Sidetrade Annual Results for 2021, a blockbuster year
Soundness of the profitable growth model confirmed
- Strong growth in SaaS revenue, up 16% in 2021
- New bookings record set, with €8.28 million in new
contracts
- Very sharp increase in operating margin, to 15.3%
- Operating profit (+41%) and net profit (+38%) at all-time
highs
- Reinforced financial structure
Sidetrade sustains its growth momentum in 2022, with
pricing power bolstered by inflationary trends
Sidetrade, the AI-powered Order-to-Cash
SaaS platform, announced strong growth in SaaS revenue of 16% in
2021 and a record high performance for the year, with an impressive
increase of 41% in operating profit and 38% in net profit.
Olivier Novasque, CEO of Sidetrade
commented:
“2021 was a blockbuster year for Sidetrade: an
extraordinary fourth quarter for bookings, operating margin above
15% for the year, and operating profit and net profit at record
highs and well above expectations. Looking beyond these figures,
Sidetrade’s unique model - which maintains a healthy balance
between growth and profitability - once again proved its relevance
in a very uncertain political and economic environment. Unlike many
US software vendors, whose growth remains highly capital-intensive
and thus more susceptible to market volatility, Sidetrade has
stayed on the offensive with its growth strategy while building on
the resilience of its sound fundamentals.
“Our first commercial successes in the US
provide clear confirmation of the strategy set out in our Fusion100
plan. In addition, the rise in global inflation makes our solutions
for securing and accelerating cash flow generation even more
essential for businesses. As such, we believe that our pricing
power will be positively correlated with higher inflation: almost
all our SaaS subscription contracts are automatically indexed
annually to price changes, and the return on investment of our
solutions is directly proportional to the financial benefits of
cash acceleration. In short, we are in excellent shape for 2022 and
very confident that it will be another record-breaking year for
Sidetrade.”
Strength of the profitable growth model confirmed
Sidetrade(million euros) |
2021 |
2020 |
Variation |
SaaS revenue |
27.0 |
23.2 |
+16% |
Revenue |
32.6 |
29.2 |
+12% |
Operating Profit |
5.0 |
3.6 |
+41% |
Net Profit |
4.7 |
3.4 |
+38% |
2021 accounts have been audited and will be certified after
finalization of procedures required for the annual financial
report.
Strong growth in SaaS revenue, up 16% in
2021, and new bookings record set
New subscription contracts in 2021 amounted to
€4.75 million in Annual Recurring Revenue (vs
€4.16 million in 2020), an increase of 14%. In addition,
€3.53 million of services (implementation, configuration,
training, recurring services, etc.) were sold (vs €2.87 million in
2020). In total, 2021 bookings reached €8.28 million in Annual
Contract Value vs €7.03 million in 2020, an 18%
increase.
In the fourth quarter of 2021, Sidetrade set a
new record for SaaS bookings, which will generate
€1.67 million in ARR, compared to €1.54 million in Q4
2020. The total value of these new subscription contracts over
their initial contract periods (excluding renewals) represents
€4.15 million of Total Contract Value.
To these SaaS orders should be added €1.38
million of services on an annual basis, compared with
€0.98 million in Q4 2020. The Annual Contract Value of these
bookings was €3.05m in Q4 2021 vs €2.52m in Q4 2020, a 23%
increase.
In 2021, the initial contract period for
new customers remained stable at 36.25 months (excluding
renewals).
Throughout 2021, SaaS subscription revenue
continued to grow significantly at +16%, reaching
€27 million. Regarding annual revenue, Sidetrade generated
€32.6 million in 2021, up 12% against the previous year.
Sidetrade’s SaaS recurring revenue model has
once again proven its resilience. For the first time, Sidetrade has
achieved 90% recurring revenue for the entire year: one of
the highest levels in the software industry.
This strong progression was supported by solid
growth in international markets, which now represent 46% of
annual revenue, including 15% for North America, a new business
region for the company.
Very sharp increase in the operating margin,
to 15.3% (vs 12.2% in 2020)
Operating profit (+41%) and net profit (+38%)
at all-time highs
Operating profit reached €5.0 million in
2021, up 41% compared with 2020 (€3.6 million). This is a
particularly impressive improvement and can be explained by a €2.7
million rise in the gross margin, reaching €25.7 million for the
year, i.e., a gross sales margin topping out at 79%. SaaS
subscriptions played a significant role in this excellent
performance and now account for 97% of the company’s total gross
margin.
For the first time, the gross margin for SaaS
subscriptions alone reached a record 93% (vs 92% in 2020),
demonstrating all the benefits of Sidetrade’s pure SaaS model,
which generates incremental profitability as the company
grows.
In 2021, Sidetrade stepped up its investments to
€1.8 million, of which 80% were earmarked for business development
in North America. The first commercial successes in this region
provide clear confirmation of the offensive growth strategy set out
in the Fusion100 plan.
With a record operating profit of €5 million,
operating margin shot up to 15.3% from 12.2% in 2020: a gain
of nearly 3 points in one year.
2021 operating profit includes a French Research
tax credit of €2.2 million (vs €1.8 million in 2020), as well as
activation of €0.2 million in marginal R&D costs (virtually
identical to 2020).
Corporate income tax is estimated at €0.3
million in 2021 vs €0.05 million in 2020.
Finally, 2021 net profit was €4.7
million, up 38%, for a net margin of 14.5% (vs 11.6% in
2020).
Reinforced financial structure
Sidetrade further strengthened its financial
structure, with €18 million in gross cash at year-end (vs
€14.3 million in 2020). Sidetrade also holds 86,000 of its own
shares with a value of €14.7 million as of December 31, 2021.
Sidetrade’s financial debt stands at €13.1
million, giving it significant investment capacity to
accelerate its expansion.
Sustained growth momentum in 2022 with
pricing power bolstered by inflationary trends
2021 results confirm the relevance of
Sidetrade’s strategy, guided by the Fusion100 plan which
targets $100 million in revenue by 2025.
Sidetrade looks ahead to the 2022 financial
year with confidence and a clear vision and has the resources to
fulfill its ambitions.
We also note that Sidetrade does not have any
customers, suppliers or employees in Ukraine or Russia.
Next communication
2022 First Quarter
Revenue: 10 May 2022, after stock market closes
Investor
relationsChristelle Dhrif
+33 6 10 46 72
00
cdhrif@sidetrade.com Media relations
Rebecca
Parlby
+44 7824
505 584
bparlby@sidetrade.com
About
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 $4.6 trillion worth of B2B payment
transactions daily in the Sidetrade Cloud to predict customer
payment behavior and attrition risk of more than 21 million
companies worldwide. Aimie recommends the best cash collection
strategies, intelligently automates actions on the Order-to-Cash
process, and dematerializes customer transactions to enhance
productivity, performance and working capital
management. Sidetrade has a global reach, with 250 talented
employees based in Paris, London, Birmingham, Dublin, Houston, and
Calgary, serving global businesses in more than 85 countries.
Amongst them: Tech Data, KPMG, Nespresso, Hearst, Expedia,
Manpower, Securitas, Randstad, Engie, Veolia, Inmarsat, and
Bidfood.
For further
information, visit us at www.sidetrade.com and follow us on Twitter
@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.
- Sidetrade Annual Results for 2021: Operating profit (+41%) and
net profit (+38%) at all-time highs
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