WTC +18.36%: A big rally today on a largely inline FY24 result, though earnings guidance for FY25 was ahead of expectations, while they talked up new product launches which is likely to drive an acceleration in growth;
- FY24 Revenue of $1.04 billion, +28% y/y, vs consensus estimate of $1.06 billion, though there was some scepticism around them getting to this, hence the meet was probably a beat.
- Ebitda $495.6 million, +28% y/y, and slightly ahead of $491.4 million consensus.
- Importantly, recurring revenue of 97% vs. 96% y/y
FY25 guidance is what drove the stock today, though we think the move it too big for what was delivered – still, hard to question to quality of the result and momentum that is clearly building for FY25, particularly in the 2H with a bunch of new product releases.
- Guiding to revenue growth of 25-30%, equating to $1.30 – 1.35 billion, inline with current consensus of $1.32 billion
- Guiding to Ebitda $660 -700 million, around 4% ahead of consensus of $652.2 million, implying growth of 33-41%
- Inline revenue, better earnings, the widget is working!
MM is neutral WTC, though concede momentum is very strong
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