Enterprise software company Sopheon reported a 19% improvement in revenue in its first half on Wednesday, to $16.5m (£12.03m).
The AIM-traded firm said its annualised recurring revenue reached $19.8m in the six months ended 30 June, from $16.5m a year earlier, which it said demonstrated “strong progress” on its software-as-a-service (SaaS) transition goals.
Gross annualised recurring revenue retention for the year to date stood at 97%, compared to 94% a year earlier.
Full-year 2021 revenue visibility was now at $31.2m, up from $25.5m at the same time last year, while the total contract value of signed bookings in the first half was 1.3x the comparable prior year period, with the total contract value of SaaS bookings at 1.5x.
Adjusted EBITDA was $2.8m in the first half, rising marginally from $2.6m year-on-year.
New senior leadership in product, marketing and sales was established in the period, with increased investments in product and marketing initiatives planned.
Net cash st period end stood at $24.1m, up from $21.9m at the same time last year, with the group debt free.
“Last year we embarked on a strategy to migrate to a recurring revenue model by prioritising SaaS contracts for new customers and encouraging existing customers to convert,” said executive chairman Andy Michuda.
“It is very rewarding to report rising commercial traction across our core performance metrics – with revenue, total contract value, annualised recurring revenue, retention, and current year visibility all showing significant progress and in many cases at historical highs, underpinning our expectations for the year.”
Michuda said that as expected, profit levels were rising more slowly through the SaaS transition period, reflecting the switch of revenue model and the rising investment in the business.
“Our key financial metrics and progress against strategic initiatives, coupled with our substantial cash reserves give us confidence that we are on the right path to deliver strong long term shareholder value.”
At 0953 BST, shares in Sopheon were up 10.8% at 975p.
