Checkit halves losses in FY24, on track for profitability by FY27
Intelligent operations platform provider () announced its audited final results for the year ended January 31, 2024 (FY24).
Checkit reported a 16% increase in annual recurring revenues (ARR) to £13.3m from last year's £11.5m, in line with market expectations. Compound recurring revenue growth since FY20 has been 30%, reflecting the company's focus on subscription-based sales.
Total group revenue from continuing operations was up 17% to £12.0m from £10.3m in FY23, with net revenue retention climbing to 111%. Checkit made significant progress toward profitability in FY24, with a 46% improvement in adjusted LBITDA from continuing operations of (£3.4m), up from (£6.4m) LY, driven by revenue growth of 17%, an increase in gross margins to 67% from 63% LY, and an 11% reduction in operating costs.
Net cash at year-end was £9.0m from £15.6m in FY23, with a 23% reduction in cash burn year-on-year.
View from Vox
An impressive result from Checkit, halving losses and growing recurring revenues and margins substantially, as the automation company continued to progress toward profitability - now expected in FY27 (calendar 2026). Momentum is strong into FY25 after ARR increased for a 4th consecutive year, with a retention rate of 111% providing strong visibility.
Top-line growth was further bolstered by the recent launch of 's Asset Intelligence product, a powerful machine learning tool that analyses the condition of monitored appliances to predict issues before they escalate. In financial terms, the product identifies operational inefficiencies, aiming to boost visibility of asset performance. said its existing customers should expect at least a 50% improvement in ROI of its IoT sensors, as well as substantial reductions in CO2.
Overall, with several recently won contracts adding to a significant pipeline, a new software asset that is a competitive differentiator, and a robust balance sheet, we expect 's growth momentum to continue in FY25 and into cashflow breakeven 2 years from now.
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