Shares of productivity software provider Getbusy fell by nearly 11% following disappointing half-year results.
- Annual recurring revenue for Getbusy saw a modest increase of less than £1 million, totalling £21 million by June 2024.
- The company’s net cash reserves significantly decreased to £0.2 million from £1.7 million the previous year.
- Despite a rise in adjusted EBITDA, Getbusy experienced a slight decline in paying users, attributing it to legacy business churn.
- The company aims to focus on higher value customers and anticipates future growth amidst current exchange rate pressures.
Shares in Getbusy, a provider of productivity software, experienced a sharp decline, dropping nearly 11% after the company released lacklustre half-year performance results. This response reflects investor dissatisfaction with the company’s recent financial metrics.
During the first six months of 2024, Getbusy’s annual recurring revenue increased by less than £1 million, bringing the total to £21 million. This slow growth has raised concerns among analysts and investors alike, who were expecting a more robust financial performance.
Adding to the financial strain, Getbusy reported a significant decrease in its net cash position, which fell to £0.2 million from £1.7 million in the past year. The company attributed this downturn to delays in receiving a UK R&D tax credit.
On a positive note, the firm’s adjusted earnings before interest, tax, depreciation, and amortisation improved to £0.4 million, doubling from £0.2 million in the same period last year. Despite this progress, the number of paying users slightly declined, which Getbusy explained was due to churn in its legacy business as it shifts focus towards more lucrative customer segments.
Getbusy remains committed to achieving its strategic goals, with Chief Executive Daniel Rabie expressing confidence in the company’s long-term value creation potential. “Whilst ARR growth over H1 has been more modest than in previous periods,” Rabie stated, “we are confident we have the foundations in place for a return to stronger growth and significant value creation over the next few years.” However, the firm has issued a warning regarding potential exchange rate pressures due to a weaker US dollar.
Getbusy remains optimistic about long-term growth, focusing on strategic objectives despite current financial challenges and market pressures.
