hSenid Biz’s Peoples HR Cloud drives 1Q FY25 success, Exit ARR hits $3.5 mn
hSenid Business Solutions (hBS) announcing its financial results for the quarter ending June 30, 2024, reported a significant year-over-year growth of 30.5%, with total revenue reaching LKR 466.0 million.
The PeoplesHR Cloud business continued to be the primary driver of growth showcasing a year-over-year growth of 27.9%. Recurring subscription revenues accounted for 84.9% of the PeoplesHR Cloud Business, recording a year-over-year growth of 44.2%. The company surpassed an exit Annualized Recurring Revenue (ARR) of USD 3.5 million during the quarter, with total recurring revenues accounting for 57.7% of the total revenue.
New deal closures for the quarter amounted to USD 357,482, reflecting a 44% year-over-year growth, with 87.5% of these new deals being PeoplesHR Cloud deals, and 46.5% sourced through the company’s channel partner network. Founder and Chairman Dinesh Saparamadu said, “We are witnessing the results of the investments made over the last two years in our ARR growth numbers.
Building a strong base of recurring revenue is essential for achieving non-linear growth typical of software businesses.”
The quarter saw the normalized EBIT and EBITDA margins continued to decline to -9.6% from -7.8% in Q4 FY24 due to the higher partner commissions on partner sourced deals. Despite this, the Free Cash Flow margin improved to -5% from -7% on a quarter-on-quarter basis, showing significant improvement compared to the -28% recorded for FY24. CEO Sampath Jayasundara noted, “The Company has decided to utilize the remaining Rs 350 million of IPO funds, initially allocated for opportunities for Mergers and Acquisitions, to be redirected to finance organic market development activities upon approval at the Annual General
Meeting.Additionally, the Board of Directors approved a distribution of approximately Rs 346 million to shareholders, offering them the choice between receiving the dividend in either cash or scrip form.”
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