Sidetrade's 2023 Results: Robustness of the profitable growth model
confirmed
Robustness of the profitable growth model confirmed
- Strong revenue growth, up 20%, with SaaS subscriptions up
23% at constant exchange rates
- CreditPoint Software, an accretive acquisition, now fully
operational
- Operating profit up 58% to €5.8 million vs. €3.7 million in
2022
- Operating margin up sharply to 13% vs. 10% in 2022
- Net profit up 67% to €5.6 million vs. €3.4 million in
2022
- Operating cash flow generation at €8.7 million
- Dual recognition for CSR commitment: rated Gold by
EthiFinance and Silver by EcoVadis
Sidetrade, the global leader in
AI-powered Order-to-Cash applications, today announces a 20%
increase in revenue for 2023 at constant exchange rates (up 19%
on a reported basis), with a surge in operating profit,
up 58% to €5.8 million, as well as in operating margin at 13%, and
in net profit, up 67% to €5.6 million.
Olivier Novasque, CEO of Sidetrade
commented:
"The 2023 fiscal year further confirmed the
robustness of Sidetrade's development model. On the one hand,
thanks to our technological lead in AI, 2023 was our most prolific
year to date in new Annual Contract Value terms, achieving €11.2
million. Sidetrade delivered remarkable revenue growth, up 20% at
constant exchange rates with a 23% increase in SaaS subscription
revenues alone for our Order-to-Cash activities. This performance
was underpinned by two key growth drivers; our successful US
expansion posting revenues up more than 40%, combined with our
business strategy targeting multinationals, which triggered a 48%
increase in subscription revenues from this segment. Given the SaaS
model's inherent lag between bookings and revenues, the commercial
successes of 2023 lead us to confidently anticipate another year of
double-digit revenue growth on a full-year basis for the fiscal
year 2024.
On the other, 2023 also saw us considerably step
up our investments, especially in the United States, as well as
relentlessly focusing on Company-wide productivity and efficiency
enhancements. To this end, our efforts to streamline processes
coupled with a high gross margin (81%) resulted in a significant
surge in our operating profit, up 58% to €5.8 million, with an
improvement of almost 3 points in our operating margin, which is
now at 13% of our revenue versus 10% in 2022. Evidently, the best
example of the Company's successful 2023 performance is its
operating cash flow at €8.7 million, a record high over a fiscal
year.
Looking beyond these figures, Sidetrade's model,
which is based on a healthy balance between growth and
profitability, has once again demonstrated its relevance against a
background of economic uncertainty."
Robustness of the profitable growth model
confirmed
Sidetrade (€m) |
2023 |
2022 |
Change |
|
|
|
|
New Annual Contract Value (ACV) |
11.2 |
10.3 |
+9% |
|
|
|
|
Revenue |
43.7 |
36.8 |
+19% |
of which 'Order-to-Cash' SaaS subscriptions |
36.6 |
30.1 |
+22% |
|
|
|
|
Gross margin |
35.3 |
29.0 |
+22% |
as a % of Revenue |
81% |
79% |
|
Operating expenses (OPEX) |
(29.4) |
(25.3) |
+16% |
|
|
|
|
Operating profit |
5.8 |
3.7 |
+58% |
as a % of Revenue |
13% |
10% |
|
Net profit |
5.6 |
3.4 |
+67% |
2023 consolidated financial statements were audited and will be
certified after finalization of procedures required for the annual
financial report.
€11.2 million – a new record for bookings in
2023In 2023, despite economic challenges, Sidetrade proved
resilient by exceeding its previous record in New Annual Contract
Value (ACV), which totaled €11.2 million, representing
an increase of 9%. This performance was driven in particular by the
momentum of the US market, with a 22% increase in bookings,
accounting for 37% of total bookings.
New SaaS bookings generated €6.18 million,
remaining stable despite a slight decline of 4% vs. 2022. Sidetrade
focused efforts on the sustainability of its revenues, as reflected
in an extension to the initial period for new contracts to 45.5
months in 2023. Total Contract Value (TCV)
slightly increased to €21.1 million. Services bookings were
up 31%, notably thanks to the growing number of global deployment
projects.
Key factors behind this success were Sidetrade's
business strategy targeting companies generating $1
billion-plus revenue, and recognition of its technological edge
in artificial intelligence, particularly in the United States.
Sidetrade's comprehensive Order-to-Cash solution results from a
strategy of continuous innovation.
Bookings by new customers ("New Business")
accounted for 58% of the total new bookings, while the remaining
20% and 22% of bookings were respectively driven by cross-selling
and upselling of additional modules to existing customers.
