As announced in the May 2, 2024 press release, Sidetrade’s tender offer for SHS Viveon AG has been posted in the Federal Gazette, an official promulgation and announcement organ of the Federal Republic of Germany, today. The price of this friendly offer is €3.00 per SHS Viveon share in cash.
Planned milestones for Sidetrade’s acquisition of SHS Viveon AG
| May 7, 2024 | Tender offer opens |
| May 9, 2024 | Delisting of SHS Viveon AG proposed to the Munich Stock Exchange |
| June 17, 2024 | Tender offer closes |
The tender offer is not subject to reaching a minimum acceptance threshold.
The tender offer documentation is available on www.sidetrade.com in German (https://www.sidetrade.com/wp-content/uploads/2024/05/public-tender-offer-shs-viveon-de.pdf) and in English (https://www.sidetrade.com/wp-content/uploads/2024/05/public-tender-offer-shs-viveon.pdf).
Copies of the German language binding document may be obtained at uebernahmeangebot@oddo-bhf.com.
Sidetrade will support the delisting of SHS Viveon AG’s shares from the open market m:access of the Munich stock exchange. Post delisting, SHS Viveon AG shares will not trade anymore in Germany (either Frankfurt or Munich).
Sidetrade is assisted by King & Spalding LLP as legal advisor on the transaction and ODDO BHF SE as financial advisor.
Following the execution of binding agreements with shareholders of SHS Viveon AG to acquire shares at a price of €3.00 each, as announced in the April 16, 2024 press release, Sidetrade has secured 1,702,407 shares, representing 68.4% of SHS Viveon AG’s outstanding share capital as follows:
- 43.0% of the SHS Viveon shares already acquired.
- 5.7% of the SHS Viveon shares set to be acquired in the coming days.
- 19.7% of the SHS Viveon shares to be acquired at subsequent dates at the latest in July 2024.
Sidetrade plans to open its public tender offer on May 7, 2024, to acquire the remaining shares of SHS Viveon AG at €3.00 per share in cash, representing a 53% premium over the 1-year VWAP (Volume-weighted average price) of SHS Viveon AG (€1.96 per share) as of April 15, 2024.
SHS Viveon AG’s supervisory board signed a business combination agreement with Sidetrade on May 1, 2024, and supports Sidetrade’s take-over plans.
Planned milestones for Sidetrade’s acquisition of SHS Viveon AG
| May 6, 2024 | Tender offer posted in the Federal Gazette |
| May 7, 2024 | Tender offer opens |
| May 9, 2024 | Delisting of SHS Viveon AG proposed to the Munich Stock Exchange |
| June 17, 2024 | Tender offer closes |
The tender offer is not subject to reaching a minimum acceptance threshold.
The tender offer documentation will be available in German and in English on May 6, 2024 on www.sidetrade.com. Copies of the German language binding document may be obtained by email at uebernahmeangebot@oddo-bhf.com.
Certain SHS Viveon AG’s shareholders entered into a binding agreement with Sidetrade to transfer 19.7% of their shares at subsequent dates at the latest in July 2024.
Upon completing these acquisitions, Sidetrade will become the majority shareholder and assume control of SHS Viveon AG. Sidetrade will support the delisting of SHS Viveon AG’s shares from the open market m:access of the Munich stock exchange. Post delisting, SHS Viveon AG shares will not trade anymore in Germany (either Frankfurt or Munich).
Sidetrade is assisted by King & Spalding LLP as legal advisor on the transaction and ODDO BHF SE as financial advisor.
About SHS Viveon AG, a German leader in credit risk & compliance management software applications
Founded in 1991 and headquartered in Munich, Germany, SHS Viveon AG offers applications designed to enable risk, credit, and compliance management teams to automatically identify, assess, and hedge risks in a flexible, digital process. It simplifies access to all relevant data from any system, improves analysis and simulation, and enables better business decisions.
