Interim results for the 6 months to 30 June 2023
Sopheon, the InnovationOps software company, announces its unaudited half-yearly financial report for the six months ended 30 June 2023 (“H1” or “the Period”) together with a business review and outlook statement for the second half of the year.
Highlights:
Revenue was $0m compared to $15.7m in H1 2022, reflecting a strong recurring revenue performance.
Five new enterprise customers were signed in the period for our flagship Accolade® software. Sales team activity also included orders for Acclaim™ Projects and Acclaim Ideas, acquired with ROI Blueprints and Solverboard respectively. Our online sales channel for Acclaim Ideas and Acclaim Products, introduced in September 2022, has shown continued growth with signup activity rising from a cold start to benchmark run rates. We will continue to refine product and marketing methodologies to achieve conversion.
SaaS ARR1 of $2m at 30 June (H1 2022: $9.3m) representing an impressive 63% year over year growth. All new customers signed in the period were SaaS based.
Total ARR including maintenance was $25.9m at 30 June (H1 2022: $21.9m) representing 18% year-on-year growth. Gross ARR retention for the Period was almost 99% (H1 2022: 98%).
Full year 2023 revenue visibility2 stands at $4m compared to $34.1m at this time last year. Last year’s comparative included over $4m from a substantial perpetual license order from the US Navy, received in July 2022. The current sales pipeline for the balance of 2023 includes opportunities for two significant perpetual extension orders from existing military customers, as well as many SaaS opportunities from private sector prospects and existing customers.
Adjusted EBITDA3 of $2.9m (H1 2022: $2.9m) reflects continued investment in product and commercial initiatives as per operating plans. Net cash at 30 June was $22.4m (H1 2022: $23.5m) and the Group remains debt free.
In February 2023, Barney Kent, former Chief Operating Officer of Ideagen plc was appointed to the board as a Non-Executive Director, underlining the Company’s commitment to continued board independence, organic growth and M&A activities.
Several product releases were made during the Period, with AI capabilities now introduced to two of our offerings. As noted above, sales were booked for Acclaim Projects and Acclaim Ideas alongside Accolade, underpinning Sopheon’s strategy to be the leading software vendor focused on operationalizing the business of innovation, commonly referred to as “InnovationOps.”
Post Period end, in July 2023, we acquired Prodex, Sopheon’s reseller for Australia, New Zealand and South-East Asia, for initial consideration of $0.7m. Sopheon's third acquisition since 2021 brings us a truly global footprint, with a strong platform to advance customer acquisition and growth in the Asia Pacific region.
Sopheon’s Executive Chairman, Andy Michuda said: “Sopheon continues to deliver on its key growth and transformation objectives, demonstrated in particular by significant and sustained increases in SaaS ARR, supported by continued high retention performance. In parallel we have delivered substantial investment in growth initiatives and M&A that expand our product offering, geographical footprint and market opportunity, while maintaining cashflow discipline and EBITDA performance. Our strong balance sheet continues to support our ability to execute with confidence. We expect the impact of increased investments in both marketing and product to contribute to a stronger sales pipeline in the second half of the year and beyond, in support of our growth objectives.”
For further information contact:
Andy Michuda, Executive Chairman
Arif Karimjee, CFO Sopheon plc + 44 (0) 1276 919 560
Bertus S.