Itron (ITRI) reported non-GAAP operating income up 20% year over year on 3% revenue growth, with annual recurring revenue expanding 25% to $423 million. The results point to margin expansion alongside modest top-line gains, with recurring revenue growth outpacing overall sales.
Itron (ITRI) reported non-GAAP operating income growth that outpaced revenue growth, alongside a sharp increase in annual recurring revenue, according to an earnings takeaways report published by fool.com.
##Operating Income Outpaces Revenue
Non-GAAP operating income rose 20% year over year, while revenue grew 3% over the same period. The gap between the two figures indicates margin expansion alongside modest top-line gains.
##Recurring Revenue Growth
Annual recurring revenue expanded 25% year over year to $423 million. That growth rate exceeded the company’s overall revenue growth of 3%.
##Key Figures at a Glance
- Non-GAAP operating income: up 20% year over year
- Revenue: up 3% year over year
- Annual recurring revenue: up 25% year over year, to $423 million
The results point to recurring revenue growing faster than total sales, with operating income growth well ahead of revenue growth.