Hansen Earnings: Organic Revenue Growth Slow but Powercloud Acquisition Looks Promising

Slow organic revenue growth and declining margins in first-half fiscal 2024 are in line with recent results and our expectations for narrow-moat Hansen. Revenue grew 12% on the prior corresponding period but was significantly aided by growth in highly volatile license revenue. Excluding this, revenue grew just 2% from the prior half, which is low for a largely recurring revenue business model. Guidance is for second-half revenue in line with the first half, implying a midteens organic growth rate for the year.