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.
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Now heading into its fifth year, Sidetrade Code Academy is an entirely free, four-week course open to anyone in the West Midlands regardless of their technical experience or background. The programme offers full-time AI career opportunities to a selection of graduates who will join Sidetrade’s 300+ strong global workforce from its Birmingham office.
Mark Sheldon, Chief Technology Officer of Sidetrade, commented: It’s a hugely exciting time for the tech and AI sector with fantastic career opportunities on offer.
Historically, the tech industry has been too prescriptive on academic and technical requirements, which in turn has limited opportunities for aspiring individuals. With Sidetrade Code Academy, we are broadening the entry point to tech careers; our mission is to make the tech industry more inclusive, diverse and accessible to all by emphasizing practical skills, hands-on experience, and mentorship over conventional prerequisites. By dismantling the rigid norms of the past, we’re opening doors to untapped talent, propelling the entire industry toward new heights.
Demand for this groundbreaking programme has seen a 617% rise in the number of applications since launch, with over 200 candidates applying for the 2023 programme, including a rising number of female applicants.
Sheldon added: We are delighted that the Sidetrade Code Academy continues to attract a diverse talent pool. At Sidetrade, we are committed to diversity and inclusion to ensure a wide range of perspectives, ideas, and talents, ultimately driving innovation and success on a global scale.
Since launch, Sidetrade Code Academy has received widespread support from the Birmingham business and tech community.
John Cotton, Leader of Birmingham City Council commented: Initiatives like Sidetrade Code Academy have a transformative impact on our community. By breaking down barriers to tech careers, we are not just fostering a new generation of skilled tech professionals in Birmingham, but also championing inclusivity and equal opportunity. This initiative doesn’t just teach code; it unlocks doors to a world of possibilities, ensuring that everyone, irrespective of their background and technical experience, can contribute to and thrive in Birmingham’s dynamic tech community.
Emily Lamidieu, Co-founder of local networking group, Women in Tech Birmingham, said: Traditionally, getting a job in tech has required candidates to have some kind of STEM subjects on their CVs. Unfortunately, current research shows that young girls are still less likely to study these kinds of subjects during their schooling years, making it harder to break into tech later in their adult lives. That’s why initiatives like Sidetrade Code Academy are fantastic for opening the doors to many people who otherwise would never have had the chance to start a career in tech.
Run entirely by members of Sidetrade’s exceptional engineering team, key features of the program include:
- Free Training: Participants will receive high-quality coding education at no cost, ensuring that financial barriers do not hinder their pursuit of a rewarding career in technology.
- Hands-On Experience: The programme goes beyond theory, offering practical, hands-on coding experience to prepare apprentices for real-world challenges.
- Industry-Relevant Curriculum: The curriculum is crafted in collaboration with Sidetrade senior engineers to ensure that participants acquire skills that are directly applicable to today’s tech landscape.
- Mentorship: Participants have access to seasoned mentors who will provide guidance and support throughout their apprenticeship journey.
- Job Placement Assistance: Upon successful completion of the program, a selection of participants will receive job offers at Sidetrade to launch their careers in tech.
Interested participants are invited to apply to the programme by Friday 8 December 2023. An assessment day will take place in Birmingham on Friday 5 January 2024, and successful applicants will start the four-week course on Monday 22 January 2024, with one in-person day a week and four days remotely.
Learn more about Sidetrade Code Academy or apply here.
In the current economic landscape, marked by unpredictability due to persistent inflationary pressures and a shortage of qualified talent, businesses are facing cash flow challenges. However, they have the opportunity to enhance their financial resilience and productivity through technological innovation.
Sidetrade has undertaken a survey in partnership with PwC France and Maghreb to explore the dynamics of corporate finance, with a specific focus on digital transformation. This exclusive study, titled ‘Cash Maturity 2023’, captures the insights of companies and gathers valuable perspectives on the implementation of financial transformation projects across the globe.
PwC France and Maghreb Partner Arthur Wastyn said: “In the current context, the imperative to enhance productivity takes center stage for organizations. Escalating costs and the demand for operational efficiency only serve to underscore the significance of optimizing Order-to-Cash processes. The Cash Maturity 2023 study provides leaders with valuable insights into the specific challenges and untapped potential related to the financial function transformation. Current technologies have reached a level of maturity that allows for tangible short and medium-term gains. Waiting too long to adopt these technologies now carries the risk of being caught off guard by the market.
