Sidetrade : Net profit up +12% with ongoing substantial investment
in the United States
First Half Year Results for 2022
New bookings up considerably: +42%58%
of new bookings in the United States, a new growth
driverRobust increase in Order-to-Cash SaaS subscriptions by
+19% and revenue by +11%Net profit up +12% with ongoing
substantial investment in the United StatesRock-solid
financial position with enhanced liquidity
Sidetrade, the global AI-powered
Order-to-Cash SaaS platform, today announces an
increase in its net profit (+12%) against a background of ongoing
investment in the United States.
Olivier Novasque, CEO of Sidetrade
“This first half clearly validates our
acceleration strategy kick-started in early 2021. In fact, we just
achieved the best half year in our history, regarding both our
bookings and our ability to deliver high profitability whilst
implementing a substantial investment policy, particularly in North
America. We can now confirm that the United States represents a
robust growth driver for the years ahead. Buoyed by sustained
commercial momentum and the recognition of Sidetrade by Gartner® as
one of three global Leaders for Integrated Invoice-to-Cash
applications, North America already accounts for more than half of
our business successes. These initial wins with American
multinational corporations, in preference over the two other
Order-to-Cash leaders, serve to strengthen our ambition. Sidetrade
has what it takes to become the leading player in terms of
acquiring new customers in a booming market where the inflationary
environment further incentivizes companies to accelerate their cash
generation. Sidetrade will naturally pursue its robust growth
strategy while remaining committed to its development model which
is supported by a firm balance between investments, growth and
New bookings up considerably: +42%In H1
2022, Sidetrade set a record for Order-to-Cash SaaS orders,
which will generate an additional €3.04 million in
Annual Recurring Revenue (“ARR”), compared with €2.14 million in H1
2021; a +42% increase. The total value of these new
subscription contracts over their initial contract periods
(excluding renewals and services) represents €9.95 million
of Total Contract Value (“TCV”) in H1 2022 versus €6.32 million in
H1 2021, a +57% increase.
To these SaaS bookings should be added €1.77
million of services on an annual basis (implementation,
configuration, training, recurring services, etc.), compared with
€1.37 million in H1 2021, a +29% increase. In total and
considering that almost all of these services will be invoiced over
the next twelve months, H1 2022 enables Sidetrade to add the
equivalent of €4.81 million in Annual Contract Value (“ACV”)
compared to €3.51 million in H1 2021, a +37% increase.
The initial contract period for new customers
(excluding renewals) rose to 44 months, compared with 36
months in the previous fiscal year. This length of contract period
further illustrates outsourcers’ trust in Sidetrade solutions and
increases visibility over future revenue. It should be noted that
as with all existing contracts, these new contracts include an
annual automatic price re-indexation clause based on changes in
price indices for the relevant country.
58% of new bookings in the United States, a
new growth driverIn H1 2022, international orders
represented more than 74% of all bookings.
Sidetrade outperformed its targets in North
America (to achieve more than one-third of its bookings in the
region by H2 2022) with 58% of bookings originating in the
United States, just one year after operations were launched in this
region. The Company signed significant contracts with large
American corporations such as a strategic IT services giant in Q1
2022 (see press release here) and Insight Enterprises (see press
release here) in Q2 2022.
Overall, in H1 2022, bookings by new customers
(“New Business”) accounted for 68% of the total
versus 55% on average in recent quarters. Cross-selling
represented 13% of total bookings, with the remaining 19%
of bookings accounted for Upselling of additional
modules to existing customers.
The United States has also notably impacted
the average size of new contracts (excluding Upselling).
Whereas in H1 2021, the average totaled €81,000 per year of
subscription (ARR), it will amount to €190,000 per year of
subscription in H2 2022.
Businesses must be prepared to respond to the
inflationary environment and face a twofold challenge:
consolidate their cash reserves, and generate productivity gains to
address salary increases and recruitment difficulties. This trend
is expected to continue over the next 12 to 24 months with an
increased risk of future recession, notably linked to multiple
hikes in interest rates. In this context, the management of
operating working capital, and particularly accounts receivable, is
a major challenge for businesses.
Robust increase in Order-to-Cash SaaS
subscriptions by +19% and revenue by +11%
of which SaaS Subscriptions
‘Sales & Marketing’ Activities
2022 accounts have been audited and will be certified after the
finalization of procedures required for the annual financial
‘Order-to-Cash’ Activities grew very
sharply by +17% in H1 2022, driven by 19% growth in SaaS
subscriptions. The growth in this recurring revenue is the
result of record bookings in the 2021 fiscal year, which will
continue to impact revenue growth throughout the 2022 fiscal
‘Order-to-Cash’ Activities, a core
business within the Company’s strategy since 2019, now represent
97% of total revenue in H1 2022.
The ‘Sales & Marketing’ Activities, which
have become secondary to Sidetrade’s activities, now account for
only 3% of total revenue in this half year and will
continue to play a less prominent role commercially, with estimated
revenue of €0.9 million at end-2022.
Total revenue grew by 11% in H1 2022, to
€17.8 million. This performance is supported by solid growth
drivers in international markets which now represent 51% of
total revenue, including 21% for North America.
Sidetrade’s economic model provides its business
with significant resilience, as 91% of its revenue is recurring,
representing a significant advantage in the current and future
All of these multi-year contracts are indexed to
inflation (the Syntec for Southern Europe, the UK CPI for Northern
Europe and the US CPI for the United States), which alters the
total price of SaaS subscriptions each year by reference to changes
in these price indices.
Sidetrade therefore has A robust pricing power
that protects the Company’s future revenue against uncertainties
and inflationary pressures. At present, Sidetrade perfectly
combines its sound fundamentals with a highly favorable growth
Net profit up +12% with ongoing substantial
investment in the United States
In H1 2022, Sidetrade’s operating profit
increased by 12% to €2.4 million, due to increased revenue and
the leverage of the SaaS model.
This excellent performance is owing to growth in
the gross margin of €1.5 million to €14.2 million (vs. €12.8
million for the same period last year); this amounts to 80% of
revenue (vs. 79% in H1 2021) with a rate of 93% on SaaS
During this period, Sidetrade increased its
investments by 20% (i.e., an additional €2.3 million), mainly in
the development of commercial operations in the US (€1.8
In addition, operating profit includes a French
Research tax credit of €1.3 million (vs. €0.9 million in H1 2021),
an innovation subsidy of €0.5 million as well as activation of
R&D for €0.17 million (vs. €0.1 million in H1 2021).
As a result of this momentum, net profit
reached €2.3 million, up 12%, demonstrating that investing is not
incompatible with growth and profitability.
Solid financial position with enhanced liquidity
On June 30, 2022, Sidetrade’s financial
structure continued to strengthen with a high cash position at
€22.4 million, versus €18 million on December 31, 2021. Moreover,
Sidetrade holds 85,000 of its own shares, for an estimated value of
€10.8 million, as of June 30, 2022.
Sidetrade has a €13 million line of credit,
subsequent to the acquisition of Amalto in April 2021 for this
amount (fixed rate at 1.1%).
On the back of its H1 2022 performance, the
Group’s management is confident in Sidetrade’s ability to deliver
double-digit growth in the 2022 fiscal year.
announcementThird Quarter Revenue for 2022: October 18, 2022,
after the stock market closes
+33 6 10 46 72
(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 $4,600 million 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, Biffa, Saint
Gobain, Air Liquide, Inmarsat, Insight Enterprises and Bidfood.For
further information, visit us at www.sidetrade.com and follow us on
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.
- Net profit up +12% with ongoing substantial investment in the
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