly/
Participants are encouraged to pre-register for the webcast. A replay of the webcast will be available shortly after the event on the ELMO investor website:
https://investors.
