I think the software sales have gone to plan, but without looking at their explanation, you would think there has either been a blow out in expenses, or they have had to cut pricing, or Advisory has been smacked. They have stated the cause as "The lower than forecasted profitability is due to reduced perpetual license sales and the timing of subscription licenses signed during the second half of FY2024. "
Guided actual EBITDA of 4.2 for H2 is the lowest HY in a while, by my sums.
So have they done a bit of a road runner on expenses, spending and hiring to bring in new business that has not eventuated?
Maybe the incentives are not aligned with profitability but with sales instead, and that could be a problem.
RUL Price at posting:
$2.32 Sentiment: Sell Disclosure: Held
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