Ansarada provided their FY21 Earnings Report to the market on the Monday 30th August 2021, the group reported exceptional revenue and EPS growth up 1% and 101% respectively. So we take a look into the Ansarada Earnings Report FY21.
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Ansarada FY21 Earnings Report
Headline results from the Ansarada Earnings Report for FY21 are as follows:
- Gross margin increased 4% to 96% YoY
- $18million in 2H21 revenue which incrased 16% compared to 1H21
- 155% increase in adjusted free cash flow to $2.0million
- Adjusted EBITDA up 64% to $5.9million
- Deferred revenue up 75% to $18million compared to prior comparable period.
- Active customer growth seemed to increase significantly YoY.
- Cash on balance sheet increased to $22million over a 100% improvement.
The group also seem very bullish on the new FY going as far as mentioning that Encouragingly, we have continued the strong momentum of Q4 FY21 into the new financial year.
The group continued their transition from the legacy model of transactional revenue accross to the SaaS model in the year, this is evident by the -21% reduction in revenues generated by the Transactional and 8% increase in SaaS revenues. It is unclear if the Transacational customers transitioned to the SaaS model.
In regards to the deferred $13.9 million of deferred revenue, $12.9 million will be recognised in FY22 and $1.0 million will be recognised between FY23 and FY26. This means that ANDis already over 1/3 of the way to acheiving their FY22 result over the current result.
Subscription revenue comprises recurring annual and monthly fees from customers who subscribe to Ansarada’s cloud-based SaaS platform. These fees can either be invoiced upfront, over the subscription period or on a monthly basis, accounting for deferred revenues. Transactional revenue fees represent the amount billed to the customers based on the specific level of virtual data room usage (e.g. amount of data uploaded or pages occupied). Consideration from usage fees is recognised as revenue on a straightline basis in the Statement of Profit or Loss and Other Comprehensive Income over the estimated life of a deal room.
Ansarada FY21 Operating Result
The group mentioned that Revenue for the full year was impacted by COVID-19 specifically during 1HFY21, which reduced the volume of transactions and the number of new customers. As mentioned above, Ansarada achieved record results in 2HFY21 with 16% increase in recognised revenue compared to 1HFY21.
Should the current macro and COVID conditions around the globe remain relatively stable we should potentially see this accelleration which was experienced in 2HY21 continue into the new year.
Revenue by geograpic region was a slight let down in our opinion, we would have liked to have seen the company further their traction in the North American, Asian and European markets. This will be a key indicator that we will keep an eye on in future reports. However there was a slight improvement between ANZ and Rest of World revenue split of 1% in the year.
The group also delivered an improvement in Adjusted EBITDA of 64% from $3.5million to $5.88million in the year, this equated to an adjusted free cash flow of just shy of $2million in the year.
Sales and marketing costs remained inline with the FY20 report staying around 36% of operating revenue. The group has flagged a possible improvement on this figure due to the roll out of their E-Commerce strategy.
Ansarada Shares Price
The share price of Ansarada is up 7.55% this year prior to the earnings report being released to the market. The company trades on a market capitalisation of $138.9million and a share price of $1.71 per share.
Upon releasing their earnings report to the market Ansarada Shares were down 2.56% to trade at $1.71 per share.
This is at the higher end of the group 52-week range is from $0.97 – $1.97 per share. We wouldn’t be surprised with such an exceptional result to see this go onto all-time highs.
Ansarada Share Price Facts
|Ansarada Current Share Price||$1.71 per share|
|52 Week Range||$0.97 – 1.79|
Ansarada FY21 Future Ambitions
In the earnings report the company outline their inititive for FY22, these include investments in their product, customers and operations.
- Inclusion of Additional AI document features into the platform
- Additional soltions for risk and compliance
- Extending current workflows for increased automation
- Expansion of product to mult feature and and multi product for customers
- Scaling of the digital acquisition channel
Ansarada FY21 Earnings Report – Prophets Take
We first put out a special report on Ansarada Shares back in July 2021 when the share price was around $1.15 per share. Prophet has been buying shares around this level and has accumulated a decent sized holding in our portfolio.
Ansarada has a massive Gross Profit Margin, historically around ~90%, EBIDTA also seems to be increasing, with revenue also bouncing back from the COVID19 Pandemic and the switch to subscription revenue models. The company is growing customers at between 5% and 8% and has no Debt on its balance sheet.
In our opinion, the company has NearMaps like gross profit, however from a much lower cost basis. The Management team also mention in presentations that they are looking to grow exponentially through technology rather than putting people in sales positions. We like this approach as it will help to keep staffing costs low.
The group has in our opinion delivered an exceptional FY21 Earnings Report and we are expecting this to be a catalyst for shares to continue to move upwards. If you are interested in our Andasara Special Report, we’ve linked it again.
In our special report, we expected the company to produce between $4-$6 million in EBITDA for the FY21 and the company has delivered on that by delivering an adjusted EBITDA result of $5.9million