Integrated Research expects its NPAT to reduce in FY2022.

Integrated Research (ASX: IRI) has provided FY2022 trading update and highlighted that due to Company’s traditional sales cycle, there was a significant number of new contract sales and renewals executed in the closing weeks of December and June of each year.

The Company expects strong sales in the Asia Pacific region. However, the second half anticipated for the Americas is yet to materialise.

IRI’s FY2022 renewal cycle is lower than the previous year. The current year’s business plan is heavily weighted to the achievement of new business. The momentum it achieved in 1H FY2022 slowed recently with delays in customer purchasing patterns.

New business closed on a YTD basis represents 37% of Total Contract Value (TCV). Now, it expects TCV to reduce compared to the previous corresponding period (PCP). IRI’s revenue is influenced by licence fees from term contract wins. Several contract outcomes are to be decided over the subsequent six weeks.

It expects Pro-forma revenue is anticipated to be down between 3% to 7% for FY2022 on PCP. The Company expects to remain profitable in FY2022. However, NPAT is expected to be below the previous year.

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