AI firm Sidetrade announces H1 2020 Results: 103% growth in net
profit while pursuing an offensive investment strategy
14% growth in revenue at the height of the pandemic
103% growth in net profit while pursuing an offensive
investment strategy
Strengthened financial position
Sidetrade (Euronext Growth: ALBFR.PA), the
Artificial Intelligence platform dedicated to accelerating company
revenue and cashflow, announces record first half results, with
income up 14% and net profit up 103%, while pursuing an offensive
investment strategy.
Olivier Novasque, chief executive officer of
Sidetrade, had this to say:
The Covid-19 crisis has revealed the soundness
of our foundations and our sustained potential for development.
Firstly, double-digit first half growth clearly demonstrates the
capacity of our SaaS subscription model to withstand even the
toughest of crises. Secondly, Sidetrade’s mission- enable companies
to secure and generate cashflow- clearly strikes a chord with
today’s hard-hit corporate finance departments. Our worldwide
success has been powered by farsighted investments, including AI
R&D and sales capacity. Despite the crisis, our bookings have
never been so high. Emboldened by these results, we will continue
our offensive investment policy.
Notwithstanding the economic uncertainties
ahead, the robustness of our foundations, the relevance of our
solutions, and the boldness of our investments are leading to the
best annual performance in Sidetrade’s history, and setting the
stage for strong continued growth in 2021 and beyond.”
14% growth in revenue at the height of the pandemic
Sidetrade(millions euros) |
S12020 |
S12019 |
Variation |
Revenue |
14.4 |
12.6 |
+14% |
Operating profit |
1.3 |
0.7 |
+94% |
Net profit |
1.1 |
0.5 |
+103% |
Non-audited 2020 consolidated data.
Following a particularly good Q1 (+14%),
Sidetrade kept up the momentum in Q2, with 15% organic growth
against the same period in 2019 (sales of €6.6M). Q2 turnover was
€7.5m, the highest in the company’s history. H1 revenue reached
€14.4 M, up 14% vs. the previous financial year.
More than ever, Sidetrade’s recurrent SaaS model
enables the company to stand strong. In fact, 89% of Sidetrade’s
revenues are recurrent. Furthermore, Sidetrade’s key account
attrition rate is one of the lowest in the cloud industry, a mere
4.2% in June 2020, vs. 5% in June 2019.
103% growth in net profit while pursuing an offensive
investment strategy
In the first half of 2020, Sidetrade’s operating
profit leapt 94% to €1.3M, reflecting increased revenues in the
period, and the leverage of the firm’s pure SaaS model. This
outstanding performance results from a €1.6M increase in gross
margin to €11.4M (vs. €9.8M in H1 2019), i.e. 79% of revenue. SaaS
subscriptions contribute 93% of this margin, demonstrating the
incremental profitability of this model.
H1 also saw an additional €1.6M investment in
additional sales and marketing resources (up 16%) to build future
growth.The unprecedented circumstances of the pandemic generated
€0.7M in savings in the period, due mainly to decreases in travel
expenses and sales bonuses.
Operating profit included a €0.9M research tax
credit (vs. €1.0M in H1 2019), as well as €0.10M in activation of
R&D costs (vs. €0.15 in H1 2019).
Driven by these dynamics, H1 net earnings
reached €1.1M, up 103%.
Strengthened financial position
As of 30 June 2020, Sidetrade’s financial
structure remained especially strong. Cash stood at €11.8M vs.
€5.3M on 31 December 2019). Debt is virtually nil (€0.3M).The
company holds 66,000 of its own shares, at an estimated value of
€4.6M as of 30 June 2020.
Given Sidetrade’s excellent H1 performance
despite the crisis, management has every confidence that FY2020
will be a year of double-digit growth.
Next
communication
2020 Q3 Revenue: 20
October 2020 (after stock market closes)
Investor
relations
Christelle Dhrif
+33 6 10 46 72
00
cdhrif@sidetrade.com
Media
relations
Daniel Blackman
+44 (0)7745 299
669
dblackman@sidetrade.com
About Sidetrade
(www.ww.sidetrade.com)
Sidetrade (Euronext
Growth: ALBFR.PA) accelerates company revenue and cashflow. Its
Artificial Intelligence, Aimie, is able to recognize and anticipate
customer behavior in order to recommend, in real time, the best
strategies for sales and finance teams. Aimie reinforces three
pillars of the customer journey: sales development, loyalty and
collection speed. Sidetrade has a global reach, thanks to its 250
talented employees based in Paris, London, Birmingham, Dublin, and
Amsterdam. Used in 80 countries, Sidetrade's technology enables
more than 2,700 businesses of all sizes and from all sectors to be
more competitive.
For further
information, visit us at www.sidetrade.com and follow us on Twitter
@Sidetrade.
In case of a discrepancy between the French and English
versions of this press release, only the French version should be
deemed valid.
- Sidetrade 2020 FY Results: 103% growth in net profit while
pursuing an offensive investment strategy
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