Accesso Technology Group (LON:ACSO) has released its full-year financial results for 2023, showing an increase in revenue of US$149.5 million, up 7.0% from the previous year. However, the company’s net income decreased to US$7.69 million, down 24% from the previous year. The profit margin also dropped to 5.1%, from 7.2% in the previous year, with earnings per share (EPS) falling to US$0.19 from US$0.24.
Despite the decline in net income, accesso Technology Group’s revenue exceeded analyst estimates by 1.4%. Furthermore, EPS surpassed analyst expectations by 78%. The Ticketing segment accounted for a significant portion of the company’s revenue, contributing US$104 million, while General & Administrative costs were the largest operating expense at US$94.5 million.
Looking ahead, accesso Technology Group is forecasted to experience an average annual revenue growth of 7.2% over the next three years, compared to a 10% growth forecast for the Software industry in the United Kingdom. The company’s shares have seen a 6% increase in value over the past week alone.
However, there are two warning signs that investors should be aware of before investing in this stock.
Firstly, although accesso Technology Group has experienced steady growth over recent years, it may not be able to maintain its current pace of expansion without making significant investments in new technology or expanding into new markets.
Secondly, despite its strong performance in recent years, accesso Technology Group still faces intense competition from other ticketing companies like Ticketmaster and Eventbrite.
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