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ReadyTech MARKET RELEASE ReadyTech delivers strong 1H FY21 results , on track to achieve FY21 guidance SYDNEY , 17 February 2021 - ReadyTech Holdings Limited ( ASX : RDY ) , a leading provider of SaaS technology in education and workforce solutions , is pleased to announce its results for the 6 months ended 31 December 2020 ( 1H FY21 ) in which the Company continued to achieve strong growth across all key financial metrics , positioning it to achieve FY21 guidance previously provided . 1H FY21 : strong growth in revenues and key metrics¹ Revenue up 13.4 % to $ 21.8 million ( organic revenue up 10.3 % ) ○ Average annual revenue per customer up 22.3 % to $ 11.8k ○ Customer revenue retention rate maintained at 95 % Underlying EBITDA up 0.5 % to $ 8.3 million with an EBITDA margin of 37.9 % Underlying NPATA up 9.3 % to $ 4.7 million Operating cashflow conversion ratio of 87 % ( 1H20 : 86 % ) Commenting on the 1H FY21 results , ReadyTech CEO Marc Washbourne said : " The past six months clearly reinforced the mission - critical nature of ReadyTech's next generation SaaS solutions , and represented a strong validation of our strategy to provide cloud - based software that is people - centric and highly flexible in a fast - changing world . " Our continued top line growth reflects the team's focus on winning higher value customers and upselling existing customers into new feature sets . On the back of this positive revenue outcome , we have been able to reinvest back in the business as planned , both in terms of people and technological innovation , which will underpin future growth . " The Company's earnings are robust , with profit margins tracking in line with previously announced FY21 guidance , including the increased investment . We now look forward to welcoming the Open Office acquisition to ReadyTech which we expect to further power future growth for the Company . " Strong top line growth and 1H FY21 profit margins in line with FY21 guidance Over 1H FY21 , the combination of new customer wins and cross - selling to existing customers underpinned 13.4 % growth in revenue to $ 21.8 million . Within this result , recurring revenue grew 15.6 % , comprising 89 % of total revenue . The strong revenue result is reflective of the digital transformation taking place in ReadyTech's key market segments , with customers increasingly seeking to replace legacy technology with next generation cloud - based offerings . ReadyTech continued its strategy of reinvesting for future growth , with operating expenses up 24.4 % to $ 13.6 million . Sales and marketing costs are now 9.6 % of revenue , up from 7.4 % in 1H FY20 . 1 All figures are in AUD and comparisons are made against 1H FY20 unless specified . Level 1 , 35 Saunders St , Pyrmont , NSW 2009 , Sydney , Australia , p : 02 9018 5525 | e : info@readytech.com.au I w : www.readytech.com.au