ALBFR SideTrade

All-time performance for half-year bookings

• €7.42 million in new Annual Contract Value (ACV): up 25%
• With €3.95 million in SaaS subscriptions (ARR): up 20%
• And €3.47 million in Services bookings: up 32%
• United States now represents 45% of total bookings

Strong revenue growth, up 19%, with SaaS subscriptions up 18%

• Robust revenue growth in the United States, up 40%
• International markets now account for 60% of revenue, with 32% in the United States

Leverage effect on the operating margin, up 44% to 15% of revenue (vs. 12% in H1 2023)

Surge in net profit to €3.6 million: up 64%

Strengthened financial position, even after the acquisition of SHS Viveon AG

Sidetrade, the global leader in AI-powered Order-to-Cash applications, announces revenue up 19% with a 64% increase in net profit for the first half of 2024. Sidetrade confirms its ability to combine growth and profitability.

2024 information is from consolidated, unaudited data.
*Operating margin corresponds to operating profit based on 2024 accounting standards in France, including the French Research Tax Credit.

Olivier Novasque, CEO of Sidetrade commented:
“Sidetrade once more delivered its best half-year to date with double-digit growth across the board in terms of financial indicators. This performance reflects a significant leverage effect on the operating margin (+44%) and net profit (+64%). Despite an uncertain economic and political backdrop on both sides of the Atlantic, in this first half, Sidetrade illustrated the robustness of its growth driver, at the same time achieving a new record in bookings – almost balanced between Europe and the United States – with substantial revenue growth. Although by tradition, the third quarter is the weakest, a strong fourth quarter – on the bookings front – could sustain this 2024 momentum and further increase revenue visibility for 2025.

The additional €3 million in gross margin generated over these six months gave us significant scope to continue investing ambitiously (up by €1.9 million compared to H1 2023). We've primarily focused on our own artificial intelligence – namely, Aimie – and have successfully integrated the first Generative AI features into our product offering. Despite the increase in investments, the operating margin surged by around 300 basis points in this first half, now reaching 15% of revenue, compared to 12% in the first half of 2023 – a standout profitability for the industry. In addition, the €6.2 million in operating cash flow generated over the first half was more than sufficient to fully self-finance the SHS Viveon AG acquisition, for a net total of €4.6 million, excluding related costs.

On balance, Sidetrade is fully equipped to focus on its three main priorities for the coming quarters: 1/ Becoming the global Leader in Generative AI-powered Order-to-Cash applications, leveraging proprietary technology to create unmatched value for its customers, 2/ Expanding further in the United States, 3/ Strengthening our leader status in Europe, particularly through the growth of the DACH region, accelerated by the acquisition of SHS Viveon AG. Staying true to its proven model which combines growth and profitability, Sidetrade will continue to establish itself as a key global player in the Order-to-Cash space. We are more committed than ever to executing our Fusion100 strategic plan, aiming for $100 million in revenue by the end of 2026.”

All-time performance for half-year bookings: ACV up 25%

2024 information is from consolidated, unaudited data.

In H1 2024, Sidetrade set another record for bookings, adding €7.42 million in New Annual Contract Value (ACV), representing a substantial increase of 25%.

This first-half performance is partly due to the Company’s success in North America since it represents New ACV of €3.34 million, accounting for 45% of total bookings. Sidetrade’s development model now shows a near-perfect balance between North America (45%) and Europe (55%). Within Europe, France accounted for 31% of total bookings, serving as a relative contributor to Sidetrade’s future growth.

New SaaS bookings (New ARR) totaled €3.95 million, up 20% on H1 2023, reaching an unprecedented level for a first half in Sidetrade's history, even though Q2 2023 remains the best-performing single quarter to date in terms of bookings. Q1 and Q2 2024 recorded more regular and steadier new SaaS bookings compared to the same periods last year, posting €1.85 million (Q1 2024) and €2.10 million (Q2 2024) versus €0.89 million (Q1 2023) and €2.41 million (Q2 2023). Overall, in H1 2024, Total Contract Value (TCV) increased to €12.24 million.

Parallel to this, services bookings, with almost all invoiced within 12 months of their signing, totaled €3.47 million for the first half of 2024, up 32% on the same period the previous year. This strong increase is still attributed to the multiplication of global projects.

This first-half 2024 performance reflects the upward trend in bookings observed during the 2023 fiscal year, further validating the relevance of the Company’s strategic decisions, namely: 1/ A business strategy kick-started 24 months ago, with a focus on companies generating $1 billion-plus revenue, 2/ An increased recognition by multinationals of Sidetrade's technological edge in AI, particularly in the United States, 3/ The development of a comprehensive Order-to-Cash software suite, resulting from a strategy of continuous innovation.

Strong revenue growth, up 19%, with SaaS subscriptions up 18%
The Company’s revenue for the first half of 2024 totaled €24.8 million, also reporting an increase of 19%, attributable to:

• Robust revenue growth in the United States, up 40%

Quarter after quarter, the United States is a growth driver for Sidetrade, posting revenues up 40% to €7.9 million in H1 2024. International markets account for 60% of the Company’s total revenue, with 32% coming from North America. Going forward, the United States will continue to be pivotal for Sidetrade's growth.

• Ever-increasing demand from multinational corporations

Analysis of Sidetrade’s customer profiles is underpinned by growth of 34% in subscriptions with multinational corporations on annual recurring revenue (ARR) contracts in excess of €250,000. These subscriptions now account for 47% of Sidetrade's total subscriptions and are expected to remain a growth driver in the quarters ahead. 

