Data Lake Request a demo

Strong bookings momentum

In Q2 2021, Sidetrade saw a jump in bookings representing an additional €1.2m in annual recurring revenue (ARR) vs €0.94m in Q1 2021. On top of this, it earned €1.05m from set-up and training services for new customers. Overall, Sidetrade gained the equivalent of €2.25m in annual contract value (ACV).

In Q2 2021, Sidetrade onboarded several new global customers due to its capacity to roll out solutions internationally such as XPO Logistics, Tarkett, Sodexo, and Veolia. In fact, Sidetrade is particularly well-positioned, both technologically and geographically, and has recently been selected by Veolia Group and its subsidiaries, as its exclusive global supplier for digital dunning and payment dispute resolution.

Promising US market kick-off

In other news, Sidetrade’s North America operations have had a strong start, representing over a third of new bookings this quarter. Sidetrade has gained a firm foothold in the North American market, through crossselling, bringing on new customers Tarkett US and XPO Logistics US (subsidiaries of European groups who are successful Sidetrade customers), or via upselling to existing customers, such as Tech Data US, Bunzl Canada, and Expedia.

Furthermore, the new Augmented Invoice module, a paperless billing solution developed by Texas-based firm Amalto, recently acquired by Sidetrade, contributed to clinching deals this quarter with US industrial leaders including ProMach (packaging machinery), Imperative Chemical Partners (specialty chemicals) and Johnston Equipment (material handling equipment).

As of February 2021, Sidetrade has 22 employees in North America (11 from Amalto), with a 9-person sales force consisting of 2 managers, 1 pre-sales, and 6 reps, all seasoned O2C experts. Under Sidetrade’s Fusion100 growth plan, this salesforce is expected to double by the end of the financial year.

SaaS recurring revenue up 19%; overall income up 14%

2021 information is from consolidated, unaudited data.

Q2 2021 saw strong growth, with SaaS subscription business up 19% and overall income up 14%.

This sustained progress is now backed by solid growth drivers outside Sidetrade’s home market, which now represent 47% of total revenues, including 16% for North America.

The April 2021 Acquisition of Amalto, a Texas based leader in paperless B2B transaction solutions, has enriched Sidetrade’s product offering, with Augmented Order and Augmented Invoice modules. These modules contributed to the success of Q2 2021, and are expected to dramatically increase sales in the years to come, since they enable companies to meet new requirements for paperless B2B transactions coming into force in Europe and the USA.

Moreover, in June 2021, Sidetrade was cited in a Gartner report on integrated Invoice-to-Cash solutions, yet another sign of Sidetrade’s leadership position in a global market estimated to be worth $10bn.

Given the strength of the first half of the year, Sidetrade’s management confidently projects double-digit growth for FY2021.

Veolia Group, which aims to be the benchmark company for ecological transformation, has made digitalization a core element of their strategic plan, Impact 2023. This is why, in 2018, they opted for a comprehensive software suite to support the transformation of their finance department.

Cashflow generation, which has been among Veolia Group’s top financial objectives, has become even greater since the onset of the COVID crisis. At the height of the crisis, insight into our customer exposure and control of our DSO became even more critical, as these elements have a direct impact on our cash generation explained Patrick Houssin, Head of Group Working Capital Optimization, Veolia.

A request for proposal was launched in August 2020 for a complete Credit Management solution (collection, dispute settlement, and risk assessment). Beyond technical features, the solution had to be suitable for BUs varying greatly in size, (from a few million euros of revenue to several billions), with different operations, in over 50 countries.

Claude Laruelle, Group CFO at Veolia, commented: We picked Sidetrade for two reasons: firstly the advanced features of their solution, based on AI, machine learning and automation, which increase the efficiency of dunning and dispute-resolution processes; and secondly, the quality of a partnership with a firm that has an international footprint, and solid experience with large global groups.

Sidetrade’s experience rolling out complex international projects was a decisive factor. Our aim was to choose not just a technical solution, but also a solid partner, with experience in projects of this scale, who could support us in our different locations, and help guide our technological development, added Patrick Houssin.

