(Alliance News) - Checkit PLC on Thursday said its annual recurring revenue climbed during financial year 2023, as it transitions to a subscription-based model.
The Cambridge-based workflow management software provider said that annual recurring revenue at January 31 was GBP11.5 million, up 28% from GBP9.0 million a year ago. This was better than expected, with consensus market expectations amounting to GBP10.8 million
Checkit explained that ARR growth was better than expected during the second half of its financial year, driven by consistent sales momentum, with contracts signed offering further expansion opportunities underpinning the company's confidence in future growth.
It added that it has continued to expand in the US market, achieving 91% year-on-year ARR growth to GBP2.8 million, as a result of "a number of contract wins." It is expected that the US arm will become the company's largest revenue contributor.
However, non-recurring revenue declined compared to financial year 2022, coming in at GBP700,000 from GBP1.6 million. The company explained that this move was "planned."
Total revenue in the financial year to January 31 is expected to be GBP10.3 million, up 22% from GBP8.4 million.
Net cash at January 31 was GBP15.6 million, down from GBP19.5 million a year earlier.
Looking ahead, Chief Executive Officer Kit Kyte said: "We expect the positive sales momentum to continue and as we enter FY24, we will look to continue to expand our US presence and build on the successes of the past year."
The company also said it expects to continue to benefit from a strong balance sheet. It will provide a further update on outlook as part of its preliminary results to be issued by the end of April.
Shares in Checkit were up 2.6% to 30.78 pence each in London on Thursday afternoon.
By Sophie Rose, Alliance News reporter
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Checkit (CKT)