REG - Datalex PLC Datalex PLC - DLE - Publication of 2024 Annual Report

DatalexAnnouncement

15/05/2025 07:00

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RNS Number : 7307I  Datalex PLC  15 May 2025

Datalex plc

 

Publication of 2024 Annual Report

 

Datalex reports positive progress in 2024, laying the foundations for stronger
financial performance in 2025 and beyond

 

Dublin, Ireland, 15 May 2025: Datalex plc ("Datalex", the "Company" or the
"Group") (Euronext Growth Dublin: DLE), a market leader in airline e-commerce
solutions, announces today it has published its Annual Report and Financial
Statements for the year ended 31 December 2024 (FY 2024).

Key Highlights

•     Launched Stellex; Datalex's next-generation Offer and Order
Management platform with  easyJet and Air Macau now live on Stellex.

•     Successfully migrated Air China and Edelweiss on to the Stellex
platform, who will benefit from the latest products enhancements.

•     Went live with Air Macau with Stellex Offer Management in
September 2024.

•     Continued to deliver multiple projects and activations for our
customers with a focus on growth for these airlines.

•     Invested in developing modular standalone products for both our
existing customers and new airline customers.

•     As a result of this, the Group was in a position to announce in
April 2025 the launch of DLX Pay, which is planned to go live with Air Transat
later in 2025. DLX Pay is a payment platform built exclusively with airline
challenges in mind. We believe there is a huge opportunity for airlines to
unlock value in this space, and Datalex is well positioned to help airlines
achieve this goal.

•     In 2024, we continued to invest in our Pricing AI product. In
2025, we have added capabilities that enable airlines to leverage their own AI
price prediction models, in addition to leveraging Datalex Pricing AI models.

•     Raised €25 million in equity, which enabled the Group to fully
repay its debt facility.

Commenting on today's announcement, Jonathan Rockett, Datalex CEO, said:

"We achieved several positive developments in 2024, including the launch of
our Offer and Order solution, Stellex, and the successful activation and
migration of four airlines to this new platform. Additionally, we raised €25
million in equity to strengthen our balance sheet.

Whilst it was disappointing to see revenue decline, after excluding
non-recurring revenue, the underlying performance and momentum in platform
revenue is promising. The financial performance in 2024 does not reflect the
progress made, and I am confident that the actions we have taken will deliver
stronger financial performance in 2025.

2025 has kicked off strongly with the launch of a new modular standalone
product, DLX Pay, which is planned to go-live with our launch customer, Air
Transat, later this year.

Our focus for 2025 is to drive strong platform revenue growth, improve
margins, and achieve EBITDA profitability."

Key Financial Highlights

                       2024        2023        YoY Growth (US$’M)     YoY Growth

                       (US$’M)     (US$’M)                            (%)
 Revenue               27.5        28.9        (1.4)                  (5%)
 Platform revenue      16.1        12.9        3.2                    24%
 Services revenue      10.2        14.1        (3.9)                  (27%)
 Consultancy revenue   1.0         0.9         0.1                    19%
 Other revenue         0.1         1.0         (0.9)                  (85%)
 Gross Profit          10.2        9.7         0.5                    5%
 Gross Margin          37%         34%         -                      3%
 Adjusted EBITDA((1))  (3.1)       (2.9)       (0.2)                  (7%)
 Loss after tax        (10.2)      (9.0)       (1.2)                  (13%)
 Cash at 31 December   6.4         5.8         0.6                    10%

(1)   Adjusted EBITDA is defined as earnings from operations before (i)
interest income and interest expense, (ii) tax expense, (iii) depreciation and
amortisation expense, (iv) share-based payments cost and (v) exceptional items

•     Revenue for FY2024 was US$27.5 million, a decrease of 5% y/y
(2023: US$28.9m). This decrease is primarily due to a number of customer
contracts ending in 2023, creating a drag on year-on-year growth given this
revenue did not recur in 2024.

•     Platform revenue increased by 24% to US$16.1 million (2023:
US$12.9 million), driven by ongoing customer activations and the transition of
customers to a SaaS licence and transaction fee model.

