Trading Update
03/04/2023 07:00
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RNS Number : 0441V D4T4 Solutions PLC 03 April 2023
03 April 2023
D4t4 Solutions Plc
Trading update
D4t4 Solutions Plc (AIM: D4T4, "the Group", "D4t4"), the AIM-listed data
solutions provider, provides the following trading update for the year to 31
March 2023.
Due to the delays in signing of a project with an existing banking customer
which included a high proportion of low margin hardware, and a Celebrus
multi-year contract with a new customer, results(1) are expected to be lower
than management expectations, with full year revenues in the region of
approximately £21.5 million (FY22: £24.5 million) and adjusted profit before
tax(2) of approximately £3.5 million (FY22: profit £3.3 million). Revenue
for the core business (i.e. excluding third party hardware sales) will be
approximately £19.4 million (FY22: £17.5 million) which represents growth of
11% percent compared with the prior year. Both delayed projects are expected
to sign in the first half of the new financial year.
Annual recurring revenue ("ARR" (3)) from software licenses and associated
support, maintenance and managed services (excluding the positive impact of
currency revaluation of opening balances) is expected to increase by 14% to
approximately £16.0 million (31 March 2022: £14.0 million; 30 September
2022: £14.4 million). This further underlines the Group's continued
investment and focus in growing the Celebrus software business (CDP and FDP)
with key wins in the second half that include a bank in Spain, a healthcare
organisation in the US, and an insurance company in APAC. In addition, the
second half included a key upsell of a large US Retail Bank to begin using the
no-party data feature of Celebrus, CX Vault, which was launched in July 2022.
The cash balance was £17.7 million at 31 March 2023 (FY22: £11.4 million),
with no debt.
The total sales pipeline grew by 27 percent during the year whilst the value
of proposals out with potential and existing customers increased fourfold,
providing strong visibility into performance for the first half of the new
year, and reflecting the investment into sales, marketing, and customer
success.
The Group will continue to invest in sales and marketing for the core business
to build upon the growth in the year just ended. To offset the costs of that
ongoing investment the Group will continue to optimise and streamline our
operations.
The Group will publish its full year results on 11 July 2023.
(1) The trading performance reported in this statement is based on unaudited
management accounts
( )
(2) Adjusted profit before tax is calculated before amortisation of
intangibles, foreign exchange gains/losses, share based payment charges and
one-off reorganisation costs.
(3) Annual Recurring Revenue is the amount of revenue currently contracted at
a point in time that is expected to recur within the next twelve months.
Bill Bruno, CEO of D4t4 Solutions, said:
"Although the customer delays in closing the expected deals before our year
end are frustrating, we are happy with the progress that we have made in
growing our core business, focused on selling our Celebrus software in our key
markets. We continue to build momentum with the new sales and marketing
approach that has been put in place over the past year and look forward to a
successful upcoming financial year for Celebrus."
The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No.
596/2014, as retained and applicable in the UK pursuant to S3 of the European
Union (Withdrawal) Act 2018 ("MAR").
Enquiries
D4t4 Solutions Plc +44 (0) 1932 893333
Bill Bruno, Chief Executive Officer investors@d4t4solutions.com (mailto:investors@d4t4solutions.com)
Ash Mehta, Chief Financial Officer
finnCap (Nominated Adviser & Joint Broker) +44 (0) 20 7220 0500
Julian Blunt / Edward Whiley, Corporate Finance
Alice Lane, ECM
Canaccord Genuity (Joint Broker) +44 (0) 20 7523 8000
Simon Bridges / Andrew Potts
About D4t4 Solutions plc
D4t4 Solutions plc (AIM: D4t4) was founded around a passion for helping brands
create better relationships with their consumers via better data.
Supporting customers in financial services, retail, travel, healthcare, and
telecommunications across 27 countries, D4t4 enables businesses to make
smarter, informed decisions via Celebrus, the company's flagship first-party
product suite. Celebrus automatically captures, contextualises, and activates
user-based behavioural data in real-time across all digital channels. Through
behavioural biometrics and analytics, Celebrus helps companies prevent fraud
before it happens. Celebrus Cloud provides an enterprise platform that
automates and enables organisations to get better value from the Celebrus
software in a more efficient manner.
The Group has offices in the UK, USA, India, and Australia with key talent in
all markets to drive the growth of the business. Celebrus is fully compliant
with all major data privacy regulations and the Group is accredited to
ISO27001: Information Security Management.
For more information, please see www.d4t4solutions.com
(http://www.d4t4solutions.com)
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