Announcement PDF MARKET RELEASE Integrated Research Limited FY25 First Half Results Sydney, Australia, 20 February 2025 – Integrated Research (ASX:IRI) a leading global provider of technology that harvests and analyses data to help enterprise clients optimise their IT ecosystem, today released its results for the six-month period ending 31 December 2024. Highlights • • • • • New business growth of 76% to $7.6m versus PCP (prior corresponding period) TCV (Total Contract Value) and statutory revenue down 36% to $26.5m and 29% to $28.8 on PCP respectively due to softer 1H renewals book EBITDA2 of $4.6m down by 58% on PCP Strong fundamentals – pro forma revenue1 steady, cost management discipline New product released; major US bank signed Revenue With a softer renewals book in 1H, statutory revenue was down 29% versus PCP, EBITDA was down 58% against PCP to $4.6 million, and Net Profit After Tax (NPAT) decreased by 59% to $4.6 million. NPAT was supported by an increase in interest income, reflecting increased cash on deposit, offset by a higher effective income tax expense, given prior utilisation of carried forward R&D tax credits. Pro forma revenue apportions licence fee revenue evenly over the life of the contract. Pro forma revenue was steady, decreasing by 2%. Pro forma EBITDA3 was up 53% to $11.8 million on PCP, which included gains from currency exchange and the sale of non-core business. Peter Lloyd, Chair, IR, said “The first half of FY25 continues the build on our financial capacity with a solid balance sheet, and strong cash reserves. With positive signs of new business revenue improvement and disciplined expense management delivering profit and cash generation, our sound financial base sets a platform for the company to pursue growth initiatives to deliver new revenue streams and improve shareholder returns.” Growth in New Business In 2024 the Company announced a strategic reset. The reset focuses the Company on growth via new business (new clients and upsell to existing clients), underpinned by investment in the development of new products aligned to the core competencies and DNA of the business. In 1H FY25 the Company launched a new product - High Value Payments – and secured a large US bank as a foundation client. This milestone demonstrates the Company’s ability to create and commercialise new product as per the product led growth strategy. Integrated Research Ltd > ABN 76 003 588 449 Suite 9.03, Level 9, 420 George Street, Sydney NSW 2000 Australia t: +61 (2) 9966 1066 e: infoAP@ir.com Expenses Expenses were down on account of disciplined cost management. Cash The Company’s net cash position as of 31 December 2024 was $31.1 million, compared to $31.9 million at 30 June 2024. The cash conversion rate declined during the period due to the soft 1H renewal cycle and deal mix, resulting in less cash being received up-front. The Company remains debt free. Dividends The Board has not declared an interim dividend. Priorities for 2H FY25 The Company is focused on the execution of its product-led growth strategy, with priority against the following: • • • Invest in innovation to create and commercialise new products Grow sales pipeline and revenue contribution from new business (new clients and upsell to existing clients) Transition to sustainable growth and a future less reliant on contract renewals Ian Lowe, Chief Executive Officer, IR said, “We are encouraged to see early signs of progress against our product-led growth strategy. The launch of High Value Payments and securing a large US bank as a foundation client points to our ability to productise new capabilities and sell these into enterprise level clients, consistent with our ideal client profile (ICP). As new product momentum builds and washes through the sales cycle, it places the Company in the best possible position to deliver sustained growth. The Company expects to make further new product announcements in coming months.” Integrated Research Ltd > ABN 76 003 588 449 Suite 9.03, Level 9, 420 George Street, Sydney NSW 2000 Australia t: +61 (2) 9966 1066 e: infoAP@ir.com Reconciliation of Revenue and Pro forma Revenue, and Net Profit After Tax (NPAT) to EBITDA and Pro forma EBITDA. In thousands of AUD 1H25 1H24 Revenue 28,839 40,844 Term license fees recognised upfront -17,239 -28,246 Amortised license fees 24,960 24,716 Pro forma Revenue 1 36,560 37,314 Net Profit after Tax (NPAT) 4,572 11,181 Income tax expense 1,403 805 Finance Income -1,440 -1,078 108 49 EBITDA 2 4,643 10,957 Cost deferral related to over time revenue -606 277 One-time revenue conversion 7,720 -3,530 Pro forma EBITDA 3 11,757 7,704 Depreciation and Amortisation 1 Pro forma revenue provides a non-statutory alternate view of underlying performance by restating term licence fee revenue to be on a recurring subscription basis (i.e., overt time), rather than upfront at the commencement of a contract, per the statutory view. Other recurring revenues such as maintenance fees and cloud services, as well as other non-recurring revenue streams such as perpetual licence fees, professional services and one-time testing services are consistently treated, as part of pro forma and statutory revenue views. 2 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) is a non-IFRS measure used to evaluate the Company's operating performance by focusing on profit from core operations and excluding the effects of capital structure, tax rates, and non-cash accounting items like depreciation and amortisation. 3 Pro forma EBITDA provides a non-statutory alternate view of the underlying operating performance of the Company by using pro forma revenue instead of statutory revenue and then deducting operating expenses after adjusting commission costs for timing differences, to ensure revenues and expenses are matched to the correct periods. Integrated Research Ltd > ABN 76 003 588 449 Suite 9.03, Level 9, 420 George Street, Sydney NSW 2000 Australia t: +61 (2) 9966 1066 e: infoAP@ir.com This announcement is approved for release by the Board. Leanne Ralph Company Secretary Integrated Research Limited ABN 76 003 588 449 About Integrated Research Limited (ASX: IRI). Integrated Research (IR) is the leading global provider of user experience and performance management solutions for payment transactions and collaborative systems. We create value through our real-time, scalable & extensible hybrid cloud platform and our deep domain knowledge to optimise operations of missioncritical systems and improve user experience through intelligent and actionable insights. We enable many of the world’s largest organisations to simplify complexity and provide visibility over systems that millions of people can’t live without – systems that allow them to transact and collaborate. For further information on IR, visit www.ir.com. Integrated Research Ltd > ABN 76 003 588 449 Suite 9.03, Level 9, 420 George Street, Sydney NSW 2000 Australia t: +61 (2) 9966 1066 e: infoAP@ir.com