Sidetrade: Record quarter for bookings (+178%) and Robust growth in
revenue, up 17% overall
Record quarter for bookings
- All-time high for subscriptions with €2.41 million in
new Annual Recurring Revenue: +178%
- Unmatched performance in services with €1.7 million:
+133%
=> +158% growth in new Annual
Contract Value
Increasing demand from multinational
corporations
- Three global contracts won in Q2 2023
- Sidetrade's technological edge in AI recognized by
finance departments worldwide
Robust growth in revenue, up 17% overall with SaaS
subscriptions up 22%
Sidetrade, the global leader in
AI-powered Order-to-Cash applications,
today announces record bookings for the
second quarter of 2023 and accelerated growth in revenue, up 17%
overall, with SaaS subscriptions up 22%.
Olivier Novasque, CEO of Sidetrade
commented:
"Q2 2023 was a standout quarter for Sidetrade,
with record bookings, both in SaaS subscriptions and services.
Outstanding figures aside, the strategic decisions made over recent
years are now paying off for Sidetrade. First and foremost, on the
back of substantial AI investment over the last five years and the
creation of the world's first-ever Data Lake of B2B payment
transactions which powers our algorithms, we have an undeniable
technological edge that is hard to catch up with, and which is
highly appreciated by major customers."What's more, our North
American expansion, with some fifty new hires in the last two
years, has played a successful role in accelerating our growth. In
addition to direct bookings for this region, our support for
multinationals on both sides of the Atlantic in deploying their
Order-to-Cash solutions worldwide makes us a credible provider to
large corporations on an unprecedented scale. Our foothold in the
United States was key to the success behind the three global
contracts we signed over the quarter with Europe-based
multinationals. Quarter after quarter, Sidetrade continually
demonstrates its ability to become the world leader in the
fast-growing and rapidly globalizing Order-to-Cash market."
Record quarter with more than €4 million
in new Annual Contract Value
Sidetrade (€m) |
Q2 2023 |
Q2 2022 |
Change |
New SaaS subscriptions (New ARR) |
2.4 |
0.9 |
+178% |
Services bookings |
1.7 |
0.7 |
+133% |
New Annual Contract Value (ACV) |
4.1 |
1.6 |
+158% |
2023 information is from consolidated, unaudited data.
In SaaS bookings, Sidetrade delivered the best
quarterly performance in its history with a profit of €2.41
million in New Annual Recurring Revenue
("new ARR"), up 178% versus Q2 2022 (€0.87
million).
SaaS bookings are supplemented by €1.68
million of additional services (implementation,
configuration, training, recurring services, etc.) which are
generally invoiced within twelve months of their signing,
representing a +133% increase compared to Q2 2022
(€0.72 million).
As a result, the Annual Contract Value
("ACV") of new bookings in Q2 2023 was €4.1 million versus
€1.6 million in Q2 2022; a +158% increase.
In Q2 2023, the initial contract period
for new customers (excluding renewals) rose to
44.9 months, which attests to new customers'
confidence in Sidetrade. This extended contract period also
increases the economic model's strong predictability.
Ramp-up in new global
contractsQ2 2023 saw Sidetrade raise its international
profile by signing global contracts with Bayer AG, BIC and Dassault
Systèmes. Combined with its technological edge in AI, Sidetrade's
presence on both sides of the Atlantic was key to winning all three
tenders. These multinationals conduct a large part of their
business in the US and Europe, with separate finance departments
operating simultaneously on both continents.
Sidetrade's ability to align its seasoned,
regional salesforces in each region to the customer's local teams,
while coordinating discussions with purchasing at group level,
played a decisive role in these successes.
In addition, Sidetrade further cemented its
position following Gartner's recognition of the Company for the
second year in a row as one of the global leaders in the Magic
Quadrant for Integrated Invoice-to-Cash applications (see press
release of May 8, 2023).