Key findings of the Cash Maturity 2023 study:
- Despite the widespread recognition of financial transformation projects as a crucial element of modern business strategy, there’s a notable reluctance to allocate the necessary financial resources, which hinders performance. While an impressive 88% of companies have either initiated or are considering finance transformation projects, only 54% are contemplating increased investments in the next 12 months.
- Consequently, this cautious budgeting approach perpetuates inefficiencies and non-value-added tasks within finance teams. Surprisingly, 36% of the workforce dedicates time to activities that could easily be automated, such as order entry, invoicing, payment capture or matching.
- What’s even more noteworthy is that over two thirds (69%) of companies openly admit to not fully capitalizing on their data assets. Instead, they opt for ad hoc analysis, historical reporting, or, in some cases, neglect data analysis altogether.
- HR strategy, essential to support financial transformation, focuses primarily on skills outsourcing, accounting for 52% of investments. However, it is crucial to recognize that this outsourcing carries a potential risk for the sustainability of the changes underway. Technological transformation cannot be successfully achieved without the contribution employees within the company, as they are the guarantors of the project’s success and the sustainability of the benefits obtained.
Commenting on the study’s findings, Sidetrade Partner Jean-Claude Charpenet said: It’s time for financial leaders to choose: inertia is now synonymous with imminent disruption. By fully exploiting mature technologies, financial transformation projects can deliver powerful results in the short and medium term. However, our analysis reveals a critical under-exploitation of data and artificial intelligence, hampering the optimization and securing of cash flow. What’s more, many simple automation opportunities remain untapped. Real-time data is positioning itself as the central pillar of financial excellence, driving innovation, operational efficiency and proactive risk management.
The complete Cash Maturity 2023 study can be accessed here.
Methodology
The study Cash Maturity 2023 was collaboratively conducted by PwC France et Maghreb and Sidetrade during the second quarter of 2023.
The research encompassed responses from a carefully selected sample of 172 companies, representing a diverse spectrum of functions, including Finance Departments, General Management, and key operational roles such as CFOs and Shared Services Center Directors.
To ensure the robustness of our findings, it intentionally designed the survey sample to be highly heterogeneous, encompassing companies of varying sizes, from Small and Medium-sized Enterprises (SMEs) to large corporations, and spanning across a multitude of industry sectors.
This methodological approach was undertaken to provide a comprehensive and representative analysis of the finance transformation landscape, offering insights that cater to a wide range of organizations.
Olivier Novasque, CEO of Sidetrade commented:
In line with H1 2023, the performance in Q3 – traditionally a weak period for bookings – confirms the relevance of the strategic decisions we made over the last eighteen months. Our technological edge in AI, which is increasingly recognized by major customers, coupled with our expanded offering and our impressive foothold in the United States all provide strong advantages to continue our ramp-up in the quarters ahead. On the back of these first nine months, we are now just 20% short of our all-time record for bookings which we achieved in 2022, with €10.3 million in Annual Contract Value. In this context, we are confident of delivering great bookings on a full-year basis in 2023. Supported by our economic model, we can expect the bookings in 2023 to ensure another year of double-digit growth in 2024 despite all present and future economic uncertainties. Now more than ever, we remain committed to offering our shareholders, employees and customers a sustainable development model that combines growth and profitability.
€2.5 million in new Annual Contract Value, up 10%
| Sidetrade (€m) |
Q3 2023 | Q3 2022 | Change |
|---|---|---|---|
|
New SaaS subscriptions (New ARR) |
1.33 | 1.38 | – 4% |
|
Services bookings |
1.17 | 0.89 | +32% |
|
New Annual Contract Value (ACV) |
2.49 | 2.27 | + 10% |
2023 information is from consolidated, unaudited data.
In Q3 2023, despite prevailing economic uncertainties, Sidetrade maintained double-digit growth in bookings. New Annual Contract Value (ACV) totaled €2.49 million, up 10% versus Q3 2022. This represents the Group’s best-ever performance in a third quarter, which is traditionally the weakest of the year. This increase in bookings was impressive since it occurred despite a challenging base effect with Q3 2022 already setting a historic record for Sidetrade with €2.27 million in ACV.
New SaaS bookings totaled €1.33 million, remaining almost stable versus Q3 2022 (-4%). This performance was mostly driven by the United States, which accounts for 53% of total new SaaS bookings, partly thanks to major contracts won with players including OpenText, a Nasdaq-listed company and global-leading provider of Cloud and cybersecurity solutions.
