RaaS Research has published an update on edtech group ReadCloud (ASX:RCL) following its FY24 result in which it grew revenue by 15% and in line with our forecasts and positive underlying EBITDA of $0.4m, a $1.1m turnaround and ahead of our forecast for $0.1m. The company has delivered on all stated FY24 targets, providing a platform for sustained profitable growth over the coming periods. Management has pointed to 15% compound organic revenue growth out to FY26 to be complemented by further operating leverage and positive cash generation. We retain existing forecasts but look for updates in upcoming quarterly cashflow statements and communication in early 2025 for further guidance. Our DCF valuation remains at $0.35/share, representing potential upside of 386% from the current share price.
