23 September 2020
Olivier Novasque, chief executive officer of Sidetrade, had this to say:
The Covid-19 crisis has revealed the soundness of our foundations and our sustained potential for development. Firstly, double-digit first half growth clearly demonstrates the capacity of our SaaS subscription model to withstand even the toughest of crises. Secondly, Sidetrade’s mission- enable companies to secure and generate cashflow- clearly strikes a chord with today’s hard-hit corporate finance departments. Our worldwide success has been powered by farsighted investments, including AI R&D and sales capacity. Despite the crisis, our bookings have never been so high. Emboldened by these results, we will continue our offensive investment policy.
Notwithstanding the economic uncertainties ahead, the robustness of our foundations, the relevance of our solutions, and the boldness of our investments are leading to the best annual performance in Sidetrade’s history, and setting the stage for strong continued growth in 2021 and beyond.”
14% growth in revenue at the height of the pandemic
| SIDETRADE GROUP (MILLION EUROS) |
S1 2020 | S1 2019 | VARIATION (%) |
|---|---|---|---|
| REVENUE | 14.4 | 12.6 | + 14% |
| OPERATING PROFIT | 1.3 | 0.7 | + 94% |
| NET PROFIT | 1.1 | 0.5 | + 103% |
Non-audited 2020 consolidated data.
Following a particularly good Q1 (+14%), Sidetrade kept up the momentum in Q2, with 15% organic growth against the same period in 2019 (sales of €6.6M). Q2 turnover was €7.5m, the highest in the company’s history. H1 revenue reached €14.4 M, up 14% vs. the previous financial year.
More than ever, Sidetrade’s recurrent SaaS model enables the company to stand strong. In fact, 89% of Sidetrade’s revenues are recurrent. Furthermore, Sidetrade’s key account attrition rate is one of the lowest in the cloud industry, a mere 4.2% in June 2020, vs. 5% in June 2019.
103% growth in net profit while pursuing an offensive investment strategy
In the first half of 2020, Sidetrade’s operating profit leapt 94% to €1.3M, reflecting increased revenues in the period, and the leverage of the firm’s pure SaaS model. This outstanding performance results from a €1.6M increase in gross margin to €11.4M (vs. €9.8M in H1 2019), i.e. 79% of revenue. SaaS subscriptions contribute 93% of this margin, demonstrating the incremental profitability of this model.
H1 also saw an additional €1.6M investment in additional sales and marketing resources (up 16%) to build future growth.
The unprecedented circumstances of the pandemic generated €0.7M in savings in the period, due mainly to decreases in travel expenses and sales bonuses.
Operating profit included a €0.9M research tax credit (vs. €1.0M in H1 2019), as well as €0.10M in activation of R&D costs (vs. €0.15 in H1 2019).
Driven by these dynamics, H1 net earnings reached €1.1M, up 103%.
Strengthened financial position
As of 30 June 2020, Sidetrade’s financial structure remained especially strong. Cash stood at €11.8M vs. €5.3M on 31 December 2019). Debt is virtually nil (€0.3M).
The company holds 66,000 of its own shares, at an estimated value of €4.6M as of 30 June 2020.
Given Sidetrade’s excellent H1 performance despite the crisis, management has every confidence that FY2020 will be a year of double-digit growth.
In its drive to provide businesses with digital technology to revolutionise their order-to-cash processes, AI leader Sidetrade has appointed Rob Harvey as its new chief product officer and a member of the firm’s executive committee (ExCom).
Commenting on his appointment, Mr. Harvey said:
I am thrilled to join such a talented product team dedicated to staying ahead of the curve and providing added value to our customers. This means investing in the latest AI technology, and delivering customer-centred solutions that are connected, collaborative, and configurable”.
Mr Harvey, also known as Bobby to his colleagues, will oversee Sidetrade’s product lifecycle, from strategy and development, through to launch. He will work hand-in-hand with Sidetrade’s chief technology officer Mark Sheldon to align development and business teams on innovative products which businesses need to prosper in today’s world.
Olivier Novasque, founder and CEO of Sidetrade, said:
Bobby understands customer expectations like no one else! He brings boundless creativity and immense business expertise to everything he does for Sidetrade. We’re delighted to have him on the ExCom”.
Mr. Harvey has worked at Sidetrade since 2012 in a number of leadership roles, most recently as global head of sales operations. Initially appointed as a customer success and presales consultant for the UK, he became head of presales in 2015, building teams in France, the UK, and the Netherlands. In 2018, he was appointed head of sales operations & enablement, extending his role to full sales support. Mr. Harvey has over 22 years’ experience in order-to-cash. Before joining Sidetrade, he held senior positions at Accenture, Verizon, and Orange Business Services.
The announcement follows a Q2 of record growth for Sidetrade. Mr. Harvey said:
Q2 was an incredible quarter for us, the best in Sidetrade’s history. This performance is even more rewarding as it was achieved in an unprecedented economic crisis, where most companies are in recession.”
Income and bookings achieved an unparalleled level this second quarter despite the overall state ofthe economy. Even with all of our staff teleworking, we still achieved the best quarter of our history interms of sales, with €6.1m in new contracts signed. This performance is the fruit of years of work oninnovation, especially AI. Additionally, Sidetrade’s position perfectly meets the needs of today’sbusinesses striving to boost and secure cashflow in an increasingly digital world. Current marketdynamics are actually strengthening our leadership position at home and abroad. I would once againlike to thank our teams for meeting the present challenges with creativity and dedication. I also wantto thank our customers for their continuing trust during difficult times.
Record €7.5m revenue growth demonstrates the resilience of the SaaS model
| Sidetrade (million euros)
Revenue |
2020 Q2
7.5 |
2019 Q2
6.6 |
Variation
+15% |