After market close today, Dye & Durham (TSE:DND), a provider of cloud-based legal practice management software, announced its Fiscal Q3-2023 earnings results. The results showed contracted annual recurring revenue doubling to 18% of total revenue. However, DND’s earnings per share (EPS) came in at -C$0.63, missing the -C$0.11 consensus estimate, and revenue of C$104.1 million missed the C$108.3 million estimate.
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The firm also reduced its revenue exposure to real estate transactions, down to 50% globally and 26% in Canada. On top of exceeding its target of a 10% reduction in operating expenses compared to the prior-year quarter, DND announced a substantial issuer bid to buy back up to C$15 million worth of its outstanding common shares.
Nonetheless, Dye & Durham’s revenue of C$104.1 million in the quarter represents a 15% decrease from the same period last year. The company also recorded negative net income, at -C$35.2 million, a decrease of C$28.1 million from the prior year, and adjusted EBITDA of C$56.1 million, a C$10.7 million (16%) year-over-year decline.
Fiscal Q4 Guidance
Looking ahead, Dye & Durham provided guidance for Fiscal Q4, anticipating revenue in the range of C$115 million – C$120 million and adjusted EBITDA between C$65 million – C$70 million.
Is Dye & Durham Stock a Buy, According to Analysts?
Turning to Wall Street, DND has a Strong Buy consensus rating based on four unanimous Buy ratings. The average Dye & Durham price target of C$26 implies 57.2% upside potential.
