Nitro Software recapped a bumper September quarter and as a result, upgraded its FY21 guidance.
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At the time of writing, the Nitro Software share price is up 2.25% to $3.63.
September quarter highlights
The document productivity software company posted strong growth rates across its key operating metrics. Some key highlights include:
Annual recurring revenue (ARR) up 50% year-on-year
Transition to a software-as-a-service business model gathering momentum, subscription revenue now represents 68% of total revenue compared to 56% a year ago
Cash receipts rose 24% to US$14.0 million
Cash and cash equivalents of US$31.4 million as at 30 September
Nitro upgraded its FY21 guidance, reflecting its strong performance in the third quarter.
This is likely a catalyst driving the Nitro Software share price in today’s trading session.
The company reaffirmed its ARR from US$39 million to US$42 million.
It upgraded its revenue forecasts to between US$49 million and US$51 million, up from its previous guidance of US$47 million and $50 million.
Its operating earnings before interest, taxes, depreciation and amortisation (EBITDA) loss was also improved, forecast to be within the range of US$8 million to US$10 million compared to its previously US$9 million to US$11 million guidance.
Nitro’s Co-Founder and CEO Sam Chandler commented on the results, saying:
The response from existing and new customers has been terrific, and as our customers have adapted to the new work-from-anywhere environment, they have clearly embraced the flexibility offered by our trusted set of productivity tools. This is reflected in the acquisition of new customers, the expansion within our existing customer base, and the resulting growth of subscription revenues as a percentage of our overall business
Nitro Software share price snapshot
The Nitro Software share price is up 14% year-to-date and within an arms reach of its September all-time highs of $3.79.
The post Why is the Nitro Software (ASX:NTO) share price on the rise on Wednesday? appeared first on The Motley Fool Australia.
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.