Strong revenue growth, up 20%, with SaaS
subscriptions up 23% at constant exchange ratesIn 2023,
Sidetrade posted brisk growth in its activities, as shown by the
23% increase in its revenue for 'Order-to-Cash' SaaS
subscriptions at constant exchange rates, a performance which
resulted in growth of 22% on a reported basis. The Company's
revenue for 2023 totaled €43.7 million, as evidenced by the
robust increase of 20% at constant exchange rates and 19% on a
reported basis.
This favorable trend is largely attributable to
three factors:
- Successful expansion in the United States: the North
American market continued to propel Sidetrade's growth, with a
substantial increase of 40% in revenues for 2023, reaching €12.1
million. Representing 28% of the Company's total revenue, North
America is now a pivotal pillar for growth.
- Increasing demand from multinational corporations: in
2023, Sidetrade significantly expanded its customer portfolio for
'Order-to-Cash' solutions, delivering growth of 48% in
subscriptions with multinational corporations on annual recurring
revenue (ARR) contracts in excess of €250,000. Such commitments now
account for 43% of Sidetrade's total subscriptions.
- Contribution from consolidating CreditPoint Software:
with H2 2023 revenue of €0.9 million, the CreditPoint Software
business had a 2% impact on annual growth.
It should be noted that all multi-year
Sidetrade contracts are routinely indexed to inflation (the
Syntec for Southern Europe, the UK CPI for Northern Europe and the
US CPI for the United States). This measure alters the total price
of SaaS subscriptions each year by reference to changes in these
price indices, without the need for contract renewals.
CreditPoint Software, an accretive
acquisition, now fully operationalOn June 30, 2023, Sidetrade
bolstered its all-round offering by acquiring the business of
CreditPoint Software, an American provider of credit risk
management solutions (see press release of July 3, 2023).
Consolidated into the Company’s financial statements on July 1,
2023, this business contributed additional revenue of €0.9
million in H2 2023.
All CreditPoint Software employees underwent a
fast onboarding process, fostering effective synergies within the
Company’s various departments. As a result, the deployment of
CreditPoint Software's solution within the single version of
Sidetrade's platform will be completed by end-H1 2024, delivering
all-new and readily available credit risk management
functionalities for initial clientele.
The acquisition agreement provided for an
initial payment (€0.5 million upon signing) followed by a
conditional payment after renewal in October 2023 of
CreditPoint Software's main customer (representing around 50% of
its revenues). This customer in the agriculture industry accounted
for €0.6 million-plus in annual subscriptions. In early
October 2023, Sidetrade not only renewed the contract for the
same amount (excluding orders specified above) but also
extended the initial contractual period from 36 to 60
months, increasing Total Contract Value (TCV) to €3 million. In
doing so, Sidetrade issued an earnout for the acquisition, totaling
€2 million. Weeks later, Sidetrade convinced this North American
leader to deploy additional Sidetrade solutions in both the US and
Australia, resulting in an additional contract of the same worth
and length. This new contract positions this customer among
Sidetrade's top five clients, with ARR in excess of €1
million. Note that no subsequent payment was incurred from this
second contract since its remit was outside the scope of
acquisition. Upon final settlement, the purchase price will
total €2.7 million, including the price to acquire services
(€0.2 million).
Strong increase in operating margin to 13%
with additional investment of €4 million
Marked progress in gross margin, at 81% of
revenue, above the SaaS industry average
Gross margin further improved, topping
out at 81% of revenue for 2023 (vs. 79% in 2022) and
93% (+1 pt vs. 2022) on SaaS subscriptions alone. In
2023, Sidetrade recorded a year-on-year incremental improvement
of €6.3 million in gross margin.
This excellent performance is fueled by the
contribution of SaaS subscriptions which now account for
98% of the Company's total gross margin, a business strategy
promoting Sidetrade's technological edge in AI, and tight cost
control despite an inflationary environment. Sidetrade continues to
demonstrate the profitability of its SaaS model, which generates
significant incremental gross margin, year after year.
Substantial increase in operating margin to
13% of revenue, despite additional investment of €4 million
Operating profit for 2023 totaled €5.8
million, representing an increase of 58% on the 2022 fiscal
year (€3.7 million). In 2023, gross margin, with a €6.3
million increase over 2022, amounts to €35.3 million. The
significant increase has more than made it possible to support the
Company’s investment policy (+€4.0 million vs. 2022), while
triggering an all-time surge in Sidetrade's operating profit.
Operating profit for 2023 includes a French
Research Tax Credit of €2.4 million (vs. €2.3 million in
2022) as well as activation of €0.2 million in marginal
R&D costs, i.e., 2% of R&D costs for the full
year.
As a result, operating margin increased to
13% vs. 10% in 2022, representing a 3-point gain
year-on-year.
