Letter to our shareholders H1 FY2024
Objective Corporation reported profitable growth in the first half of FY2024 and anticipates a strong outlook for the second half.
The company has doubled its investment in innovation over the past five years, accounting for 43% of its all-time R&D investment.
These investments have led to the development of new cloud offerings like Objective Nexus and the evolution of existing products, transforming Objective into a cloud-first, subscription-only company.
Objective Corporation is committed to a 15% growth target in Annual Recurring Revenue (ARR) for FY2024 while also expanding margins.
The company emphasizes customer value, investing in product innovation, and scaling profitably as its three strategic lenses.
Objective has successfully transitioned its public sector customers to cloud information governance, laying a foundation for future conversions.
The company plans to refine its Content Solutions portfolio, consolidating products under Objective Nexus for a more integrated offering.
Investment in product innovation is significant, with 30% of software revenue directed towards this in 1HY2024, focusing on long-term, mission-critical government software solutions.
Objective leverages AI and machine learning across its products, focusing on evolving its Objective Design Language (ODL) for a consistent user experience and meeting stringent security requirements.
The company is cautious with acquisitions, seeking strategic alignment and long-term value rather than short-term ARR boosts.
Objective has transitioned to 100% subscription-based software revenue, doubling its ARR balance since 1HY2019.
The company focuses on long-term customer success, profitability, and process excellence to deliver solutions more efficiently.
Objective Corporation anticipates overcoming the one-off headwinds experienced in FY2023, with strong momentum in business lines and a positive outlook for the remainder of FY2024.
This announcement is a summary of the company approved ASX announcement on 22/2/2024.