Getbusy, a provider of productivity software, experienced a notable share price decline, down nearly 11% on Tuesday morning.
- The company’s recent half-year results fell below expectations, leading to the observed decrease in share price.
- Annual Recurring Revenue (ARR) saw a marginal growth of under £1m in the first half of 2024, totalling £21m.
- Net cash reserves plummeted significantly from £1.7m last year to just £0.2m this year.
- Despite these challenges, Getbusy remains optimistic about future value creation and growth potential.
In a recent turn of events, Getbusy, an AIM-listed company providing software solutions for professional and financial services, witnessed a substantial drop in share value by almost 11% as reported on Tuesday morning. This decline followed a series of underwhelming half-year performance metrics that disappointed investors.
The company disclosed that its Annual Recurring Revenue (ARR) increased by less than £1 million, settling at £21 million for the first half of 2024. This relatively modest growth in ARR was one of the critical factors contributing to the fall in share price, suggesting that expectations were set considerably higher than outcomes delivered.
Furthermore, Getbusy’s financial health took a considerable hit as net cash levels fell sharply to £0.2 million, down from £1.7 million in the previous year. The company attributed this decline to a delayed receipt of UK Research and Development tax credits, impacting its cash flow stability.
Notably, Getbusy managed to report an improvement in adjusted figures, with EBITDA rising to £0.4 million from £0.2 million during the same period in 2023. In addition, the adjusted loss reduced from £0.6 million last year to £0.3 million this year, indicating some level of progress in financial management despite the challenges faced.
In his statement, Daniel Rabie, CEO of Getbusy, expressed confidence in the company’s ability to achieve its long-term strategic goals. He acknowledged the slower ARR growth but emphasised the solid foundational work laid down for stronger future performance and significant value realisation in the upcoming years.
Despite maintaining its full-year revenue predictions, the company cautioned about potential adverse impacts from exchange rate fluctuations, primarily due to a weaker US dollar, which could further influence its financial results. The firm also communicated a slight reduction in the number of paying users, attributing this to its strategic transition towards targeting higher-value customers and a natural churn in its legacy business.
Getbusy’s strategic focus aims to overcome current financial hurdles and optimise for future growth and value.
