D4T4.L Regulatory News (D4T4)

24 October 2022

D4t4 Solutions Plc

H1 trading update

Results in line, further gains in ARR and pipeline opportunities

D4t4 Solutions Plc (AIM: D4T4, "the Group", "D4t4"), the AIM-listed data solutions provider, provides the following trading update for the six months to 30 September 2022.

Results1 are expected to be in line with management expectations, with revenues of approximately £8.1 million (H1 FY22: £7.5 million) and adjusted losses before tax2 of approximately £1.3 million (H1 FY22: profit £0.1 million) reflecting continued second half weighting as well as the ongoing investment into the business. Annual recurring revenue ("ARR" 3) increased during the period to £15.8 million (31 March 2022: £14.0 million). Of this increase £0.4 million arises from customer wins, with £1.4 million arising from the period-end revaluation of ARR contracts in foreign currency.

Whilst a significant proportion of Group revenues are US Dollar denominated a large part of reported revenues for the period derive from the reversal of deferred revenue balances held at the last year-end and are hence converted to revenue at that historic rate, rather than the more favorable rates now prevailing. Further detail on the effects of currency fluctuation on reported results will be given in the interim results announcement.

The Group has continued to invest into Sales and Marketing, including development of a direct sales channel which is showing clear signs of being able to shorten sales cycles, building upon a strong pipeline. We now have an increasing number of sales opportunities in the final stages of the funnel providing good revenue visibility and underpinning the Board's confidence in again delivering full year results in line with management expectations.

The cash balance at the half year end was robust at £26.2m reflecting the unwind of year end receivables, and the Group remains debt free.

The Group will publish its half year results for the six months to 30 September 2022 on 30 November 2022, and will be hosting a capital markets day for analysts and investors on the afternoon of 1 December 2022. This will be at the offices of finnCap at 1 Bartholomew Close, London EC1A 7BL and will be available live via the Investor Meet Company platform. Further details will be announced in due course.

1 The trading performance reported in this statement is based on unaudited management accounts

2 Adjusted profit before tax is calculated before amortisation of intangibles, foreign exchange gains/losses, share based payment charges and one-off reorganisation costs.

3 Annual Recurring Revenue is the amount of revenue currently contracted at a point in time that is expected to recur within the next twelve months.

Bill Bruno, CEO of D4t4 Solutions, said:

"Our business continues to be second half weighted as expected, but with good revenue visibility to meet management expectations for the full year. Our continued investment in Sales and Marketing has created a strong direct pipeline of opportunities, which are showing promising signs of shortening the sales cycle in our business that has been historically longer. We continue to further our investment in driving ARR across both the CDP and FDP products and remain focused on executing successfully during the second half of our year." 

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About D4t4 Solutions plc

D4t4 Solutions plc (AIM: D4t4) was founded around a passion for helping global enterprises derive value from their data assets.

Supporting customers in financial services, retail, travel, healthcare, and telecommunications across 27 countries, D4t4 enables businesses to make smarter, informed decisions via Celebrus, the company's flagship first party product suite. Celebrus CDP automatically captures, contextualises, and activates user-based behavioural data in real-time across all digital channels. Through behavioural biometrics and analytics, Celebrus FDP helps companies prevent fraud before it happens. Celebrus CDM provides an enterprise platform that automates the integration and transformation of customer data from all relevant data sources, whether on-premises or cloud, to deliver customer and regulatory analytics.

The Group has offices in the UK, USA, India, and Australia with key talent in all markets to drive the growth of the business. Celebrus is fully compliant with all major data privacy regulations and the Group is accredited to ISO27001: Information Security Management.

For more information, please see www.d4t4solutions.com