Sidetrade, a global AI-powered Order-to-Cash platform, announces accelerated growth in revenue for the first quarter of 2023, up 17% and driven by the excellent performance in SaaS subscriptions, up 21%, as well as a surge in activities in the United States.
Olivier Novasque, CEO of Sidetrade commented :
We kick-started 2023 with vigorous growth in our subscriptions, which were up 21% in the first quarter, reflecting continued momentum on the back of a successful 2022. This trajectory highlights the enormous potential of Sidetrade in the years ahead. On the one hand, our initial steps in the United States – which are already proving to be a robust growth driver – have exceeded expectations. On the other, our presence on both sides of the Atlantic, combined with our technological edge in Artificial Intelligence, enables us to increasingly achieve major successes with multinational corporations.
Sidetrade is scaling up and becoming a global-leading player in its industry. At a time when Gartner has recognized Sidetrade as a Leader in its Magic Quadrant for the second year in a row, we expect to sustain a double-digit growth trajectory throughout 2023 and beyond, while maintaining strong profitability, which forms the cornerstone of our balanced development model.
Bookings, in line, with nearly €1 million in new Annual Recurring Revenue
In Q1 2023, new Annual Recurring Revenue (“ARR”) for Sidetrade totaled €0.89 million. This figure is in line with the usual level of quarterly bookings, of around €1 million in new ARR (excluding exceptional records). As expected, bookings were down year-on-year, which were significantly boosted when Sidetrade signed the largest contract in its history (see press release of February 21 2022). This contract alone accounted for €1.36 million, representing 62% of the total €2.17 million posted in Q1 2022. Restated for this exceptional base effect, the level of bookings in new ARR increased by 10% (€0.89 million versus €0.81 million).
SaaS bookings are supplemented by €0.94 million of additional services on an annual basis (implementation, configuration, training, recurring services, etc.) compared with €1.09 million in Q1 2022, which also benefited from €0.3 million related to this exceptional contract. As a result, the Annual Contract Value (“ACV”) of new bookings in Q1 2023 was €1.83 million.
The initial contract period for new customers (excluding renewals) extended to 48 months, compared with 40.8 months in the same quarter of the previous fiscal year.
Sidetrade continued to increase international orders in Q1 2023, achieving more than 25% of bookings in the United States.
Accelerated growth in revenue, up 17%, with +21% from SaaS subscriptions
|Q1 2023||Q1 2022||Variation|
|of which SaaS Subscriptions||8.0||6.7||+21%|
|‘Sales & Marketing’ Activities||0.2||0.3||-29%|
2023 information is from consolidated, unaudited data..
In Q1 2023, ‘Order-to-Cash’ activities, which are a core business of the Company’s strategy (98% of total revenue), were up 19%, while SaaS subscriptions increased by 21%. As part of the Company’s strategy, ‘Sales & Marketing’ activities continued to decline in subscription terms, accounting for only €0.2 million in Q1 2023, i.e. 2% of total revenue. As a result, their impact on total growth will diminish in the quarters ahead.
Revenue for Q1 2023 totaled €9.8 million, representing an increase of 17% compared to the same period in the previous fiscal year which confirms Sidetrade’s solid start to the year. This accelerated growth is attributable to two factors:
Surge in activities in the United States, up 58%
In Q1 2023, Sidetrade’s revenue was underpinned by growth in international markets, which now represent 55% of total revenue, including 26% in North America. Sidetrade’s international expansion strategy is producing the desired results, particularly in the United States where revenues surged 58%. As such, the United States is now a robust growth driver for Sidetrade.
Impressive growth with multinational corporations, up 60%
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 more than 60% in Q1 2023.
Sidetrade’s presence in Europe and North America, combined with its technological edge in Artificial Intelligence, has enabled the Company to achieve multiple commercial successes with multinational companies that seek to deploy an ‘Order-to-Cash’ solution on a global scale. This market segment accounts for 43% of Sidetrade’s total subscriptions and is expected to remain an important growth driver in the months ahead.
Quarter after quarter, Sidetrade stands out as a global leader in the Order-to-Cash segment. Sidetrade was recently recognized as a Leader in the Gartner latest Magic Quadrant for Integrated Invoice-to-Cash Applications (see press release of May 8 2023), demonstrating the relevance of the Company’s solution which meets the needs of customers the world over.
With its business model based on 90% recurring revenue, Sidetrade is strongly positioned to address economic uncertainties with resilience. It should also be noted that all Sidetrade subscription contracts, including new contracts, provide an annual automatic price re-indexation clause based on the Consumer Price Index (CPI) for the relevant country. To that end, the Company’s pricing power protects its future revenue against inflationary pressures.