Getbusy experienced a significant share price drop after releasing its half-year performance report, leading to concerns among investors.
- The UK-based software provider, listed on AIM, saw shares fall by nearly 11% due to underwhelming financial results.
- Annual recurring revenue showed limited growth, rising less than £1 million to reach £21 million in the first half of 2024.
- The company faced a decrease in net cash levels and a slight decline in user numbers, attributed to legacy business churn.
- Despite challenges, Getbusy expressed confidence in achieving long-term strategic goals amid growing pressure from exchange rates.
Getbusy, an AIM-listed company specializing in software for professional and financial services, saw a nearly 11% drop in its share price following the release of its mid-year financial results. This decline has raised concerns among investors about the company’s current performance and future prospects.
The company reported modest progress in annual recurring revenue (ARR), which grew by less than £1 million during the first half of 2024, bringing the total to £21 million. This growth, however, fell short of expectations and has been a point of concern.
Getbusy also noted a significant decline in its net cash position from the previous year, dropping to £0.2 million from £1.7 million. The decrease was partly due to a delayed receipt of UK R&D tax credits, impacting overall cash flow.
Moreover, the company experienced a slight reduction in its user base, which it attributed to churn in its legacy business. However, Getbusy is focusing on attracting higher-value customers, indicating a strategic pivot aimed at enhancing long-term growth.
CEO Daniel Rabie acknowledged the challenges, stating, “We have made encouraging strategic progress in H1 2024 to keep the business on track to achieve our value creation and realisation objectives in the medium- and long-term.” Despite these assertions, the company’s performance faced additional headwinds from unfavorable exchange rate fluctuations, particularly with the US dollar losing strength.
Despite the challenges, Getbusy maintains its full-year revenue expectations, underscoring its confidence in the strategic adjustments being made. The firm remains determined to overcome these hurdles and return to a path of stronger growth and increased value in the coming years.
Getbusy remains optimistic about overcoming current challenges and achieving its long-term growth objectives.