In 2023, SHS Viveon AG reported revenues of €8.8 million. SHS Viveon AG’s customer portfolio currently comprises 80 businesses including Fortune 100 companies.
Sidetrade’s 2023 Annual Report provides a synthesis of its environment, activities, strategy, governance, and looks back over the events that marked the financial year. It establishes the link between financial and non-financial performance.
The document is available on the company’s website here.
Philippe Gangneux, CSR Ambassador and Chief Financial Officer of Sidetrade, commented:
Given the growing interest in our activities and our international development, the publication of an annual report linking financial and non-financial performance was an important challenge. This represents a new initiative in our transparent communication approach, and shedding light on our expansion combining growth and profitability.
Sidetrade today announces that it has entered into binding agreements with shareholders of SHS Viveon AG to acquire more than 50% of all outstanding shares in SHS Viveon AG at a price of €3.00 per share.
The number of shares Sidetrade has the intention to acquire is 1,462,489 shares, representing 58.73% of the outstanding share capital of SHS Viveon AG:
- 43.30% of the SHS Viveon shares would be acquired by Sidetrade in the coming days; and
- 15.43% at subsequent dates in June and July 2024.
The price of €3.00 per share represents a 53% premium over the 1-year VWAP (Volume-weighted average price) of SHS Viveon AG (€1.96 per share) as of April 15, 2024.
Sidetrade is also currently considering acquiring additional SHS Viveon AG shares from existing shareholders at €3.00 per share.
In addition to the aforementioned acquisitions, Sidetrade is considering launching a public tender offer to acquire the remaining shares of SHS Viveon AG also at €3.00 per share.
Upon completion of these acquisitions, Sidetrade would become the majority shareholder of SHS Viveon AG owning a controlling stake and would take the appropriate measures to delist SHS Viveon’s shares from public trading.
Sidetrade is assisted by King & Spalding LLP as legal advisor on the transaction and ODDO BHF SE as financial advisor.
About SHS Viveon AG, a German leader in credit risk & compliance management software applications
Founded in 1991 and headquartered in Munich, Germany, SHS Viveon AG offers applications designed to enable risk, credit, and compliance management teams to automatically identify, assess, and hedge risks in a flexible, digital process. It simplifies access to all relevant data from any system, improves analysis and simulation, and enables better business decisions.
In 2023, SHS Viveon AG reported revenues of €8.8 million. SHS Viveon AG’s customer portfolio currently comprises 80 businesses including Fortune 100 companies.
Olivier Novasque, CEO of Sidetrade commented :
On the back of solid performance in the 2023 fiscal year, we kick-started 2024 with triple-digit growth in our bookings, both in terms of new subscriptions (up 108%) and services (up 127%). This quarter’s commercial successes, particularly in the United States with global leaders in their field, fully validate our strategy to cement our leader position in artificial intelligence by hiring the best-in-class talent to grow our priority customer base of multinationals.
Sidetrade delivered first quarter revenue in line with that of the 2023 fiscal year, posting 20% growth in revenue and subscriptions alike. These double-digit figures are driven both by the United States (+40%) and an increase in our subscription revenues with companies generating $1 billion-plus revenue (+24%). Looking at previous quarterly performance in 2023, we know that Q1 bookings have the greatest impact on revenue for the current year. Against this backdrop, now more than ever, we are confident we will achieve double-digit revenue growth for the fiscal year 2024.
Robust growth in bookings: ACV up 117%
| Sidetrade (€m) |
Q1 2024 | Q1 2023 | Change |
| New SaaS subscriptions (New ARR) | 1.85 | 0.89 | +108% |
| Services bookings | 2.13 | 0.94 | 127% |
| New Annual Contract Value (ACV) | 3.98 | 1.83 | +117% |
2024 information is from consolidated, unaudited data.
