Iress soars 13% on earnings upgrade, cost cuts

The news: Shares in financial services software company Iress have surged in early trading after an update boasted better guidance and cost-cutting measures.

The numbers: IRE shares had soared 13.2% to $6.93 by 11:10am AEDT after the company lifted its FY23 EBITDA guidance range from $118m-$122m to $123m-$128m. Iress said its ongoing transformation, especially relating to a reduction in staff costs and an uplift in sentiment, had contributed to the improvement.

The context: Iress shareholders will be hoping for a sustained turnaround for the software company's share price, which has been on a macro downtrend since hitting a peak of around $15.30 in August 2021. It reached as low as $4.31 in October, little over a month after weak results, reduced guidance and a scrapped interim dividend spooked investors. Iress launched its transformation program in April, which included shakeups in leadership and corporate structure.

What they said: “We are executing our significant transformation plan well and remain confident we’re on the right path towards the Iress Group operating at Rule of 40," Iress CEO and managing director Marcus Price said in a statement.