Bytes Technology Group plc (BYIT) Earnings Call Transcripts

Bytes Technology Group plc's Latest Earnings Call - May 12, 2026

In the full year 2026 results for Bytes Technology Group plc, revenue growth was driven by an 11.5% increase in gross invoice income (GII), while gross profit grew modestly by 2.5% to GBP 167.3 million, impacted by Microsoft incentive changes. Operating profit declined 5.6% to GBP 62.7 million, aligning with prior guidance. Management signaled a recovery in H2 and expects gross profit growth of high single-digit to low double-digit in FY '27, indicating a positive outlook despite recent challenges.

Reported metrics

Guidance from management

Management expects gross profit growth in FY '27 to be in the high single-digit to low double-digit range, indicating a recovery from the previous year's challenges. Operating profit is expected to remain broadly flat as costs normalize.

What management said

So we have this program called the Microsoft Cloud AI Partner program, which is very rich and has a number of different capabilities within it from solution designations and specializations right the way through to partner programs that we can collectively take to our joint customers to really help those customers to accelerate their technology usage and adoption. And I know that you're capable at leveraging those pr...

Well, yes. I mean I think you do a very good job of using the Microsoft platform as a starting point with all of your customers. But in certain customer situations, there may be additional third-party technologies that are required to complement that. You not only have the capability to lead with Microsoft technologies, but also think about the complementary technologies from third parties that you can bring into the...

What analysts pressed on

Analysts expressed concerns regarding the impact of Microsoft incentive changes on gross profit margins and the decline in customer renewal rates. There were questions about the company's ability to sustain growth in non-Microsoft vendor performance amidst these challenges.

Main topics on the call

• Revenue Growth — Bytes reported a gross invoice income (GII) increase of 11.5%, attributed to strong software and services sales. CEO Sam Mudd stated, "We enter the new financial year with good sales momentum and expect to return to high...
• Microsoft Partnership — Microsoft remains a strategic partner, contributing 50% of gross profit. The company reported a return to double-digit growth in Microsoft GP in H2, with services around Microsoft increasing by 31%. Mudd emphasized, "Mic...
• Cost Management — Administrative costs increased by 8.5%, driven by a 17% rise in salary costs due to headcount growth. Andrew Holden noted, "We expect bonuses to be just over GBP 2 million higher based on our full year guidance," indicat...
• Customer Retention — The renewal rate from existing customers was reported at 99%, down from previous years' rates of over 100%. This indicates a slight decline in customer retention, but management expects stabilization moving forward.

Read the full Bytes Technology Group plc transcript (May 12, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 10 Bytes Technology Group plc earnings call transcripts on record, spanning May 24, 2022 to May 12, 2026. Based on this history, Bytes Technology Group plc reports semi-annually. The most recent call on file is dated May 12, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

BYIT

Exchange

LSE

Country

GB

Sector

Information Technology

Industry

Software

Calls on record

10

First call

May 24, 2022

Most recent

May 12, 2026

Reporting cadence

semi-annually