Motio Limited Boosts FY25 Revenue and EBITDA Guidance on Strong Trading Momentum
Motio Limited has upgraded its FY25 financial guidance following robust trading after the April period, raising revenue and cash EBITDA targets while maintaining a solid cash position.
- Revenue guidance increased to $8.5-$8.9 million
- Cash EBITDA target upgraded to $1.35 million
- Cash reserves stand at $2.6 million
- Net amount owed to OML is $1.06 million
- Positive trading sustained post-Easter and Federal election period
Motio’s Upgraded FY25 Outlook
Motio Limited (ASX:MXO), a player in the software services sector, has announced an upgrade to its financial guidance for the fiscal year 2025. This follows a period of sustained positive trading after the Easter and Anzac Day holidays, as well as the recent Federal election. The company now expects revenue to reach between $8.5 million and $8.9 million, up from the previous range of $8.4 million to $8.8 million.
Alongside the revenue upgrade, Motio has also raised its cash EBITDA target to $1.35 million, inclusive of rent expenses, from an earlier target of $1.2 million. This signals improved operational profitability and cash generation, a key metric for investors assessing the company’s financial health.
Financial Position and Operational Confidence
Motio’s cash balance remains robust at $2.6 million, providing a healthy liquidity buffer as the company navigates the remainder of FY25. The net amount owed to OML stands at $1.06 million, reflecting ongoing financial arrangements that investors will be watching closely for any changes.
CEO and Managing Director Adam Cadwallader expressed optimism about the company’s trajectory, highlighting the team’s conscientious efforts and the positive momentum in trading. He encouraged shareholders to engage directly with management, underscoring a transparent and shareholder-focused approach.
Context and Market Implications
This upgrade comes at a time when many technology and software services companies face uncertainty due to macroeconomic factors and geopolitical events. Motio’s ability to improve guidance post a traditionally quiet trading period suggests resilience and potential for sustained growth.
However, the announcement stops short of detailing the specific drivers behind the improved performance or outlining risks that could impact future results. Investors will be keen to see whether this positive trend can be maintained and how Motio plans to leverage its strengthened position.
Looking ahead, the company’s next updates will be critical in confirming the sustainability of these gains and providing deeper insight into operational execution and market conditions.
Bottom Line?
Motio’s upgraded guidance signals growing confidence, but investors will watch closely for confirmation of sustained momentum.
Questions in the middle?
- What specific factors contributed to the improved trading performance post-April?
- How sustainable is the upgraded cash EBITDA target amid evolving market conditions?
- What are the terms and implications of the net amount owed to OML for Motio’s financial flexibility?