In Q1 2024, Sidetrade posted an outstanding performance, more than doubling its bookings. Over the period, the Group added €3.98 million in New Annual Contract Value (ACV) versus €1.83 million in Q1 2023, representing an increase of 117%. First-quarter bookings came in close to the Company’s all-time quarterly record – achieved in Q2 2023 – with €4.1 million in ACV.
For the third consecutive quarter, the United States acted as a key growth driver, accounting for 60% of total bookings. In the first quarter of 2024, Sidetrade notably secured two major contracts in North America. The first of these was signed with a globally recognized player in hygiene, food safety and public healthcare, with revenue of $15 billion and a listing on the New York Stock Exchange (NYSE). This new customer will run wide-scale implementation of Sidetrade’s e-invoicing solution, directly integrating its invoices in the information systems of their main customers in the United States. A key factor in this decision was the ability of Sidetrade’s solution to process work orders and complex invoices within digital portals utilized by major buyers. This contract represents the most significant transaction for Sidetrade’s e-invoicing solution, as a result of the Amalto acquisition (see press release of April 12, 2021). The second major contract was agreed with the largest professional equipment rental provider the world over, posting revenue of $14 billion and listed on the NYSE. After being the main customer for a competing vendor, this giant chose Sidetrade because of its technological edge in AI, in addition to the excellence of its teams.
New SaaS bookings (New ARR) totaled €1.85 million, up 108% from the same period in the 2023 fiscal year. In Q1 2024, Total Contract Value (TCV) increased to €6.49 million compared to €2.78 million in the same period, in the 2023 fiscal year, representing a surge of 134%. Parallel to this, services bookings, with almost all invoiced within twelve months of their signing, totaled €2.13 million, up 127% versus Q1 2023 (€0.94 million). This strong increase is mainly due to the growing number of deployment projects signed worldwide, as illustrated by the two new above mentioned American customers.
Overall, the first-quarter 2024 performance reflects the upward trend in bookings observed during the 2023 fiscal year, further validating the relevance of the Company’s strategic decisions, namely: 1/ a business strategy kick-started twenty-four months ago, with a focus on companies generating $1 billion-plus revenue, 2/ an increased recognition by multinationals of Sidetrade’s technological edge in AI, particularly in the United States, and 3/ the development of a comprehensive Order-to-Cash software suite, resulting from a strategy of continuous innovation.
Strong revenue increase of 20%, with SaaS subscriptions up 20%
| Sidetrade (€m) |
Q1 2024 | Q1 2023 | Change |
| ‘Order-to-Cash’ SaaS subscriptions | 9.6 | 8.0 | +20% |
| Revenue | 11.8 | 9.8 | +20% |
2024 information is from consolidated, unaudited data. Reported basis
In Q1 2024, Sidetrade reported strong growth in revenue for ‘Order-to-Cash’ SaaS subscriptions, up 20%.
The Company’s revenue for the first quarter of 2024 totaled €11.8 million, also reporting an increase of 20%.
On a Group-wide basis, this double-digit growth is attributable to:
- Robust revenue growth in the United States, up 40%
Quarter after quarter, the United States is a growth driver for Sidetrade, posting revenues up 40% to €3.6 million in Q1 2024. Successful US expansion has meant that, for the first time, international markets account for 60% of the Company’s total revenue, with 31% coming from North America. Going forward, the United States will continue to be pivotal for Sidetrade’s growth. - Ever-increasing demand from multinational corporations
Analysis of customer profiles for ‘Order-to-Cash’ activities is underpinned by growth of 24% in subscriptions with multinational corporations on annual recurring revenue (ARR) contracts in excess of €250,000. These subscriptions now account for 45% of Sidetrade’s total subscriptions and are expected to remain an important growth driver in the quarters ahead. - Consolidation of CreditPoint Software business
Effective July 1, 2023, the consolidation of the CreditPoint Software business has positively contributed to Sidetrade’s performance. In Q1 2024, CreditPoint generated revenue of €0.45 million, with a 4% impact on quarterly growth.
