Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

What has the Altium (ASX:ALU) share price done after its HY21 result?

The Altium Limited (ASX: ALU) share price hasn’t moved much so far after the tech business announced its FY21 half-year result.

Altium’s FY21 half-year result

Altium said that it has seen a decline in performance due to the economic slowdown, caused by extreme COVID-19 conditions in the US and Europe, and a challenging environment in China relating to license compliance activities.

The company recently sold its TASKING business, which has been classified as discontinued operations within its report.

Revenue, including discontinued operations, fell by 4% to US$89.6 million. Excluding TASKING, revenue also fell by 4% to US$80 million.

There was a mixed performance across different areas of the business. Board and systems (including Altium Designer) saw a 5% decline in revenue to US$62.1 million. Within that, the Americas saw a 10% revenue decline, EMEA declined 4%, China saw a 15% drop and the rest of the world saw a 13% increase of revenue to US$6.3 million.

There has been strong growth in the cloud offering called Altium 365, with over 9,300 active monthly users and 4,400 monthly active accounts – up 83% and up 69% respectively since July.

Altium’s subscription business saw growth of 12% year on year to reach 52,157 subscribers.

The only other positive area of growth was Octopart, with a 19% rise in revenue to US$10.8 million.

Continuing reported expenses went up 3% to US$53 million, leading to a 15% decline in EBITDA (EBITDA explained) to US$27 million. The reported EBITDA margin fell from 38.3% to 33.8%, while the underlying EBITDA margin fell from 35.9% to 30.6%.

Altium’s profit before income tax sank 23% to US$20.7 million and the profit after income tax went down 12% to US$16.6 million. Group operating cashflow declined 10% to US$18.7 million.

Altium dividend and balance sheet

The amount of cash on the balance sheet increased by 9% to US$88.3 million.

However, that wasn’t enough to stop the board deciding to reduce the dividend by 5% to AU$0.19 per share.

Guidance

With COVID-19 vaccines rolling out and a strong performance in the second quarter of FY21 compared to the first quarter, Altium is expecting a stronger second half.

Its guidance, including the continuing economic uncertain, is for full year revenue to be between US$190 million to US$195 million (excluding TASKING) and an EBITDA margin in the range of 37% to 39%.

Summary thoughts

Altium has been warning that this result would be weak, which it was. It wasn’t much of a surprise, but it’s still disappointing that momentum has slowed so much compared to a year ago.

If Altium can regain its momentum and emerge from this period as the clear market leader in the industry then the long term is still positive, so Altium could still be one to watch during this period of difficulty.

Before you consider Altium, I suggest getting a free Rask account and accessing our full stock reports. Click this link to join for free and access our analyst reports

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW or simply entering your email below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

At the time of publishing, Jaz owns shares of Altium.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

Rask Analyst’s $10,000 Hypothetical Portfolio 

Rask Australia’s expert analysts have just released 11 stock & ETF positions they’d buy right now as part of a $10,000 hypothetical portfolio. 

Completely free, this report comes with the exact ticker codes, how much the analysts would invest and a detailed over the company and why we like it. Plus a 60-min podcast! 

Simply enter your email address and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.