Net profit up 67% to €5.6 million vs. €3.4
million in 2022
Net financial income for 2023 stood at
€0.4 million, up significantly from 2022, mostly due to
interest earned on short-term investments during the year.
Corporate income tax for 2023 was estimated at
€0.6 million, vs. €0.4 million in 2022.
All told, Sidetrade's net profit for 2023 was
€5.6 million, up 67%, demonstrating that a balance between
growth and profitability is achievable.
Strengthened financial position
The fiscal year 2023 enabled the Company to
considerably increase its operating cash flow to €8.7 million
(vs. €4.0 million in 2022), representing a record high over a
fiscal year.
Sidetrade reported €23.9 million in gross
cash at year-end, representing an increase of €3.6 million vs.
2022. As of December 31, 2023, Sidetrade also held 86,697 of its
own shares with a value of €14.0 million.
With a financial debt of €10.3 million (reduced
by €1.7 million), Sidetrade increased its investment capacity to
accelerate its expansion.
Distinguished CSR commitment: rated Gold by
EthiFinance and Silver by EcoVadis
In 2023, Sidetrade's commitment to Corporate
Social Responsibility (CSR) was formally outlined with the
publication of its first-ever CSR report. To that end, the Company
focused its efforts on four priorities:
- Sustainability, by implementing initiatives aimed at reducing
its carbon footprint;
- Collaborative excellence, by championing diversity and
innovation within its teams;
- Data security, by safeguarding the protection of data;
- Ethical business practices, by building relationships founded
on transparency and integrity.
Much like its initial assessment, Sidetrade's
carbon assessment for 2023 (scopes 1, 2 and 3) is the result of a
rigorous application of the Bilan Carbone® methodology and covers
all its worldwide operations. It heralds a new stage in the process
to cut greenhouse gas emissions, strengthening Sidetrade's position
as a responsible leader in the technology sector.
Both EthiFinance and EcoVadis have recognized
the accomplishments of Sidetrade's CSR strategy. First, EthiFinance
awarded the Company a Gold medal and a score of 76/100. Second,
Sidetrade secured a Silver medal with EcoVadis with an overall
score of 68/100. The latter places Sidetrade in the top 25% of
companies in sectors across the board. These awards underscore the
effectiveness of the Company's CSR strategy, reflecting its
commitment as a corporate citizen that is ready to face the
challenges of today and tomorrow.
Continued growth in 2024, on the back of an
unprecedented 2023
Over the past few quarters, Sidetrade has
consolidated its leadership with ambitions to become the world
leader in the fast-growing and rapidly globalizing Order-to-Cash
market.
Sidetrade looks ahead to the fiscal year 2024
with confidence, driven by an ambitious vision, and has the
resources to fulfill its targets. For 2024, Sidetrade confirms
revenue growth in the double digits. This positive momentum
illustrates the Company's ongoing commitment to innovate and
deliver increasingly impactful solutions, in turn, achieving
sustainable growth for employees, customers and partners alike.
Next financial
announcementFirst Quarter Revenue for 2024: April 16, 2024,
after the stock market closes.Investor relationsChristelle
Dhrif
00 33 6 10 46 72
00
cdhrif@sidetrade.comMedia relationsBecca
Parlby
00 44 7824 5055
84
bparlby@sidetrade.comAbout Sidetrade
(www.sidetrade.com)Sidetrade (Euronext Growth:
ALBFR.PA) provides a SaaS platform dedicated to securing and
accelerating cash flow. Sidetrade’s next-generation AI, nicknamed
Aimie, analyzes $6.1 trillion worth of B2B payment transactions
daily in the Sidetrade Cloud to predict customer payment behavior
and the attrition risk of more than 38 million buyers worldwide.
Aimie recommends the best operational strategies, intelligently
automates actions on the entire Order-to-Cash process, and
dematerializes customer transactions to enhance productivity,
performance, and working capital improvements. Sidetrade has a
global reach, with 315+ talented employees based in Paris, London,
Birmingham, Dublin, Houston, and Calgary, serving global businesses
in more than 85 countries. Amongst them: Bic, Biffa, Criteo,
Expedia, HPE, Insight Enterprises, KPMG, Manpower, Nespresso,
Nielsen, Nutrien, Siemens, Sodexo, Tech Data, UGI, Veolia, and
XPO.Sidetrade is a participant of the United Nations Global Compact
and adheres to its principles-based approach to responsible
business.For further information, visit us at www.sidetrade.com and
follow us on X @Sidetrade.
In the event of any
discrepancy between the French and English versions of this press
release, only the French version is to be taken into account.
- 2023 Annual results for Sidetrade: Robustness of the profitable
growth model confirmed
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