Days Sales Outstanding (DSO) is a critical issue for a group of Veolia’s size, with revenue of €27bn. In fact, reducing DSO by even one day can bring in an additional €100m in cash.

Olivier Novasque, CEO and founder of Sidetrade commented: Being selected by Veolia as the leading technology in international O2C management is extremely gratifying for us. We are indeed proud to contribute to the success of their Impact 2023 strategic plan. Furthermore, analyzing the payment behavior patterns of millions of businesses worldwide in this ecosystem will enable us to further enhance the effectiveness of our algorithms, and our technological lead in artificial intelligence.

This worldwide partnership comes just after Sidetrade’s 12 April acquisition of Amalto, a leader in paperless B2B transactions in North America. This acquisition enriches Sidetrade’s O2C offering, and helps accelerate market penetration in the US and Canada.

The report, titled ‘2021 Market Guide for Integrated Invoice-to-Cash Applications’, is the first of Gartner industry-leading reports dedicated entirely to the Invoice-to-Cash applications (also known as Order-to-Cash), signaling the increasing market interest in this space and the technologies available within it.

The potential for the $10bn global Order-to-Cash market is significant, with less than 5% of businesses that could benefit from Order-to-Cash technology currently leveraging it, according to Midcap Partners.

Founded in 2000, Sidetrade is a world-leading Order-to-Cash software solutions provider leveraging AI technology. IDC this year ranked Sidetrade as a “major player” among vendors of “Worldwide SaaS and Cloud-Enabled Accounts Receivable Automation Applications” in its release of their MarketScape dedicated to Order-to-Cash.

Olivier Novasque, Founder and CEO of Sidetrade commented: The Order-to-Cash space is an increasingly high interest area, further heightened by the Covid-19 crisis which forced businesses to truly recognise the importance of cash flow for survival and turn to technology such as Sidetrade’s to accelerate and secure cash flow.

Sidetrade is a world leader in the Order-to-Cash market, and we are delighted to be recognised by yet another industry behemoth such as Gartner as we continue on our mission of helping organisations unlock customer value and gaining an advantage over their competitors.
~

Gartner, ‘Market Guide for Integrated Invoice-to-Cash Applications’, Nisha Bhandare, May 17, 2021
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Bookings remain very strong

In Q1 2021, Sidetrade saw a very sharp rise in new bookings, representing additional Annual Recurring Revenue of €0.94m vs €0.27m in Q1 2020 (period hit hard by the sudden halt in the economy due to the first lockdown).

This sharp rise follows up on the record bookings posted in the last three quarters of 2020.

New customers represent 74% of these bookings, against an annual mean of 55% in 2020. In Q1 2021, Sidetrade signed on prestigious firms in a range of industries, such as Konica Minolta (IT equipment), Antargaz (Energy), Tarkett (Construction materials), MIQ (Media-advertisement), Distrupol (Chemistry) and Klépierre (Property).

The mean commitment period for these new subscribers is 36.2 months, representing €2.46m in SaaS contracts (vs. €0.83m in 2020), as well as €0.81m worth of new bookings for professional services.

14% rise in SaaS recurring revenue, 10% rise in income

2021 information is from consolidated, unaudited data.

SaaS subscriptions have maintained momentum with 14% growth in Q1 2021.

Sidetrade posted revenue of €7.5m in the period, up 10%. Beyond strong growth in SaaS subscriptions, overall growth was slightly impacted by less dynamism in services, due to delays in project implementation stemming from the lockdown situation in some countries.

That Sidetrade is riding out the crisis so well can be explained by the resilience of its SaaS business model- 89% of Sidetrade’s income is Annual Recurring Revenue.

As a reminder, on 12 April 2021, Sidetrade announced the definitive acquisition of Amalto, a Texas-based leader in paperless Order-to-Cash operations. Amalto will be consolidated into Sidetrade’s accounts as of 1 April 2021.