Pulsar reports first-half rise in annual recurring revenue

8th Jul 2024 15:02

(Sharecast News) - Marketing and communications software-as-a-service specialist Pulsar Group reported a £2.2m increase in annual recurring revenue in its interim results on Monday, demonstrating a marked improvement in growth momentum compared to the £1.3m growth in the first half of 2023.

The AIM-traded firm said the accelerated growth was contributed by all regions, including Asia-Pacific, EMEA, and North America.

Total revenue for the period was £30.8m, slightly up from £30.4m in the first half of 2023, with 96% of the revenue being recurring, compared to 95% in the prior year.

The group reported adjusted EBITDA of £3.1m - a significant year-on-year increase from £2m.

Looking ahead, the board said it anticipated strong cash generation in the second half of the financial year, bolstered by positive momentum across all regions.

Pulsar Group said it was trading in line with the board's full-year expectations, reflecting confidence in its strategic direction and financial health.

"As governments, corporations, brands, and individuals respond to today's complex communication landscape, the rising demand for audience intelligence is evident," said non-executive chairman Christopher Satterthwaite.

"Pulsar Group's cutting-edge audience intelligence solution continues to drive innovation in marketing and communications.

"Our technology provides the critical insights and engagement strategies necessary for organisations to navigate these challenges, which have only been intensified by the increasing use of artificial intelligence in media and social channels."

Satterthwaite said the board was pleased with the progress made during the first half of the year, including enhancements to its product offerings and a significant acceleration in annual recurring revenue growth alongside improved adjusted EBITDA margins, despite the ongoing challenges of a difficult macro-economic environment.

"The group remains focussed on enhancing profitability and cash generation, with a number of cost optimisation initiatives delivered to date and continued emphasis to be placed on this during the remainder of the financial year.

"Overall, the board remains confident in Pulsar Group's outlook for the second half of the year and beyond."

At 1250 BST, shares in Pulsar Group were down 5.81% at 81p.

Reporting by Josh White for Sharecast.com.