In parallel, services bookings, which are almost all invoiced within twelve months of their signing, totaled €1.17 million, up 32% compared to Q3 2022 (€0.89 million). This performance is largely due to the growing number of deployment projects signed on a large scale.
In Q3 2023, bookings by new customers (“New Business“) accounted for 59% of the total new bookings, while 23% of total new bookings were driven by Cross-selling. Lastly, Upselling of additional modules to existing customers represented the remaining 18% of bookings.
As observed in H1 2023, Q3 performance for 2023 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, and 3/ the development of a comprehensive Order-to-Cash software suite, resulting from a strategy of continuous innovation.
Robust growth in revenue, up 21%, with SaaS subscriptions up 23%
| Sidetrade (€m) |
Q3 2023 | Q3 2022 | VARIATION (%) |
|---|---|---|---|
| ‘Order-to-Cash’ Activities | 11.1 | 9.1 | + 22% |
| of which SaaS Subscriptions | 9.5 | 7.7 | + 23% |
| ‘Sales & Marketing’ Activities | 0.1 | 0.2 | – 11% |
| Revenue | 11.2 | 9.2 | + 21% |
2023 information is from consolidated, unaudited data.
In Q3 2023, revenue for ‘Order-to-Cash’ SaaS subscriptions continued its brisk growth, up 25% at constant exchange rates and 23% on a reported basis.
Sidetrade’s revenue for Q3 2023 totaled €11.2 million, up 23% at constant exchange rates and 21% on a reported basis.
This performance is attributable to three factors:
- Successful expansion in the United States
In Q3 2023, the United States was a growth driver for Sidetrade, posting revenues up 30%. As a result of this successful expansion, international markets now represent 58% of the Company’s total revenue, 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 59% 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 months 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 Q3 2023, CreditPoint Software generated revenue of €0.4 million with a 4% impact on quarterly growth.
Sidetrade, a leader in Order-to-Cash applications, plays a crucial role for national and multinational companies in over 85 countries. To extend its influence in South America – a region experiencing rapid economic growth – the company has chosen to partner with Latinafinance.net, a consulting firm specializing in treasury, financing, risk management and financial transformation.
Latinafinance.net has been present on the South American continent since 2009. Headquartered in Uruguay, it covers Brazil, Mexico, Argentina, Chile, Peru and Uruguay. Thanks to the combined expertise of both organizations, local companies will benefit from advanced solutions to optimize their performance in the Order-to-Cash cycle, while multinationals will find two strategic partners capable of supporting them in their financial activities in South America and beyond.
Florent Michel, Managing Partner of Latinafinance.net, commented: In South America, there are some 900 companies with sales in excess of 500 million dollars, two-thirds of which are located in Brazil and Mexico. At the same time, European and American multinationals are centralizing their financial operations for the South American region through shared service centers in these countries and are often looking for global solutions to collaborate effectively with their headquarters. By working together with Sidetrade and Latinafinance.net, these companies will secure and accelerate their cash flow generation. This partnership will enable them to benefit from the combined expertise of the two companies to optimize their financial processes and strengthen their position in a booming South American market.
In South America, the automation and digitization of financial processes have experienced very strong growth in recent years and have become a top priority for large enterprises. The region’s cash culture is deeply rooted, driven by periods of high inflation rates and restricted access to bank financing and capital markets. Against this backdrop, companies need to ensure that they have sufficient, stable liquidity to meet their financial obligations and ensure sustained growth. As such, rigorous cash management is essential if they are to prosper in a rapidly changing economic environment.
Jean-Claude Charpenet, VP Sales Director Europe at Sidetrade, commented: Thanks to our support of major companies such as Saint Gobain, Geodis, Veolia, Air Liquide, Edenred, and Sodexo on the South American continent, we have in-depth knowledge of the regional context, as well as the business and technological needs specific to this geography. Companies in South America are prioritizing digital transformation, with initiatives focused on generating and securing cash flow.
Sidetrade’s ongoing commitment to innovation and excellence in O2C solutions makes us extremely confident in our ability to succeed in this dynamic environment and create value, Indeed, our SaaS technology offers the flexibility and adaptability essential to meet the specific needs of every financial department, whether South American or international. The partnership with Latinafinance.net will enable us to fully seize the opportunities offered by this booming market.
Sidetrade and Latinafinance.net will initiate a progressive development strategy, first focusing on Brazil and Mexico, where the companies already have many customers, and whose presence of numerous shared service centers offers them considerable opportunities. In a second phase, they plan to extend their reach to Chile, Colombia, Uruguay and Peru.