(Alliance News) - Sopheon PLC on Thursday said annual profit increased with rising revenue, while its outlook for 2023 was positive, noting a growing sales pipeline.
The Surrey, England-based enterprise software provider said 2022 pretax profit was USD1.3 million, rising 8.3% from USD1.2 million in 2021.
This was in line revenue climbing 7.0% to USD36.8 million in 2022 from USD34.4 million in 2021, while 2022 revenue represented a 0.8% improvement from Sopheon's own forecast of USD36.5 million for 2022 in late January.
Adjusted earnings before interest, tax, depreciation and amortisation rose 13% to USD6.9 million in 2022 compared to USD6.1 million in 2021, while 2022 adjusted Ebitda was 1.4% below Sopheon's forecast of USD7 million.
Sopheon declared a 3.25 pence dividend payments to shareholders for the full year, unchanged from a year earlier.
Shares in Sopheon were up 15% to 660.00p each in London on Thursday late morning.
Chair Andy Michuda commented on the results: "Sopheon delivered solid growth with record annual recurring revenue last year, and acquisitions and new products tripled our multi-billion-dollar addressable market."
Annual recurring revenue at the start of 2023 matched Sopheon's forecast from late January, rising 17% to USD24.3 million from USD20.7 million a year earlier.
During 2022, Sopheon integrated two acquisitions, and launched three software-as-a-service products - Acclaim Ideas, Acclaim Projects and Acclaim Products - expanding its addressable market by USD2 billion.
Looking ahead, Sopheon said it aim to double run-rate revenue every three-to-four years, which it anticipates will require "a contribution from acquisitions, on top of accelerated organic growth, plus constant improvements in structure, policies, processes, and systems".
"In one of the most chaotic business environments I've seen in my career, the opportunity for Sopheon has never been greater," Michuda added.
"We start 2023 with a strong foundation of ARR, a stable of new products, and a growing sales pipeline. I look ahead with both excitement and confidence, anticipating continued delivery this year alongside rising velocity in our business."
Net cash at December 31 stood at USD21.1 million, down 13% from USD24.2 million a year earlier, which it said reflected currency movements, mergers and acquisitions and other factors. It stressed it has no debt and has always had cash balances spread across multiple global banks.
By Greg Rosenvinge, Alliance News reporter
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