•     Services revenue decreased by 27% to US$10.2 million (2023:
US$14.1 million), primarily due to the cessation of contracts with
Scandinavian Airlines and Virgin Australia in 2023.

•     Consultancy revenue increased by 19% to US$1.0 million (2023:
US$0.9 million).

•     Other revenue of US$0.1 million (2023: US$1.0 million), reflected
the receipt of a previously written-off customer receivable.  The prior year
balance of US$1.0m is mainly attributable to one off customer termination fees
that did not recur in 2024.

•     Gross profit of US$10.2m grew 5% y/y (2023: US$9.7m) with gross
profit margin of 37% up  3% (2023: 34%), reflecting a shift in revenue mix to
higher margin platform revenues. It is a strategic priority to grow platform
revenue to enhance long-term profitability.

•     Total operating expenses increased by 5% to US$13.3 million (2023:
US$12.6 million), mainly due to higher insurance and IT expenses because of
inflationary pressures.

•     Adjusted EBITDA loss for the Group was US$3.1 million in 2024
(2023: US$2.9 million). The modest year on year increase is due to higher
operating expenses offsetting gross profit growth.

•     Loss after tax for the Group for 2024 was US$10.2 million (2023:
US$9.0 million), primarily due to increased interest and share-based payment
costs.

•     Cash as at 31 December 2024 totalled US$6.4 million (2023: US$5.8
million). Proceeds from the €25 million equity raise and strict cash
management offset operational and financing outflows.

Balance Sheet Developments

•     In September 2024, the Group successfully raised €25 million
(US$27.9 million) in equity, enabling full repayment of its debt facility and
providing working capital for product investment and growth opportunities.

•     At the date of repayment, 30 September 2024, the facility
comprised of a principal of €15 million (US$17.0 million) and accrued
interest of €4.1 million (US$4.4 million).

•     The Group intends to raise additional capital in 2025. However,
the exact amount and timing will depend on the pace of investment in the
Company's product portfolio, as well as the funding of working capital to
support the implementation of new revenue opportunities.

•     Subsequent to year end, the Group received a letter of support
from its former lender Tireragh Limited, confirming a willingness to provide a
backstop loan facility of €5 million (US$5.4 million) if an equity capital
raise is not completed by 30 June 2025.

Outlook

•     Actions taken in 2024 to strengthen Datalex's foundations and
competitive position have laid the groundwork for stronger financial
performance in 2025 and beyond.

•     Datalex enters 2025 with a solid recurring revenue base and
strengthened balance sheet having repaid the Group's loan facility. Our
financial ambition and priorities will be focused on growing total revenue
year on year, continuing to deliver strong platform revenue growth, expanding
gross profit margins, and restoring the business to EBITDA profitability.

•     A key focus will also be investing in our Stellex anchor solution,
advancing Stellex + opportunities, and raising capital to support future
growth.

2024 Results Presentation

Management will review the 2024 results on a webcast at 9am Dublin time on
Thursday, 15 May 2025. The webcast will be available on our website at
https://investors.datalex.com/reports-information/financial-calendar
(https://investors.datalex.com/reports-information/financial-calendar)

Annual Report

Datalex's 2024 Annual Report and Financial Statements are available to view on
www.datalex.com/investors and will shortly be available for inspection at
http://www.rns-pdf.londonstockexchange.com/rns/7307I_1-2025-5-14.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7307I_1-2025-5-14.pdf)

ENDS

 

Contact information

Investor Enquiries

Steven Moloney, Datalex plc

+353 1 806 3500

investor.relations@datalex.com

 

Media Enquiries

Eavan Gannon, Sodali

+353 87 236 5973

Datalex@sodali.com (mailto:Datalex@sodali.com)

 

About Datalex

Datalex is a market leader in airline e-commerce solutions. Datalex's Stellex
product suite, launched in 2024, gives airlines the tools they need to drive
revenue and profit as digital retailers. Datalex has a strong track record of
working with some of the most innovative airline brands worldwide. The Group
is headquartered in Dublin, Ireland, and maintains offices across Europe, the
Americas, and Asia. Datalex plc is a publicly listed company, on Euronext
Growth, Dublin. Learn more at www.datalex.com (http://www.datalex.com/) .

 

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