Absolute (ABST) Reports Q1 EPS of $0.06 on Revenues of $28.5M; Narrows FY21 Revenue Outlook

Absolute (NASDAQ: ABST) reported Q1 EPS of $0.06. Revenue for the quarter came in at $28.5 million.

First Quarter Fiscal 2021 (“Q1-F2021”) Financial Highlights

• Total revenue in Q1-F2021 was $28.5 million, representing a year-over-year increase of 11%.
• Net income in Q1-F2021 was $2.6 million, representing a year-over-year decrease of 25%.
• Total Annual Recurring Revenue (“ARR”) (refer to “Non-IFRS Measures and Key Metrics” below) at September 30, 2020 was $111.7 million, representing an increase of 13% over the prior year balance and a sequential increase of 3% as compared to June 30, 2020.
• The Enterprise & Government portions of Total ARR (refer to “Non-IFRS Measures and Key Metrics” below) increased by 12% annually and by 1% as compared to June 30, 2020. Enterprise & Government sector customers represented 67% of Total ARR at September 30, 2020.
• The Education sector portion of Total ARR (refer to “Non-IFRS Measures and Key Metrics” below) increased by 14% annually and 7% as compared to June 30, 2020. Education sector customers represented 33% of Total ARR at September 30, 2020.
• Incremental ARR from New Customers (refer to “Non-IFRS Measures and Key Metrics” below) was $1.8 million in Q1-F2021, compared to $1.1 million in Q1-F2020.
• Net ARR Retention (refer to “Non-IFRS Measures and Key Metrics” below) from existing customers was 102% in Q1-F2021, compared with 100% in Q1-F2020.
• Adjusted EBITDA (refer to “Non-IFRS Measures and Key Metrics” below) in Q1-F2021 was $8.1 million, or 29% of revenue, up from $7.1 million, or 28% of revenue, in Q1-F2020.
• Cash generated from operating activities in Q1-F2021 was $14.7 million, compared to $7.5 million in Q1-F2020.
• Absolute paid a quarterly dividend of CAD$0.08 per common share during Q1-F2021.

“Q1 was a solid start to the fiscal year, with increased momentum as we see demand for persistent visibility, control, and resilience accelerate across various segments in response to remote and hybrid work and learning models,” said Christy Wyatt, President and CEO at Absolute. “In addition, our recent listing on Nasdaq and capital raise was a significant milestone for the company and positions us well to be able to respond to the large market opportunity in front of us.”

GUIDANCE:

Absolute sees FY2021 revenue of $112-118 million.

The Company is updating its previously disclosed financial outlook for F2021 as follows:

• The Company is narrowing its outlook on revenue from $112 million to $118 million (representing 7% to 13% annual growth), to $116 million to $118 million (representing 11% to 13% annual growth).
• The Company is narrowing its outlook on Adjusted EBITDA from 20% to 24% of revenue, to 21% to 24% of revenue.
• The Company is narrowing its outlook on Cash from operating activities from 22% to 34% of revenue, to 25% to 34% of revenue.
• The Company is maintaining its outlook for capital expenditures and expect them to be between $3.0 million and $4.0 million.

For earnings history and earnings-related data on Absolute (ABST) click here.

You May Also Be Interested In

• Blackhawk Network (HAWK) Reports Q2 Loss of $0.07; Offers Guidance
• Boston Omaha Corporation (BOC) Misses Q2 EPS by 2c
• Eledon Pharmaceuticals, Inc. (ELDN) Misses Q2 EPS by 12c