Despite a 20% sales increase, the stock price of RPMGlobal Holdings Ltd. still fell

Following the announcement of its FY22 results, RUL completed the day 4.78% down at $1.495.
CENTRAL, Hong Kong - Sept. 12, 2022 - PRLog -- Today's trading volume was 1.315 million shares, which was over 5 times more than the 4-week average, indicating that investors liquidated holdings in large numbers throughout the session.

The following are key takeaways from the company's results:
  • Year-on-year revenue increased by 20% to $84.1 million.
  • Advisory revenue increased by $9.1 million over the previous fiscal year.
  • Over the last year, income from software consulting climbed by $1.3 million.
  • Net operational revenue increased 18% over the previous year.
  • EBITDA of $4.5 million in FY22, down from $5.5 million in FY21.
  • Loss after tax of $4.1 million, compared to a loss of $5.1 million the previous year

Revenue growth was high across all operational segments for the organization. Net operational revenue increased by 18% year on year.

This amounted to a net loss after tax of $4.1 million, which was $1.4 million less than the previous year's loss of $5.5 million. The firm also recorded a $1.1 million loss from closure and one-time M&A expenditures related to the Russia and Ukraine war.

RUL also has $95.5 million in pre-contracted, non-cancellable software subscription income as of 30 June 2022. This is an increase of $29.8 million from $65.7 million this time last year.

The firm anticipates total revenue of $101 million in FY23, with EBITDA of $14.2 million.

"RPM will achieve a new software sales record for the firm for the fourth year in a row," RPMGlobal declared.

This is supported by a flattening of software spending over the next year. The business completed:

"With the completion of our shift from perpetual to subscription license sales, the $95.5 million in pre contracted software subscriptions will now begin to flow through into the company's financials."

RUL's share price has dropped 22% in the last year.

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