Annual Report FY21

The market hasn't reacted kindly to the RUL annual report (Currently -10%) I suspect due to the significant run up over the past 5 months into reporting season (=75%).

Highlights

Net revenue of $63.2m for FY2021 down $3.8m (6%) from FY2020. However $43.9m of software sold during the year was not recognised in the FY2021 results (I'm unsure as to why this is the case)

$47.7m in Total Contracted value. Subscription software revenue up $13.2m (38%)

ARR from software subscriptions at the beginning of FY2022 is $21.9m up $9.2m from prior year.

Spent $13.2m on internal investment in software development

Operating expenses reduced $4.6m (9%)

$44.6m cash on the balance sheet

My Comments

Good to see that the transition to the SAAS model is continuing to play out. I think the valuation got a little ahead of itself the past 6months and the market is reacting accordingly. RPM global is one I'd like to add to my portfolio given the right price as they have some top of class clients. I like this transition to SAAS model.