It should be noted that all multi-year Sidetrade contracts are routinely indexed to inflation (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 anticipating contract renewals.
Double-digit growth in sales confirmed for 2024
Sidetrade looks ahead to the fiscal year 2024 with confidence and a clear vision and has the resources to fulfill its ambitions.
Olivier Novasque, CEO of Sidetrade commented :
The 2023 fiscal year further confirmed the robustness of Sidetrade’s development model. On the one hand, thanks to our technological lead in AI, 2023 was our most prolific year to date in new Annual Contract Value terms, achieving €11.2 million. Sidetrade delivered remarkable revenue growth, up 20% at constant exchange rates with a 23% increase in SaaS subscription revenues alone for our Order-to-Cash activities. This performance was underpinned by two key growth drivers; our successful US expansion posting revenues up more than 40%, combined with our business strategy targeting multinationals, which triggered a 48% increase in subscription revenues from this segment. Given the SaaS model’s inherent lag between bookings and revenues, the commercial successes of 2023 lead us to confidently anticipate another year of double-digit revenue growth on a full-year basis for the fiscal year 2024.
On the other, 2023 also saw us considerably step up our investments, especially in the United States, as well as relentlessly focusing on Company-wide productivity and efficiency enhancements. To this end, our efforts to streamline processes coupled with a high gross margin (81%) resulted in a significant surge in our operating profit, up 58% to €5.8 million, with an improvement of almost 3 points in our operating margin, which is now at 13% of our revenue versus 10% in 2022. Evidently, the best example of the Company’s successful 2023 performance is its operating cash flow at €8.7 million, a record high over a fiscal year.
Looking beyond these figures, Sidetrade’s model, which is based on a healthy balance between growth and profitability, has once again demonstrated its relevance against a background of economic uncertainty.
Robustness of the profitable growth model confirmed
| Sidetrade (€m) |
2023 | 2022 | Change |
| New Annual Contract Value (ACV) | 11.2 | 10.3 | +9% |
| Revenue | 43.7 | 36.8 | +19% |
| of which ‘Order-to-Cash’ SaaS subscriptions | 36.6 | 30.1 | +22% |
| Gross margin | 35.3 | 29.0 | +22% |
| as a % of Revenue | 81% | 79% | |
| Operating expenses (OPEX) | (29.4) | (25.3) | +16% |
| Operating profit | 5.8 | 3.7 | +58% |
| as a % of Revenue | 13% | 10% | |
| Net profit | 5.6 | 3.4 | +67% |
2023 consolidated financial statements were audited and will be certified after finalization of procedures required for the annual financial report.
€11.2 million – a new record for bookings in 2023
In 2023, despite economic challenges, Sidetrade proved resilient by exceeding its previous record in New Annual Contract Value (ACV), which totaled €11.2 million, representing an increase of 9%. This performance was driven in particular by the momentum of the US market, with a 22% increase in bookings, 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 initial period for new contracts to 45.5 months in 2023. Total Contract Value (TCV) slightly increased to €21.1 million. Services bookings were up 31%, notably thanks to the growing number of global deployment projects.
Key factors behind this success were Sidetrade’s business strategy targeting companies generating $1 billion-plus revenue, and recognition of its technological edge in artificial intelligence, 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.
Strong revenue growth, up 20%, with SaaS subscriptions up 23% at constant exchange rates
In 2023, Sidetrade posted brisk growth in its activities, as shown by the 23% increase in its revenue for ‘Order-to-Cash’ SaaS subscriptions at constant exchange rates, a performance which resulted in growth of 22% on a reported basis. The Company’s revenue for 2023 totaled €43.7 million, as evidenced by the robust increase of 20% at constant exchange rates and 19% on a reported basis.
This favorable trend is largely attributable to three factors:
- Successful expansion in the United States: the North American market continued to propel Sidetrade’s growth, with a substantial increase of 40% in revenues for 2023, reaching €12.1 million. Representing 28% of the Company’s total revenue, North America is now a pivotal pillar for growth.
