On April 4, D2L (TSE:DTOL), a global learning technology company, reported its Fiscal Q4-2023 and Fiscal 2023 earnings results. While earnings per share (EPS) slightly beat estimates, revenues just missed the mark. Please note that all figures are in U.S. dollars unless otherwise stated.
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Q4-2023 Results
For Q4 2023, total revenue came in at $42.7 million (missing estimates of $43.2 million), a 3% year-over-year increase, and constant-currency revenue grew by 6% to $44 million. Further, EPS was negative at -$0.10, just beating the consensus estimate of -$0.102.
Although subscription and support revenue for the quarter increased by 4% year-over-year to $37.8 million, D2L’s net revenue retention rate decreased by 500 basis points to 102% at year-end. Further, the company reported a loss of $6.2 million for the quarter and cash flow used in operations of $5.3 million.
Full-Year Results
For the full fiscal year ended January 31, 2023, D2L reported an 11% increase in revenue to $168.4 million, with a 14% increase in constant-currency revenue to $172.6 million, while annual recurring revenue increased by 9% year-over-year to $168.0 million. The company also achieved positive cash flow from operations of $3.8 million, higher than last year’s figure of $0.1 million.
D2L’s CEO, John Baker, said the company’s team had made good progress toward its balanced growth plan, positioning the company for margin expansion and growth in adjusted EBITDA and free cash flow in the current fiscal year while making disciplined investments to build on its success in core markets.
Is DTOL Stock a Buy, According to Analysts?
DTOL stock has a Moderate Buy rating based on just one Buy assigned in the past three months. Further, DTOL stock’s price target of C$14.00 implies upside potential of 64.7%.
