Release Date: May 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Strong revenue growth with a 20% increase in operating revenue to AUD70.7 million.
- Significant expansion of the team with a 27% increase in FTE to support growth drivers.
- Introduction of new product innovations, including operating system agnostic POS and kitchen systems.
- Expansion of Plexure Platform into key Asian markets like Hong Kong and Taiwan.
- Maintained a net cash position of $18.8 million with no debt facilities or borrowings.
Negative Points
- Operating costs increased by 30% due to focused investment in people and platform.
- Staff costs rose by $9.4 million, impacting overall profitability.
- IT costs increased by $6.2 million due to higher active user numbers on the McDonald's platform.
- Posted a net loss after tax of $7.4 million for FY24.
- Share-based payment expenses and related costs amounted to $4.3 million, contributing to the net loss.
Q & A Highlights
Q: Can you provide more details on the revenue growth drivers for FY24?
A: Daniel Houden, CEO: Our revenue growth was driven by a 20% increase in operating revenue to AUD70.7 million. This was supported by a 27% increase in FTE to bolster our digital ecosystem, innovative product offerings, and customer focus. Additionally, our Plexure division saw a 32% revenue growth due to new McDonald's commercial arrangements, and the TASK division added new customers in North America and Australia.
Q: What are the key technology innovations TASK Group has introduced recently?
A: Daniel Houden, CEO: We have released new modules and capabilities to our end-to-end transaction platform, including extending loyalty features, a new POS experience, enhanced back office and mobile order/pay platforms, and additional third-party delivery providers. We are also developing OS-agnostic POS and kitchen systems, all-in-one mobile pods, and payment capabilities. TASK Insights, our mobile reporting app, will soon be available in app stores.
Q: How has the Plexure Platform performed in terms of customer engagement and growth?
A: Daniel Houden, CEO: The Plexure Platform saw a 27% growth in active customers, a 36% increase in transacting customers, a 56% growth in loyalty transactions, and a 107% increase in delivery and mobile order/pay. The platform also expanded into key Asian markets like Taiwan and Hong Kong.
Q: Can you elaborate on the financial performance and profitability of TASK Group for FY24?
A: Glenn Day, CFO: Our operating profit was AUD7.8 million, reflecting increased investment in development resources. FY24 EBITDA was AUD939,000, with a net loss after tax of AUD7.4 million due to share-based payments and amortization costs. Recurring revenue grew by 31% to AUD67.4 million, with the Plexure division contributing significantly.
Q: What strategic milestones did TASK Group achieve in FY24?
A: Daniel Houden, CEO: We expanded our team by 27%, launched new product features, and increased our deployment backlog. We also expanded the Plexure Platform into new markets and enhanced our end-to-end transaction platform. Additionally, we made significant progress on our proposed scheme of arrangement with PAR Technology.
Q: How is TASK Group positioned for future growth?
A: Daniel Houden, CEO: We have laid strong foundations for global growth with a robust digital ecosystem and innovative product offerings. Our backlog of over 800 locations moving to our transaction management platform and 1,300 locations deploying our new digital-first platform will positively impact revenue in FY25. We are also in a strong financial position with a net cash position of AUD18.8 million and no debt.
Q: What are the details of the proposed scheme of arrangement with PAR Technology?
A: Daniel Houden, CEO: The Scheme Booklet has been dispatched to shareholders, and the independent expert has concluded that the scheme is fair and reasonable. The Board recommends shareholders vote in favor of the scheme. The Scheme Meeting is scheduled for June 28, 2024, with the implementation date set for July 19, 2024.
Q: How has TASK Group's investment in people and platform supported its growth?
A: Glenn Day, CFO: Our investment in people, with a 27% increase in FTE, underpins our tech leadership and customer demand. Most of our team is focused on product and development, supporting our core growth drivers. This investment will continue to drive strong and profitable growth in the year ahead.
Q: What are the future projections for TASK Group?
A: Daniel Houden, CEO: We expect continued strong and profitable growth driven by new and existing clients expanding their digital services. We will also commercialize areas of our platform that we have expanded, resulting in an exciting backlog of deployments and revenue growth.
Q: How has the TASK division performed in terms of product investment and innovation?
A: Daniel Houden, CEO: The TASK division has focused on expanding our end-to-end transaction platform with new features like a new POS experience, iOS and Android readiness for POS and kitchen systems, and an all-in-one mobile POS and payment solution. We have also enhanced our back-of-house platforms and introduced additional third-party application integrations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