• Consolidation of CreditPoint Software business

Since its consolidation on July 1, 2023, CreditPoint Software has positively contributed to Sidetrade's performance. In H1 2024, this business generated revenue of €0.8 million, with a 4% impact on the Group’s quarterly growth.

In H1 2024, revenue for Order-to-Cash SaaS subscriptions was up considerably, by 18%.

Leverage effect on the operating margin, up 44% to 15% of revenue

• Significant increase in gross margin, up 18% at 80% of revenue

Sidetrade’s gross margin stood at 80% of revenue for H1 2024 (vs. 81% in H1 2023) and 92% on SaaS subscriptions (vs. 93% year-over-year). Over this period, the Company recorded a €3.0 million incremental increase in gross margin compared with H1 2023.

This strong performance is fueled by the contribution of SaaS subscriptions, which now account for 95% of the Company’s total gross margin. It also reflects a business strategy promoting Sidetrade’s technological edge in AI, and tight cost control despite an inflationary environment.

• Operating margin at 15% of revenue (vs. 12% in H1 2023)

In H1 2024, the Company’s operating margin came out to €3.6 million, up 44% year-over-year (€2.5 million). This profitability was driven by vigorous revenue growth, an excellent gross margin and efficient cost control.

This marked progress enabled Sidetrade to continue its investment policy, with an increase of €1.9 million versus H1 2023, with a particular focus on R&D (+€1.3 million) notably to integrate Generative AI into the core of its product (see press release).

In H1 2024, operating margin included a French Research Tax Credit of €1.4 million (vs. €1.3 million in H1 2023 as well as marginal capitalization of R&D costs at €0.1 million, i.e. 2% of R&D costs for the half-year.

As a result, Sidetrade's operating margin stands at 15% of revenue, an increase of three points compared to the 12% recorded in H1 2023.

Surge in net profit to €3.6 million: up 64%

Sidetrade’s net financial income for H1 2024 stood at €0.3 million, up significantly year-over-year     (-€0.03 million). This performance is mostly due to interest earned on short-term investments and exchange rate gains achieved during the first half.

Corporate income tax for H1 2024 was estimated at €0.3 million (vs. the same amount a year earlier).

All told, Sidetrade’s net profit for the first half of the 2024 fiscal year was €3.6 million, up 64%, confirming a new level of profitability and a solid balance between growth and profitability.

Strengthened financial health, even after the acquisition of SHS Viveon AG

The first half of 2024 enabled the Company to considerably increase its operating cash flow to €6.2 million.

As of June 30, 2024, Sidetrade reported €24.0 million in gross cash, ending at the same position as of December 31, 2023, despite acquiring SHS Viveon AG for a net total of €4.6 million (acquisition of €6 million in shares offset by €1.4 million in available cash at SHS Viveon AG). Parallel to this, Sidetrade held 85,600 of its own shares for a value of €15.2 million at end-June.

With a financial debt of €9.1 million (reduced by €1.2 million), in addition to acquiring SHS Viveon AG, Sidetrade preserves its acquisition capacity to accelerate its expansion.

Expansion in the DACH region, boosted by SHS Viveon AG

On May 6, 2024, Sidetrade opened a public tender offer for SHS Viveon AG, a German leader in credit risk management software (see press release). Following approval by the Munich Stock Exchange to delist SHS Viveon AG’s shares, Sidetrade extended its offer to July 29, 2024 (see press release). To date, Sidetrade owns 88.01% of SHS Viveon AG’s capital, cementing its position as the majority shareholder.

SHS Viveon AG’s business will be consolidated into the Group’s financial statements from July 1, 2024. For Sidetrade, this acquisition presents a new opportunity to grow in the DACH region (Germany, Austria, Switzerland and eastern European countries) and further strengthen its position worldwide.

Next financial announcement
Third Quarter Revenue for 2024: October 15, 2024, after the stock market closes.
Investor relations
Christelle Dhrif                00 33 6 10 46 72 00           cdhrif@sidetrade.com
Media relations
Becca Parlby                  00 44 7824 5055 84           bparlby@sidetrade.com
About Sidetrade (www.sidetrade.com)
Sidetrade (Euronext Growth: ALBFR.PA) provides a SaaS platform dedicated to securing and accelerating cash flow. Sidetrade’s next-generation AI, nicknamed Aimie, analyzes $6.1 trillion worth of B2B payment transactions daily in the Sidetrade Cloud to predict customer payment behavior and the attrition risk of more than 38 million buyers worldwide. Aimie recommends the best operational strategies, dematerializes and intelligently automates Order-to-Cash processes to enhance productivity, results and working capital across organizations.
Sidetrade has a global reach, with 400+ talented employees based in Europe, the United States and Canada, serving global businesses in more than 85 countries. Amongst them: Bidcorp, Biffa, Bunzl, Engie, Expedia, Inmarsat, KPMG, Lafarge, Manpower, Opentext, Page, Randstad, Saint-Gobain, Securitas, Sodexo, Tech Data, UGI, and Veolia.Sidetrade is a participant of the United Nations Global Compact and adheres to its principles-based approach to responsible business.
For further information, visit us at www.sidetrade.com and follow @Aimie on LinkedIn.

In the event of any discrepancy between the French and English versions of this press release, only the French version is to be taken into account.

Attachment

• Sidetrade: Best half-year ever, with double-digit growth in all financial indicators

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