- Increasing demand from multinational corporations: in 2023, Sidetrade significantly expanded its customer portfolio for ‘Order-to-Cash’ solutions, delivering growth of 48% in subscriptions with multinational corporations on annual recurring revenue (ARR) contracts in excess of €250,000. Such commitments now account for 43% of Sidetrade’s total subscriptions.
- Contribution from consolidating CreditPoint Software: with H2 2023 revenue of €0.9 million, the CreditPoint Software business had a 2% impact on annual growth.
It should be noted that all multi-year Sidetrade contracts are routinely indexed to inflation (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.
CreditPoint Software, an accretive acquisition, now fully operational
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 additional revenue of €0.9 million in H2 2023.
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 acquisition agreement provided for an initial payment (€0.5 million upon signing) followed by a conditional payment 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 renewed the contract for the same amount (excluding orders specified above) but also extended the initial contractual period 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 among Sidetrade’s top five clients, with ARR in excess of €1 million. Note that no subsequent payment was incurred from this second contract since its remit was outside the scope of acquisition. Upon final settlement, the purchase price will total €2.7 million, including the price to acquire services (€0.2 million).
Strong increase in operating margin to 13% with additional investment of €4 million
Marked progress in gross margin, at 81% of revenue, above the SaaS industry average
Gross margin further improved, topping out at 81% of revenue for 2023 (vs. 79% in 2022) and 93% (+1 pt vs. 2022) on SaaS subscriptions alone. In 2023, Sidetrade recorded a year-on-year incremental improvement of €6.3 million in gross margin.
This excellent performance is fueled by the contribution of SaaS subscriptions which now account for 98% of the Company’s total gross margin, 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.
Substantial increase in operating margin to 13% of revenue, despite additional investment of €4 million
Operating profit for 2023 totaled €5.8 million, representing an increase of 58% on the 2022 fiscal year (€3.7 million). In 2023, gross margin, with a €6.3 million increase over 2022, amounts to €35.3 million. The significant increase has more than made it possible to support the Company’s investment policy (+€4.0 million vs. 2022), while triggering an all-time surge in Sidetrade’s operating profit.
Operating profit for 2023 includes a French Research Tax Credit of €2.4 million (vs. €2.3 million in 2022) as well as activation of €0.2 million in marginal R&D costs, i.e., 2% of R&D costs for the full year.
As a result, operating margin increased to 13% vs. 10% in 2022, representing a 3-point gain year-on-year.
Net profit up 67% to €5.6 million vs. €3.4 million in 2022
Net financial income for 2023 stood at €0.4 million, up significantly from 2022, mostly due to interest earned on short-term investments during the year.
Corporate income tax for 2023 was estimated at €0.6 million, vs. €0.4 million in 2022.
All told, Sidetrade’s net profit for 2023 was €5.6 million, up 67%, demonstrating that a balance between growth and profitability is achievable
Strengthened financial position
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 €23.9 million in gross cash 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), Sidetrade increased its investment capacity to accelerate its expansion.
Distinguished CSR commitment: rated Gold by EthiFinance and Silver by EcoVadis
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:
- Sustainability, by implementing initiatives aimed at reducing its carbon footprint;
- Collaborative excellence, by championing diversity and innovation within its teams;
- Data security, by safeguarding the protection of data;
- Ethical business practices, by building relationships founded on transparency and integrity.
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 Bilan Carbone® 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.
Continued growth in 2024, on the back of an unprecedented 2023
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. For 2024, Sidetrade confirms revenue growth in the double digits. 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.
In her role as Chief of Staff, Benichou will act as a strategic advisor to Sidetrade’s CEO Olivier Novasque. She will play a key role in instrumentalizing Sidetrade’s vision and go-to-market strategies, creating added value with a unified global approach. Furthermore, Benichou will spearhead the development of strategic alliances worldwide with an emphasis on ‘the Big 4’ consulting firms and will also contribute to M&A initiatives.
