Next Tuesday morning, 3rd September, GetBusy (LON:GETB), the productivity software group, will announce its Interim Results for the six months to the end of June.
Although they will continue to indicate the possibility of an adjusted pre-tax loss for the year, I am not put off from following this company.
That is because it is progressing in the build-up of its Annual Recurring Revenues, which are well over 90% currently.
And, as for that loss, it will only be slight by the end of this year, perhaps just £0.2m against break-even last year.
However, the next year is expected to see that loss wiped out as the £35m capitalised group turns into profitability.
The Business
Set up in 2017, the Cambridge-based group develops and sells document and task management software products in the UK, the US, Australia, and New Zealand.
It has over 73,000 paying users and over 3m collaborators across multiple market sectors and jurisdictions.
The company is an established and fast-growing SaaS business delivering sustained double-digit growth in high-quality recurring subscription revenue over the long term.
Its specialist productivity software solutions enable growing businesses to work securely and efficiently with their customers, suppliers and teams anytime, anywhere.
Those solutions can be delivered flexibly across cloud, mobile, hosted and on-premise platforms, while integrating seamlessly with other class-leading core business systems, such as ERP, accounting, tax, policy management and insolvency practice management systems.
Its software suite includes various tools and end-to-end workflows such as digital asset and document management, tailored templates, quotes/proposal development, form-fill, authentication, e-signatures and approvals, workflow and task management, chat, and complex digital certification.
The group’s products equip its customers to move away from paper-based processes, reducing waste and eradicating the carbon associated with transporting, storing and destroying paper records.
Its brand names include Workiro and Virtual Cabinet for document workflow management, client portals, and digital signatures; and SmartVault for enterprise content management.
AGM Trading Update
At the end May AGM, the company stated that it had continued to make good operational progress towards its strategic goals.
It reported that its annualised recurring revenue at the end of April was some £20.8m, up from £20.5m on 31 December 2023.
It also reconfirmed expectations for the year and remained very encouraged about the long-term value creation and realisation prospects for the group.
Analyst Views
Michael Hill and Kimberley Carstens at Cavendish Capital Markets are looking for the group’s shares to hit 160p in due course.
Their estimates for the current year are for £22.9m (£21.1m) revenues, while its adjusted pre-tax loss could be £0.2m (£0.0m).
But for 2025 they foresee £24.0m revenues and a break-even position.
In My View
Not making any money, profit-wise, helps to put the shares at a disadvantage in valuation terms.
But what appeals to me is the company’s ability to build up its ARR over the next few years and then further ahead.
GetBusy is a player in a marketplace offering so much potential to such a young creative, fast-developing company.
It will only take the announcement of a small handful of corporate wins to get the shares moving ahead from the current 69p.
Next Tuesday’s announcement may well help that process.