SDR –11.77%: Hit today after revenue growth trailed expectations for the half, which is never good for a growth stock at this stage of its life, though we don’t think the thesis is broken.
- 1H25 Revenue of $104.5 million, up +14% y/y, but ~5% below consensus of $110.3 million
- Net loss $13.9 million was expected
- Annualized recurring revenue of $216.2 million, +18% y/y
The initial sell-off was aggressive and clearly overdone given the size of the revenue miss, while they also reaffirmed their medium-term targets for 30% organic annual revenue growth in the medium term. They still expect to be underlying EBITDA and underlying free cash flow positive in FY25.
MM remains bullish SDR ~$5.70
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