Olivier Novasque, Sidetrade CEO commented: Carole’s remarkable career trajectory in the Software industry, coupled with her leadership and expertise in navigating complex sales cycles at a global level, position her as a key asset in driving Sidetrade’s future.
Benichou brings to Sidetrade an exceptional strategic acumen with two decades of experience spent devising marketing, go-to-market, alliances, pre-sales and customer success strategies at large American corporations, Procter & Gamble and Microsoft. Prior to joining Sidetrade, she was Senior Director in Azure Data & AI at Microsoft where she led pre-sales and customer success.
Reflecting on her new role, Carole Benichou, Sidetrade Chief of Staff, said: It is a privilege to be joining Sidetrade as Chief of Staff, and I’m eager to contribute to the group’s impressive trajectory. Sidetrade’s AI vision for the future is not only ambitious, but also firmly within reach, and I’m thrilled to be part of the journey as we accelerate our path to revenue growth.
This appointment underscores Sidetrade’s commitment to expanding its Order-to-Cash footprint, supported by a strategy focused on leadership and optimizing go-to-market.
For the first time, Sidetrade has achieved a Gold medal by EthiFinance, the rating agency for European listed SMEs, for its extra-financial performance. For 2022, Sidetrade secured an impressive score of 76/100, marking a clear improvement up from 65/100 the previous year. Notably Sidetrade’s environmental score saw the biggest jump with a 43-point increase, whilst achieving a near perfect score in the social category with 93/100.
Sidetrade has also secured a Silver medal for the 2023 sustainability rating by EcoVadis, the world’s most trusted business sustainability ratings. With an overall score of 68/100, Sidetrade achieved its best rating to date, registering a significant 15-point increase on 2022. The company improved its social and ethics score by 20 points, and its environmental score by 10 points. This performance places Sidetrade in the 91st percentile of companies assessed by EcoVadis in terms of environmental, social and ethical performance.
Philippe Gangneux, CFO and CSR Ambassador at Sidetrade commented: These ratings by EthiFinance and EcoVadis are a remarkable recognition of our commitment to Corporate Social Responsibility (CSR). By encouraging teams at all levels and across all functions, we cultivate a firm commitment to minimizing our environmental impact. We are determined to work for positive change, both within our company and beyond.
Since 2021, Sidetrade’s social and environmental commitment has been recognized through ESG assessments by Ecovadis and EthiFinance. Having previously been ranked Silver by EthiFinance and Bronze medal by EcoVadis in 2021, Sidetrade has embarked on a journey of progress to achieve advanced ratings by both rating agencies.
Recognizing the importance of reducing carbon emissions, Sidetrade has carried out its first full carbon assessment (scopes 1, 2 and 3) for the fiscal year 2022. This initiative is designed to record precise data on its global greenhouse gas (GHG) emissions globally, and adopt a targeted strategy to reduce its carbon footprint.
In 2023 Sidetrade published its Corporate Social Responsibility strategy which encompasses its goals and activities aimed at fostering a positive influence on its employees, customers, stakeholders and the environment.
The key commitments outlined in this CSR report include:
- Controlling its carbon footprint
- Driving innovation and investing in talent
- Securing data
- Building sustainable, ethical and transparent relationships
Learn more about Sidetrade’s CSR commitments.
Sidetrade continues to be exemplary, reinforcing its commitment to safeguarding data. The globally recognized SOC audit report and distinguished ISO 27001 certification affirm the company’s commitment to maintaining the highest information security standards, cementing Sidetrade’s reputation as a guardian in protecting data integrity.
Establishing a foundation of trust and clarity between outsourced service providers and their customers is of critical importance. In this context, SOC 1 Type 1 (ISAE 3402) demonstrates that the financial reporting of our applications is trustworthy, and SOC 2 Type 1 (ISAE 3000) shows Sidetrade’s commitment to data security. Signed by EY, the SOC reports offer an independent assessment of Sidetrade’s internal control mechanism over processes, data, and systems.
