AGM Statement
08/06/2023 07:00
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RNS Number : 0229C Sopheon PLC 08 June 2023
SOPHEON PLC
("Sopheon" or the "Company")
AGM Statement
Sopheon plc, the InnovationOps (https://www.sopheon.com/innovationops)
software company, holds its Annual General Meeting ("AGM") today. The Board
takes this opportunity to give shareholders the following update and review of
the business.
2022 in review
Sopheon exited 2022 with two successful acquisitions and grew from a single
product company to a family of four products, tripling Sopheon's addressable
market to almost $3 billion. Sopheon's combined family of InnovationOps
solutions offer a compelling and unique value proposition for companies:
automate and provide a single source of truth to eliminate the innovation
stalls, stumbles and failures that are completely avoidable in even the most
chaotic of times. Each of our offerings are focused on specific innovation
tasks that, when brought together with the people and processes across the
organization, make InnovationOps a reality.
Our financial performance in 2022 illustrates the initial success of our
efforts. ARR(1) increased 17.4% to $24.3m (2022) compared to $20.7m (2021).
Top line revenue rose to $36.8m compared to $34.4m in 2021. At constant
currency, revenue would have exceeded $38m, representing 10% organic growth.
Total contract value (TCV) of all sales closed in the year exceeded $30m up
35% year over year - with the exceptional outperformance attributable to
signing the largest single deal in our history with the US Navy. Adjusted
EBITDA(2) improved by almost 12%, rising to $6.9m (2022: $6.2m) while taking a
$1.6m write down in respect of technology investments superseded by the
acquisitions.
2023 update and outlook
Following the impressive conclusion to 2022, in the first part of the current
year we have maintained our drive on embedding our execution priorities as
outlined in last year's annual report:
• Focus on SaaS/cloud sales
• Broadening our product offerings
• Introducing new pricing models
• Embed new leadership structures
• Continued customer centricity
These efforts have been accompanied by continued commercial progress. Since
the start of the year, we have closed five new customer wins for Accolade, all
SaaS, alongside several extension orders from existing customers. ARR has
risen 18% to $25.7m compared to $21.7m a year ago, and year-to-date gross
retention has held above 99%. Full year revenue visibility(3) for recognizable
2023 revenue is currently at $31m, compared to $28m at this time last year.
Management's confidence in our expected full year outturn is underpinned by a
sales pipeline that includes major extensions with existing customers,
alongside new prospects. Net cash at the end of May stood over $22m.
Sopheon has an incredible team of employees, our SaaS solution revenue
continues to grow, and the balance sheet remains very strong to fuel
additional acquisition and investment. The recent appointment of Barney Kent,
former COO of Ideagen plc, as a non-executive Director underlines our
commitment to both organic growth and M&A activities.
Sopheon's Chairman Andy Michuda said: "As I stated previously, we are now
working to deliver rising velocity to our business, with an ambition to double
run-rate revenue every four years alongside world class margin and retention
metrics. In the early part of 2023, we have been very focused on further
refining the three new products introduced in 2022 and are exploring further
M&A opportunities. In parallel, both major new account wins and client
expansion sales have delivered a further boost to visibility; and we remain
busy with a number of sales opportunities as we approach the traditionally
stronger second half of the year."
For further information contact:
Andy Michuda (Chairman) Sopheon plc + 44 (0) 1276 919 560
Arif Karimjee (CFO)
Carl Holmes / George Dollemore (Corporate Finance) finnCap Ltd + 44 (0) 20 7220 0500
Alice Lane / Sunila de Silva (ECM)
About Sopheon. Sopheon (LSE: SPE) empowers organizations to change the world
while achieving exceptional long-term revenue growth and profitability. By
operationalizing the entire innovation life cycle, Accolade® and Acclaim™
software and expertise enable innovation, product and project professionals to
accomplish the full range of InnovationOps tasks to drive innovation at scale.
Sopheon's industry leadership was highlighted in the comprehensive
MarketsandMarkets™ report on the Innovation Management market, in which
Sopheon was listed in the "Stars" category, the highest recognition. Sopheon's
solutions have been implemented by hundreds of blue-chip customers with over
137,000 users in 50 countries. Sopheon is listed on the AIM Market of the
London Stock Exchange. For more information, please visit www.sopheon.com
(http://www.sopheon.com) .
(1) ARR is the annual value of all ongoing contracts for SaaS, hosting and
maintenance in force at the measurement date including pending renewals and
starts, including those which are contracted but conditional on acceptance
decisions scheduled later in the year, but excluding confirmed terminations.
(2)Adjusted EBITDA is defined and reconciled in Note 5 of Sopheon's 2022
annual report which is available from the investor section of www.sopheon.com
(http://www.sopheon.com) .
(3) Revenue visibility comprises revenue expected from (i) closed license
orders, including those which are contracted but conditional on acceptance
decisions scheduled later in the year; (ii) contracted services business
delivered or expected to be delivered in the year; and (iii) recurring
maintenance, hosting, SaaS and rental streams. The visibility calculation does
not include revenues from new sales opportunities expected to close during the
remainder of the year.
Sopheon(®), Accolade(®) and Acclaim™ are trademarks of Sopheon plc. All
other trademarks are the property of their respective owners.
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 it forms part of United Kingdom domestic law by virtue of the European
Union (Withdrawal) Act 2018 (as amended) ("UK MAR").
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