Information Technology
Sidetrade's 2023 Results: Robustness of the profitable growth model confirmed
Olivier Novasque, CEO of Sidetrade commented:
In 2023, despite economic challenges, , which
, representing an increase of 9%. This performance was driven in particular by the momentum of
, 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 . slightly increased to . Services bookings were up 31%, notably thanks to the growing number of global deployment projects.
Key factors behind this success were Sidetrade's targeting companies generating $1 billion-plus revenue, and , 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.
In 2023, Sidetrade posted brisk growth in its activities, as shown by the , a performance which resulted in growth of 22% on a reported basis. The Company's revenue for 2023 totaled and 19% on a reported basis.
This favorable trend is largely attributable to three factors:
It should be noted that (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.
On 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
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 provided for an (€0.5 million upon signing) followed by a 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 (excluding orders specified above) but also 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 . Note that no subsequent payment was incurred from this second contract since its remit was outside the scope of acquisition. Upon final settlement, , including the price to acquire services (€0.2 million).
, topping out at (vs. 79% in 2022) and (+1 pt vs. 2022) . In 2023, Sidetrade recorded a in gross margin.
This excellent performance is fueled by the contribution of which now account for , 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.
Operating profit for 2023 totaled on the 2022 fiscal year (€3.7 million). In 2023, , with a €6.3 million increase over 2022, amounts to . The significant increase has more than made it possible to support the Company's investment policy ( vs. 2022), while triggering an all-time surge in Sidetrade's operating profit.
Operating profit for 2023 includes a of (vs. €2.3 million in 2022) as well as activation of in marginal R&D costs, i.e., .
As a result, vs. 10% in 2022, representing a .
for 2023 stood at , up significantly from 2022, mostly due to interest earned on short-term investments during the year.
Corporate income tax for 2023 was estimated at , vs. €0.4 million in 2022.
All told, Sidetrade's net profit for 2023 was up 67%, demonstrating that a balance between growth and profitability is achievable.
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 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),
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:
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 ® 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.
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. . 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.
First Quarter Revenue for 2024: April 16, 2024, after the stock market closes.
Christelle Dhrif 00 33 6 10 46 72 00
cdhrif@sidetrade.com
Becca Parlby 00 44 7824 5055 84
bparlby@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.
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