AOM has delivered a strong y/e update, having achieved breakout revenue growth of 31% (ccy. organic) reflecting how customers are gravitating to its flagship product (ControliQ) to manage operational workloads and capacity and enable organisations ‘to do more with less’. Meanwhile (very reassuringly) results do not reflect a ‘SaaSpocalypse’, as per materially improved NRR reflecting seat expansion and strong upselling. Results are not however entirely ‘without fault’ as ARR is slightly below (due to churn) and margins also marginally below expectations. This combination leads us to downgrade FY27E revs and EBITDA. However, we remain very encouraged by AOM overall progress and direction of travel (wrt. growth and margins) and hence introduce FY28 reflecting this narrative. Based on our new numbers, AOM is trading on 22x P/E, falling to 15x in FY28. We maintain our 286p TP, equivalent to 21.5x FY28 P/E.
