Objective Corporation (ASX:OCL) provides the following trading update for the first half of financial year 2021 (1HY2021), based on unaudited management accounts as at December 31, 2020.

The expected headline results for 1HY2021 are a revenue increase of 40% to $46.5m (1HY2020: $33.3m) with an EBITDA increase of 74% to $11.8m (1HY2020: $6.8m).

Annual Recurring Revenue (ARR) at 31 December 2020 was $70.1m, representing an increase of 30% over 31 December 2019 ($54.1m). Perpetual right to use (upfront licence) fees continued to decline as a percentage of revenue, representing only 3.6% of total revenues in 1HY2021 (7.4% in 1HY2020).

Cash balance at 31 December 2020 was $27.7m. During 1HY2021, Objective paid $18.4m as consideration for the acquisition of Itree Pty Limited and fully franked dividends of $6.6m.