Altium shares soar on strong earnings and guidance

The news: Altium shares rocketed more than 25% on Tuesday after it reported solid full-year results shortly before Monday's close.

The numbers: The software provider boosted its revenue by nearly a fifth to USD263.3 million ($410.5 million) and posted a USD66.3 million profit, up 19.6% from the year before. Earnings per share were up 19.4% and the company delivered a total full year dividend of 54 cents, up 14.9% on FY22. Altium shares opened almost 17% higher than yesterday's close and traded at up to a 29% premium before easing to $46.67 (up 26.6%) at 1:10pm AEST.

The context: Altium has been pursuing a "cloud-first" strategy since launching the industry's first cloud-based eCAD (electronic, computer-aided design) component management application in 2019. Design software revenue and Altium subscription services recorded particularly strong growth in US and EMEA markets in FY23. Altium underscored its strong results with confident forward guidance, flagging up to 23% revenue growth in FY24, and reiterated its aspirational goal of USD500 million annual revenue by FY26.