Sidetrade: Robust annual revenue growth
In 2023, Sidetrade exceeds its 2022 record bookings
- €11.2 million in new Annual Contract Value, up 9%
- With strong momentum in North America, up 22%
Robust revenue growth, up 20% at constant
exchange rates (19% on a reported basis)
- SaaS subscriptions up 23% (22% on a reported
basis)
- Surge in revenue in the United States, up 40%
- Increasing demand from multinational corporations, up
48%
Improvement in operating margin expected as
of 2023
Double-digit growth in sales confirmed for
2024
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 SaaS subscriptions up 23%
(22% on a reported basis).
Olivier Novasque, CEO of Sidetrade
commented:
"On the back of record 2022 bookings, in 2023,
we successfully stayed the course, achieving a 9% increase in new
Annual Contract Value coupled with an extension to the initial
contract period for new customers. As a result, 2023 marked a
record year in bookings for Sidetrade despite a difficult
macroeconomic environment. Given our business' inherent lag between
bookings and revenues, we now know that revenue growth in 2024 will
be in double digits.
Sidetrade delivered a remarkable 2023
performance in revenue terms, up 20% at constant exchange rates.
This additional growth is mainly due to our successful expansion in
the United States, with revenues up 40%, to more than €12 million,
representing almost a third of the Company's total revenue less
than three years after we launched business in the region. In
parallel, our business strategy targeting multinationals
significantly contributed to this momentum; subscription revenues
from this segment were up 48% and now account for nearly half of
total recurring revenue. With this in mind, our technological edge
in AI is increasingly recognized by major customers who are now
noticeably more mature in the field. This competitive advantage is
illustrated by our commercial success rate for contracts won in
preference over North American market leaders – increasing from 45%
in 2021 to 68% in 2022 and 79% in 2023.
In addition to considerably stepping up our
investment, 2023 also saw us relentlessly focusing on Group-wide
productivity and efficiency enhancements. This endeavor to optimize
performance should result in a higher-than-expected operating
margin, from the fiscal year 2023."
With €11.2 million in bookings, Sidetrade
exceeds its record in 2022, up 9%
|
Sidetrade (€m) |
2023 |
2022 |
Change |
|
New SaaS
subscriptions (New ARR) |
6.2 |
6.4 |
-4% |
|
Services bookings |
5.0 |
3.8 |
+31% |
|
New Annual Contract Value (ACV) |
11.2 |
10.3 |
+9% |
of which North America (ACV) |
4.1 |
3.4 |
+22% |
2023 information is from consolidated, unaudited data.
On a full-year basis, for the fiscal year
2023, Sidetrade succeeded in slightly exceeding its record
bookings achieved in 2022, in an uncertain economic environment.
New Annual Contract Value (ACV) totaled €11.2 million, up
9%. As a reminder, ACV bookings in 2022 posted record revenue
of €10.3 million, with impressive growth of 36% versus 2021. 2023
therefore set a record for Sidetrade bookings. The United
States contributed to Sidetrade’s 2023 growth, with a 22%
increase in bookings which accounts for 37% of total
bookings. Also of note is the start of a recovery in the
Northern Europe region (mainly the United Kingdom) with ACV
of €1.09 million in 2023 versus €0.36 million in 2022
(+200%), paving the way for additional growth in 2024.
New SaaS bookings totaled €6.18
million, remaining almost stable versus 2022 (-4%). Against a
backdrop of economic uncertainties, the Company is committed to
increasing visibility of its future revenues in contract
negotiations. To this end, in 2023, the initial period for new
contracts continued rising, up to 45.5 months versus 44.9
months the previous year. As such, Total Contract Value
(TCV) for 2023 slightly increased to €21.1 million
versus €20.7 million in 2022. In parallel, services
bookings, which are almost all invoiced within twelve months of
their signing, totaled €5.04 million, up 31% compared
to 2022 (€3.84 million). This strong increase is largely due to the
growing number of global deployment projects.
Overall, the 2023 bookings performance was due
to 1/ a business strategy kick-started eighteen months ago,
with a focus on companies generating $1 billion-plus revenue, 2/
increased recognition by multinationals of Sidetrade's
technological edge in artificial intelligence, particularly in
the United States, and 3/ the development of a comprehensive
Order-to-Cash software suite, resulting from a strategy of
continuous innovation.
In 2023, Sidetrade's appeal was powerfully
demonstrated by contracts won with industry giants including BIC,
Agfa, NielsenIQ, Dassault Systèmes, Bayer, Nutrien and Morningstar,
Inc. This wealth of leading brands not only serves as a testament
of confidence, but also a tangible validation of the relevance and
efficiency behind Sidetrade's solutions.
In the fiscal year 2023, bookings by new
customers ("New Business") accounted for 58% of the total
new bookings, while 20% of total new bookings were
driven by cross-selling. Lastly, upselling of
additional modules to existing customers represented the remaining
22% of bookings.
Robust revenue growth, up 20% at constant
exchange rates, with SaaS subscriptions up 23%
Sidetrade (€m) |
2023 |
2022 |
Change |
‘Order-to-Cash’ activities |
43.1 |
35.9 |
+20% |
of which SaaS Subscriptions |
36.6 |
30.1 |
+22% |
‘Sales & Marketing’ activities |
0.6 |
0.9 |
-33% |
Revenue |
43.7 |
36.8 |
+19% |
2023 information is from consolidated, unaudited data. Reported
basis
In 2023, revenue for 'Order-to-Cash' SaaS
subscriptions grew substantially, up 23% at constant
exchange rates and 22% on a reported basis.
Sidetrade's revenue for 2023
totaled €43.7 million, up 20% at constant exchange
rates and 19% on a reported basis.
This performance is attributable to three
factors:
- Successful expansion in the United States
Quarter after quarter in 2023, the United States
was a key growth driver for Sidetrade, posting revenues up 40%
on a full-year basis to €12.1 million. As a result of this
successful expansion, international markets now represent
58% of the Company's total revenue, already including
28% in North America. Going forward, the United States will
continue to be pivotal for Sidetrade's growth.
- Increasing demand from multinational corporations
Analysis of customer profiles for
'Order-to-Cash' activities is underpinned by impressive growth
of 48% in subscriptions with multinational corporations on
annual recurring revenue (ARR) contracts in excess of €250,000.
These subscriptions now account for 43% of Sidetrade's total
subscriptions and are expected to remain an important growth
driver in the quarters ahead.
- Consolidation of CreditPoint Software business
Effective July 1, 2023, the consolidation of the
CreditPoint Software business has positively contributed to
Sidetrade's performance. In H2 2023, CreditPoint generated revenue
of €0.9 million with 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.
Sidetrade looks ahead to the fiscal year 2024
with confidence and a clear vision, and has the resources to
fulfill its ambitions.
Next financial
announcementAnnual Results for 2023: March 27, 2024, after the
stock market closes.
Investor
relationsChristelle Dhrif
00 33 6 10 46 72
00
cdhrif@sidetrade.com
Media
relationsBecca
Parlby
00 44 7824 5055
84
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 the 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 300
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, Criteo, Manpower, Securitas, Randstad, Engie, Veolia,
Inmarsat, and Bidfood.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 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.
- Robust revenue growth, up 20% at constant exchange rates (19%
on a reported basis)
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