Bravura Solutions returns to profitability in FY24

Australian software vendor Bravura Solutions has returned to profitability during the 2024 financial year, bringing in gross revenue of $250.4 million.

In a statement to the Australian Stock Exchange (ASX), Bravura said during the 12 months to 30 June, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to $25.8 million compared to FY23’s $250.4 million.

This is according to the vendor’s financial report for FY24, which also said its operating expenses were also reduced from $257.7 million to $231 million due to a significant reduction in headcount as part of cost-cutting measures, reorganisation of occupancy requirements and reduction in external costs.

Additionally, Bravura posted an adjusted net profit after tax (NPAT) of $8.8 million, which is up $31.9 million compared to FY23.

The vendor stated to the ASX it will also continue with cost reduction initiatives in FY25.

“Given the scale and pace of our transformation, the overall business has returned to profitability in FY24, with a cash EBITDA of $10 million, up $37.8 million on FY23, and a growing cash EBITDA margin heading into FY25,” Bravura group CEO and managing director Andrew Russell said.

It also reported a positive cash EBITDA of $10 million for FY24, up $37.8 million from FY23, while there was a net cash inflow of $14.2 million during FY24.

With the vendor “now stable, well-capitalised and profitable”, it is now shifting the focus from transformation to growth, with a proposed capital return of up to $75.3 million.

Bravura is expecting for FY25 the targeted cash EBITDA to growth from $28 million to $32 million. However, due to the removal of one-off license fees and reduced project revenue, it is also expecting FY25 revenue to be down compared to FY24.