Serko lifted annual revenue 28 per cent for a second straight year as it beds itself into new North American markets, although profit declined on fair value adjustments to earn-outs on its InterplX acquisition.
The online travel booking software developer lifted operating revenue to $23.4 million in the 12 months ended March 31 from $18.3m a year earlier, at the upper end of its guidance for 20-30 per cent revenue growth. That included a $900,000 contribution from its new Minneapolis-based expense management business, InterplX.
The US$2.5m acquisition was all-scrip at an issue price of $3.30 a share, with half up front and the remainder contingent on hitting revenue targets. Because Serko's share price has climbed since then - it was recently at $3.43 - it had to recognise the increased cost as a $287,000 expense.
That was largely the difference between Serko's net profit of $1.6m in the March year from $1.8m a year earlier. Earnings before interest, tax, depreciation, amortisation and the fair value adjusted rose 19 per cent to $2.6m.
The acquisition is one of the components built into Serko's guidance for 20-40 per cent sales growth in the 2020 financial year. Earnings growth will depend on revenue, and Serko will provide more guidance at its annual meeting in August.