Furthermore, Sidetrade has once again renewed the ISO 27001 certification, an international standard established for information security, issued by EY CertifyPoint. It guides companies in adopting best practices for data security and management. Sidetrade’s ongoing effort to enhance its Information Security Management System (ISMS), since the first certification in 2019, reflects a steadfast determination to continue strategic security initiatives.
Sidetrade’s AI-Aimie powered by the most unique Order-to-Cash Data Lake, epitomizes the nexus of trusted certification and forward-looking innovation. This ground-breaking technology provides a predictive, secure, real-time analysis, enabling businesses to harness the full potential of their customer relationship on the Order-to-Cash. This triple achievement significantly amplifies Aimie’s security and skills with Sidetrade’s clients now benefitting from an elevated level of data protection, ensuring that their most sensitive financial information is handled with the highest degree of integrity.
Laurent Pontier, Sidetrade’s CTO Chief of Staff, commented: These compliance confirmations are not just accolades; they’re a concrete affirmation of our commitment to the highest standards of security and proficiency in our services. Today, we are setting a new standard of excellence in the Order-to-Cash industry. Our commitment to our clients is unwavering.
Achieving this excellence in security establishes the bar in operational efficiency and safety. Every day, we strive to strengthen the trust our clients place in us for handling their most sensitive and confidential information.
These milestones also further reinforce Sidetrade’s commitment to Corporate Social Responsibility, as outlined in its latest report as part of its focus on transparency and ethical practices.
Olivier Novasque, CEO of Sidetrade commented:
On the back of record 2022 bookings, in 2023, we successfully stayed the course, achieving a 9% increase in new Annual Contract Value coupled with an extension to the initial contract period for new customers. As a result, 2023 marked a record year in bookings for Sidetrade despite a difficult macroeconomic environment. Given our business’ inherent lag between bookings and revenues, we now know that revenue growth in 2024 will be in double digits.
Sidetrade delivered a remarkable 2023 performance in revenue terms, up 20% at constant exchange rates. This additional growth is mainly due to our successful expansion in the United States, with revenues up 40%, to more than €12 million, representing almost a third of the Company’s total revenue less than three years after we launched business in the region. In parallel, our business strategy targeting multinationals significantly contributed to this momentum; subscription revenues from this segment were up 48% and now account for nearly half of total recurring revenue. With this in mind, our technological edge in AI is increasingly recognized by major customers who are now noticeably more mature in the field. This competitive advantage is illustrated by our commercial success rate for contracts won in preference over North American market leaders – increasing from 45% in 2021 to 68% in 2022 and 79% in 2023.
In addition to considerably stepping up our investment, 2023 also saw us relentlessly focusing on Group-wide productivity and efficiency enhancements. This endeavor to optimize performance should result in a higher-than-expected operating margin, from the fiscal year 2023.
With €11.2 million in bookings, Sidetrade exceeds its record in 2022, up 9%
| Sidetrade (€m) |
2023 | 2022 | Change |
|---|---|---|---|
| New SaaS Subscriptions (new ARR) | 6.2 | 6.4 | -4% |
| Services bookings | 5.0 | 3.8 | +31% |
| New Annual Contract Value (ACV) | 11.2 | 10.3 | +9% |
| of which North America (ACV) | 4.1 | 3.4 | +22% |
On a full-year basis, for the fiscal year 2023, Sidetrade succeeded in slightly exceeding its record bookings achieved in 2022, in an uncertain economic environment. New Annual Contract Value (ACV) totaled €11.2 million, up 9%. As a reminder, ACV bookings in 2022 posted record revenue of €10.3 million, with impressive growth of 36% versus 2021. 2023 therefore set a record for Sidetrade bookings. The United States contributed to Sidetrade’s 2023 growth, with a 22% increase in bookings which accounts for 37% of total bookings. Also of note is the start of a recovery in the Northern Europe region (mainly the United Kingdom) with ACV of €1.09 million in 2023 versus €0.36 million in 2022 (+200%), paving the way for additional growth in 2024.
