The RPMGlobal Holdings Ltd (ASX: RUL) share price is rising today after the business gave an update about its latest subscription software numbers.
RPMGlobal says it is a leader in the provision and development of mining software solutions, advisory services and professional development to the mining industry.
Subscription software sales
RPMGlobal wanted to give investors an update about its total contracted value (TCV) for subscription sales and software revenue from perpetual license sales for FY21, which together totalled $52.9 million, including $9.5 million of which has been sold since 18 June 2021.
The company expects to finish FY21 with software subscription TCV of $47.7 million (up from $34.5 million in FY20). This is an increase of $7.3 million from RPM’s last announcement to the market of 18 June 2021.
As of today, 2 July 2021, RPMGlobal’s annual recurring revenue (ARR) from software subscriptions is $21.9 million. That’s an increase from $12.7 million in FY20.
Perpetual software license revenue sold during FY21 finished at $5.2 million (down from $6.9 million), $2.2 million of which has been sold since 18 June 2021.
The company is expecting to release its FY21 result in late August 2021.
Is the RPMGlobal share price an opportunity?
The RPMGlobal share price has risen by 78% over the past year. There has been growth of its software ARR over the months and this comes with a good profit margin and a predictable source of revenue.
RPMGlobal said in its half-year result it saw operating EBITDA (EBITDA explained) growth of 33% to $5.7 million. Profit before tax jumped 50% to $1.2 million.
The company continues to expand its offering to clients. It recently announced the acquisition a ESG company called Nitro Solutions which provides ESG services in the areas of environmental approvals, impact assessment, regulatory advice, environmental audits, compliance reporting (due diligence) and environmental economics, policy and legislation advice.
I think the company has a lot of profit growth potential, but I’m not sure if it’s one of the best priced ASX growth shares today after its strong run over the last month (up almost 20%).
