The earnings call reflected a balanced view with positive aspects such as revenue and ARR growth, strong EBITDA margins, and a commitment to debt reduction. However, negative factors included significant one-time expenses impacting cash flow, increased net finance costs, and challenges related to real estate market exposure.

Company Guidance

During the Dye & Durham second quarter fiscal 2025 earnings call, several key metrics and guidance points were discussed. The company reported a 10% year-over-year revenue growth to $120.7 million, with organic revenue increasing by 6.3%. Annual recurring revenue (ARR) grew 36% to $152 million, now representing 35% of total revenue, up from 27% the previous year. The company maintained a strong EBITDA margin of 55%, with adjusted EBITDA reaching $66.5 million, an 11% increase. Contracted revenue accounted for 57% of the total, with real estate transaction exposure at 41%. Despite a negative free cash flow of $39 million this quarter, primarily due to one-time costs, the company remains focused on debt reduction, having reduced net debt by approximately $30 million to $1.38 billion by the end of December 2024. Looking ahead, Dye & Durham is aiming for positive organic growth, supported by improving real estate markets and a strategic shift towards developing workflow software solutions, signaling a move away from growth through mergers and acquisitions.

Top Line Growth

Dye & Durham reported revenue of $120.7 million, up 10% compared to the corresponding period in fiscal 2024. Organic revenue increased by 6.3%, driven primarily by Canadian practice management software in the Financial Services division.

Increased Annual Recurring Revenue (ARR)

ARR increased to 35% of total revenue, compared to 27% in prior periods. ARR was $152 million, up 36% or $40.3 million year-over-year.

Adjusted EBITDA Growth

Reported adjusted EBITDA of $66.5 million, up 11% from the same period in fiscal 2024, maintaining strong EBITDA margins at 55%.

Debt Reduction Commitment

Net debt reduced by approximately $30 million since December 31, 2023. The company is focused on debt reduction by suspending M&A activities and concentrating on organic growth.

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Dye & Durham (TSE:DND) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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TSE:DND Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 07, 2025	2025 (Q3)	-0.13 / -	-0.345	―	―	―
Feb 13, 2025	2025 (Q2)	-0.28 / -0.27	-0.63	57.14% (+0.36)	―	―
Nov 07, 2024	2025 (Q1)	-0.12 / -0.14	-0.07	-100.00% (-0.07)	―	―
Sep 04, 2024	2024 (Q4)	-0.09 / -1.57	-1.6	1.88% (+0.03)	―	―
May 14, 2024	2024 (Q3)	-0.18 / -0.34	-0.63	45.24% (+0.29)	―	―
Feb 13, 2024	2024 (Q2)	-0.17 / -0.63	-0.52	-21.15% (-0.11)	―	―
Oct 30, 2023	2024 (Q1)	-0.21 / -0.07	-0.15	53.33% (+0.08)	―	―
Sep 13, 2023	2023 (Q4)	-0.13 / -1.60	-0.05	-3100.00% (-1.55)	―	―
May 10, 2023	2023 (Q3)	-0.14 / -0.63	-0.1	-530.00% (-0.53)	―	―
Feb 13, 2023	2023 (Q2)	0.04 / -0.52	-0.06	-766.67% (-0.46)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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TSE:DND Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 13, 2025	C$13.73	C$13.25	-3.50%
Nov 07, 2024	C$19.69	C$17.24	-12.44%
Sep 04, 2024	C$13.94	C$13.25	-4.95%
May 14, 2024	C$14.07	C$13.70	-2.63%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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