MINNEAPOLIS, March 24, 2022 (GLOBE NEWSWIRE) -- Sopheon plc, the international provider of software and services for Enterprise Innovation Management solutions, today announced its results for the year ended December 31, 2021, together with an outlook for the current year.
Financial Highlights:
- Revenue of $34.4m, ahead of market expectations in the face of continued COVID challenges, whilst embedding the SaaS transition (2020: $30.0m)
- ARR1 rose from $18.0m at the start of 2021 to $20.7m at the end of the year
- Full year 2022 revenue visibility2 stands at $25.1m (last year at this time: $24.5m)
- Gross retention at 95% (2020: 91.5%)
- Adjusted EBITDA3 of $6.2m (2020: $5.9m) also ahead of market expectations
- Profit before tax of $1.2m (2020: $1.7m) affected by higher amortization and share based payments
- Net cash of $24.2m (2020: $21.7m) and the Group has no debt
- Dividend to be maintained at 3.25p per share (2020: 3.25p)
Operational Highlights
- 10 new customer wins of which 9 were SaaS, driving rising quality of earnings and demonstrating the successful shift to a SaaS model. Looking forward, the license pipeline for new customers approaching 90% SaaS. Another six existing clients (2020: 4) were converted to SaaS as part of the Group’s SaaS Uplift program.
- Acceleration of product investment resulted in a higher delivery pace for enterprise Accolade releases. In parallel, investment in cloud-native solutions, with a first application targeted at expanding the Accolade user community. Initial application to launch mid-2022.
- We stepped up marketing programs and investment significantly in 2021 to extend market reach, prospect engagement and ultimately lead generation. This expanded go-to-market strategy is geared to increase new customer acquisition, reducing reliance on large customers who require particular capabilities, and to address a broader target market in order to improve scalability and predictability.
- The acquisition of ROI Blueprints business added deep project management capability eliminating the need for customer purchase and integration of third-party tools in that area.
- Greg Coticchia was appointed CEO during the year, also introducing new leadership in sales, marketing and product areas.
“2021 was a year of new leadership, new processes, new programs, and extensive organizational change, together with solid financial outcomes and an initial acquisition,” said Andy Michuda, Chairman of Sopheon. “With the initiation of change behind us and the organizational structure and leadership in place, 2022 is very much focused on accelerating and operationalizing the effectiveness of this change. I believe that the future is bright for Sopheon and for Sopheon shareholders.”
To review the financial release in its entirety, please visit here.
To learn more about how Sopheon is transforming enterprise innovation, visit our website at www.sopheon.com.
ABOUT SOPHEON
Sopheon (LON: SPE) partners with customers to provide complete Enterprise Innovation Management solutions, including software, expertise, and best practices to achieve exceptional long-term revenue growth and profitability. Sopheon’s Accolade solution provides unique, fully-integrated coverage for the entire innovation management and new product development life cycle, including strategic innovation planning, roadmapping, idea and concept development, process and project management, portfolio management, and resource planning. Sopheon’s solutions have been implemented by over 250 customers with more than 60,000 users in over 50 countries. Sopheon is listed on the AIM Market of the London Stock Exchange.
Media Contact
Chloe Shoobridge
Sopheon
Email: Chloe.Shoobridge@sopheon.com
1ARR is annual recurring revenue at a point in time, being the value of recurring SaaS, maintenance and hosting revenue streams normalized to a one-year period.
2Revenue 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.
3Adjusted EBITDA is defined as earnings before interest, tax, depreciation, amortization and share-based payment charges.
Sopheon® and Accolade® are registered trademarks of Sopheon plc.