New SaaS bookings totaled €6.18 million, remaining almost stable versus 2022 (-4%). Against a backdrop of economic uncertainties, the Company is committed to increasing visibility of its future revenues in contract negotiations. To this end, in 2023, the initial period for new contracts continued rising, up to 45.5 months versus 44.9 months the previous year. As such, Total Contract Value (TCV) for 2023 slightly increased to €21.1 million versus €20.7 million in 2022. In parallel, services bookings, which are almost all invoiced within twelve months of their signing, totaled €5.04 million, up 31% compared to 2022 (€3.84 million). This strong increase is largely due to the growing number of global deployment projects.
Overall, the 2023 bookings performance was due to 1/ a business strategy kick-started eighteen months ago, with a focus on companies generating $1 billion-plus revenue, 2/ increased recognition by multinationals of Sidetrade’s technological edge in artificial intelligence, particularly in the United States, and 3/ the development of a comprehensive Order-to-Cash software suite, resulting from a strategy of continuous innovation.
In 2023, Sidetrade’s appeal was powerfully demonstrated by contracts won with industry giants including BIC, Agfa, NielsenIQ, Dassault Systèmes, Bayer, Nutrien and Morningstar, Inc. This wealth of leading brands not only serves as a testament of confidence, but also a tangible validation of the relevance and efficiency behind Sidetrade’s solutions.
In the fiscal year 2023, bookings by new customers (“New Business“) accounted for 58% of the total new bookings, while 20% of total new bookings were driven by cross-selling. Lastly, upselling of additional modules to existing customers represented the remaining 22% of bookings.
Robust revenue growth, up 20% at constant exchange rates, with SaaS subscriptions up 23%
| SIDETRADE (€m) |
2023 | 2022 | Change |
|---|---|---|---|
| ‘Order-to-Cash’ activities | 43.1 | 35.9 | +20% |
| of which SaaS Subscriptions | 36.6 | 30.1 | +22% |
| ‘Sales & Marketing’ activities | 0.6 | 0.9 | -33% |
| Revenue | 43.7 | 36.8 | +19% |
In 2023, revenue for ‘Order-to-Cash’ SaaS subscriptions grew substantially, up 23% at constant exchange rates and 22% on a reported basis.
Sidetrade’s revenue for 2023 totaled €43.7 million, up 20% at constant exchange rates and 19% on a reported basis.
This performance is attributable to three factors:
- Successful expansion in the United States
Quarter after quarter in 2023, the United States was a key growth driver for Sidetrade, posting revenues up 40% on a full-year basis to €12.1 million. As a result of this successful expansion, international markets now represent 58% of the Company’s total revenue, already including 28% in North America. Going forward, the United States will continue to be pivotal for Sidetrade’s growth.
- Increasing demand from multinational corporations
Analysis of customer profiles for ‘Order-to-Cash’ activities is underpinned by impressive growth of 48% in subscriptions with multinational corporations on annual recurring revenue (ARR) contracts in excess of €250,000. These subscriptions now account for 43% of Sidetrade’s total subscriptions and are expected to remain an important growth driver in the quarters ahead.
- Consolidation of CreditPoint Software business
Effective July 1, 2023, the consolidation of the CreditPoint Software business has positively contributed to Sidetrade’s performance. In H2 2023, CreditPoint generated revenue of €0.9 million with a 2% impact on annual growth.
It should be noted that all multi-year Sidetrade contracts are routinely indexed to inflation (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.
Sidetrade looks ahead to the fiscal year 2024 with confidence and a clear vision, and has the resources to fulfill its ambitions.