On top of these three major contracts, the Group
signed new contracts in France and abroad with companies including
Border States (United States), Bunzl (US extension), Norauto
(France), UGI (Eastern Europe, five countries), Underwriters
Laboratories (United States) and Veolia North America (United
States).
Introducing CashApp, an AI-based
solution to revolutionize incoming
paymentsPart of Sidetrade's resounding success in Q2 is
due to the sale of its newly launched product, CashApp. Fully
integrated into Sidetrade's Order-to-Cash platform, CashApp
automates the reconciliation of customers' banked payments with
open invoices. Leveraging the capabilities of Sidetrade's machine
learning and deep learning algorithms, all relevant data retrieved
from incoming documentation – e.g., copies of checks and remittance
which often accompanies completed payments – is used to expedite
this correspondence. Sidetrade's cash application automates the
allocation of customer payment notices to open invoices in over 90%
of cases, avoiding the need for manual processes.
Harnessing the latest AI technologies, this new
module has started to garner attention from major players. Bayer,
for example, opted to deploy Sidetrade's CashApp solution
worldwide, despite already using cash application technology.
Conversely, BIC specifically selected CashApp for its Europe and US
teams.
Overall, in Q2 2023, bookings by new
customers ("New Business") accounted for
62% of the total new bookings.
Cross-selling represented 17% of total new
bookings, with the remaining 21% of
bookings driven by Upselling of
additional modules to existing customers.
The global contracts have also notably impacted
the average amount for new contracts (excluding
Upselling). In Q2 2023, the average totaled
€231,000 per year of subscription ("ARR") versus
€106,000 per year of subscription in Q2 2022.
Robust growth in revenue, up 17%
overall, with SaaS subscriptions up 22%
Sidetrade (€m) |
Q2 2023 |
Q2 2022 |
Change |
‘Order-to-Cash’ activities |
10.9 |
9.2 |
+18% |
of which SaaS subscriptions |
9.3 |
7.6 |
+22% |
‘Sales & Marketing’ activities |
0.2 |
0.3 |
-27% |
Revenue |
11.1 |
9.5 |
+17% |
2023 information is from consolidated, unaudited data.
In Q2 2023, 'Order-to-Cash'
activities, which are a core pillar of the
Company's strategy (98% of total revenue) were up
18%, while SaaS subscriptions
increased by 22%. As part of the Company's
strategy, 'Sales & Marketing' activities continued to decline
in subscription terms, accounting for only €0.2 million in Q2 2023,
i.e., 2% of total revenue. As a result, their impact on total
growth will diminish further in the quarters ahead.
Revenue for Q2 2023 topped the
€10 million mark for the first time in a quarter, totaling
€11.1 million, an increase of 17%
compared to the same period in the previous fiscal year. This
growth is attributable to two factors:
- Surge in revenue in the United States, up
37%
In Q2 2023, Sidetrade's revenue was underpinned
by growth in international markets, which now
represent 58% of total revenue, including
28% in North America. Sidetrade's international
expansion strategy is yielding impressive results, particularly in
the United States where revenues surged by 37%. As
such, the United States is now a robust growth driver for
Sidetrade.
- Impressive growth in subscriptions with multinational
corporations, up 35%
When analyzing customer profiles for
'Order-to-Cash' activities, the share of subscriptions with
multinational corporations on annual subscription contracts
in excess of €250,000, recorded impressive growth
of 35% in Q2 2023. This market segment
now accounts for 41% of Sidetrade's total
subscriptions and is expected to remain an important
growth driver in the months ahead.
On the back of its performance in the
first two quarters of 2023, the Group's management is confident in
Sidetrade's ability to deliver double-digit growth in the 2023
fiscal year.
Next financial
announcementFirst Half Year Results for 2023: September
12, 2023 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.
- Record bookings for the second quarter of 2023 and accelerated
growth in revenue, up 17% overall, with SaaS subscriptions up
22%.
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