SaaS, PDF, and eSignature solutions company Nitro Software...

SaaS, PDF, and eSignature solutions company Nitro Software [ASX:NTO] today provided its audited financial results for the full fiscal year ending 31 December 2022. The company revealed US$58.8 million in annual recurring revenue (ARR) above mid-guidance range.

Revenue was up 31%, with a total of US$66.8 million. The group also posted a record in customer sales of US$71.7 million — an increase of 39% on the same time last year.

NTO’s share price was trading for $2.18 at the time of writing, and the stock value has increased by 50% over the past 12 months.

Nitro is also up 57% on its sector average and 47% above the S&P 200 average, with the stock having rallied strongly since late last year:

Source: tradingview.com

Revenue climbs for Nitro Software, full 2022 audited results confirmed

Nitro posted revenue of US$66.8 million for FY2022, representing a 31% increase over the previous period.

ARR was boosted by 27% to a total of US$58.8 million, hitting above the mid-point of the group’s predicted guidance range, which was driven by expansion sales with existing customers.

Major new businesses signed renewal and expansion contracts in 2022, including multinational blue-chip customers Zurich Insurance, General Electric, Nestle, NatWest Group, Westpac, and Bank of Ireland.

Subscription revenues soared by 50%, representing 83% of annual business sales revenue and boosted by a Gross Retention Rate (GRR) of 93%.

The group posted record cash sales of US$71.7 million, an increase of 39%, and reported management reached its cost savings target in the second half (US$5 million).

However, Nitro reported operating EBITDA had resulted in a loss of US$11.0 million and took US$35.8 million in statutory losses.

As a result, the company chose not to pay out a dividend for the 2022 financial year.

Sam Chandler, Nitro's Co-Founder and Chief Executive Officer, stated:

‘Against the backdrop of ongoing takeover activity and a challenging macroeconomic climate, these results are a testament to both the strength of our business model and the focus and commitment of our team.

‘FY2022 was a pivotal year for Nitro. With the integration of Connective essentially complete, our restructured Go-to-Market (GTM) team is now focused on pursuing significant cross-sell and upsell opportunities across all market segments. We also delivered on our stated commitment to achieve cost savings of US$5.0 million against our internal plan.’

The software company had cash-in-bank of US$28 million by the end of December, with no debt.

It remains confident in market opportunities in the years ahead, with FY2022 having been a big year of strategic investments.

Pending the resolution for Potentia’s $2.17–2.25 bid for NTO rights, and if the group is still listed on the ASX by April, the group will release its FY2023 guidance then.

Regards,

Mahlia Stewart,

For The Daily Reckoning

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