ReadyTech Holdings Ltd (ASX: RDY) shares have taken a hit on Wednesday after the company released its 1H FY25 results.

Shares in the software as a service (SaaS) provider currently fetch $2.80 apiece, down more than 15% as investors react to the update.

Let's jump in and see what the company posted.

ReadyTech shares slide after 1H FY25 results

Readytech posted a number of interesting updates in its half-yearly results. Here are some of the takeouts:

• Total revenue increased by 6.6% to $58.3 million
• Pre-tax income of $18.2 million, up 4.6% year over year, resulting in a margin of 31.2%
• Non-cash impairment of $20.6 million against goodwill and related assets for the Government & Justice segment
• Enterprise pipeline now stands at over $37.5 million

What else happened in FY25?

ReadyTech shares caught a decent bid during the first half, and the company notes it has reached "an inflection point".

Revenues were up nearly 7% on the year, and the inflection point in question is made up of the "depth of current sales opportunity pipeline and advanced stage opportunities", per the company.

The company also said the acquisition of CouncilWise has been successful in "unlocking new opportunities" in the Local Government sector.

As a positive, net revenue retention came in 102%, but the segment saw delays as ReadyTech rolls over customers to a "complete cloud platform".

Despite these progress notes, ReadyTech shares continue trending lower today following the update.

What did management say?

ReadyTech Co-Founder and CEO Marc Washbourne commented positively on the first half.

ReadyTech has made significant progress in delivering on our enterprise strategy, securing key new customers and expanding within our existing base over the first half of FY25. Revenue grew 6.6% driven by strong contributions from Education, Workforce Solutions and Justice, with growth trajectory maintained with new contract wins and upsell momentum. Our disciplined approach to targeting high-value enterprise opportunities has supported sustained segment EBITDA margins and ongoing subscription revenue growth.

Our pipeline is gaining strength in conviction, bolstered by multiple advanced-stage contract opportunities. In addition, the recent CouncilWise acquisition has reinforced this momentum, addressing a product reference gap and unlocking new opportunities in Local Government. With these strategic moves, ReadyTech is set for continued success that will translate into tangible growth in the second half and beyond.

What's next?

Washbourne also gave fairly detailed guidance for ReadyTech for the full year.

Our enterprise pipeline of $37.5 million, including $13.5 million in shortlisted and preferred stage opportunities, provides strong visibility into future growth. While Local Government revenue isexpected to remain stable, other segments are on track for double-digit growth, resulting in overall Group revenue increasing at high single-digits in FY25.

As we continue scaling our solutions and the depth of current sales opportunity pipeline and active tenders forming an inflection point for a return to mid-teens growth, underpinning a revenue target of $160 million -$170 million by FY27.

ReadyTech share price snapshot

Investors have reacted swiftly to ReadyTech's first-half numbers, with shares deep in the red from the open.

Zooming out, the stock is up more than 6% this year to date.