REG - FD Technologies PLC - Trading Statement

FD TechnologiesAnnouncement

25/03/2025 07:00

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RNS Number : 9472B  FD Technologies PLC  25 March 2025

FD Technologies plc

Trading update for the 12 months ended 28 February 2025

25(th) March 2025

Strong FY25 performance with annual contract value ("ACV") at top end of
guidance range and cash EBITDA above top end of consensus expectations

 

                 FY25(1)   FY24    YoY (+/-)
 £ million       Expected          Expected
 ARR(2)          81.8      72.5    +13%
 ACV(3) added    18.0      13.5    +33%
 Cash EBITDA(4)  (14.6)    (18.8)  NM

 

 §   KX continued to execute well in the second half of the year, delivering FY
     bookings growth at the top end of our guidance range and ahead of
     consensus(**) expectations, with £18.0 million annual ACV (FY24: £13.5
     million), +33 per cent YoY.
 §   KX achieved a significant milestone, with annual recurring revenue exceeding
     $100 million(*) for the first time, after constant currency growth of 13 per
     cent to £81.8 million (FY24: £72.5 million), in line with the guidance
     range.
 §   Cash EBITDA was ahead of guidance and above the top end of consensus
     expectations with a loss of £14.6 million (FY24: loss of £18.8 million).
 §   Proven use cases are driving the adoption of KDB.AI, which facilitates
     real-time AI-powered research assistance, anomaly detection, predictive
     analytics in capital markets, and satellite imagery analysis and signal
     processing in aerospace and defence.
 §   Market demand for time-series AI is growing as industries shift towards
     real-time, context-aware AI. KDB.AI's ability to seamlessly combine historical
     and real-time data with low-latency AI processing sets it apart as a category
     leader.
 §   Following the divestment of MRP (retaining a 49 per cent associate investment
     in the resulting merged entity, PharosIQ) and First Derivative, we returned
     £120 million to shareholders and KX closed the year with £56 million net
     cash and no debt.
 §   We enter FY26 with a strong and growing pipeline of expansion and new
     opportunities across capital markets, aerospace and defence, and industrial
     IoT. This gives us confidence at this early stage in the year that we can
     achieve FY26 ARR growth of at least 20%.

Seamus Keating, Group CEO of FD Technologies, commented:

"We made significant strategic and operational progress in FY25. With
accelerating ARR growth and better-than-expected operating leverage, KX
delivered a strong performance based on good ongoing execution. We
restructured our business to focus solely on KX, returned £120 million of
value to shareholders, and ensured that KX is well capitalised to execute its
strategy for growth and profitability."

Ashok Reddy, CEO of KX, added:

"The strong bookings growth in the period demonstrates that our strategy is
working and reflects the benefits of our investments to enhance our
go-to-market operations and simplify adoption. We enter FY26 with a strong and
growing pipeline of expansion and new opportunities across capital markets,
aerospace and defence, and industrial IoT, and view the outlook for the year
with confidence."

(*) £81.8 million ARR restated in US dollars was $103.1 million, using the
US$/£ exchange rate of 1.26 on 28 February 2025.

(**) On 28 February 2025, the company-compiled analyst mean consensus
estimates indicated £16.7 million in ACV added during the period (range
£16.0-17.0 million), £82.8 million in ARR (range £81.2-84.5 million), and
an £18.5 million Cash EBITDA loss (range of £16.3-20.1 million loss). The
consensus included estimates from six analysts.

 

(1) All figures are only for KX's continuing operations and exclude the
divested First Derivative business.

(2) Annual recurring revenue: the total value of recurring software revenue
expected to be recognised over the next 12 months, on the final day of the
reporting period.

(3) Annual contract value: the sum of the value of each customer contract
signed during the year divided by the number of years in each contract.

(4) Earnings before interest, tax, depreciation and amortisation adjusted to
exclude share-based payments, capitalised R&D, and exceptional items.

 

Contacts

 

 FD Technologies plc

 Seamus Keating, Chief Executive Officer           www.fdtechnologies.com (http://www.firstderivatives.com)

 Ryan Preston, Chief Financial Officer             investors@kx.com (mailto:investors@kx.com)

 Derek Brown, SVP Investor Relations

 Investec Bank plc - Nominated Adviser and Broker  +44 (0)20 7597 5970

 Carlton Nelson

 Virginia Bull

 Goodbody - Euronext Growth Adviser and Broker     +353 1 667 0420

 Don Harrington

 Jason Molins

 Tom Nicholson

 J.P. Morgan Cazenove - Broker                     +44 (0)20 3493 8000

 James A. Kelly

 Mose Adigun

 FTI Consulting - Financial PR                     +44 (0)20 3727 1000

 Matt Dixon                                        fdtechnologies@fticonsulting.com (mailto:fdtechnologies@fticonsulting.com)

 Dwight Burden

 Victoria Caton

 

About KX

KX is on a mission to make AI a commercial reality for the many by addressing
data challenges that impede deployment at scale. By simultaneously ingesting
and analysing high volumes of historical and real-time data, KX's AI-ready
analytical database enables organizations to unlock the full value of their
data to accelerate innovation and make faster, more confident decisions.

 

KX is the world's most performant, cost-effective and energy-efficient
analytical database, delivering advanced data algorithms, insights and
analytics at unmatched scale and speed. KX is trusted by the world's top
investment banks, Aerospace and Defence, high-tech manufacturing and health
and life sciences organisations and operates across North America, Europe, and
Asia Pacific.

 

For further information, please visit www.fdtechnologies.com
(http://www.fdtechnologies.com)

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