RNS Number : 4936H
Datalex PLC
20 March 2024
 

 Datalex plc

 

Full Year Trading Update for Year ended 31 December 2023

 

 

Dublin, Ireland, 20 March 2024: Datalex plc ("Datalex", the "Company" or the "Group") (Euronext Growth Dublin: DLE), a market leader in airline e-commerce solutions, today provides an update on trading for the period 1 January 2023 to 31 December 2023.

 

2023 was a turnaround year for the global aviation industry. Datalex benefitted from this recovery and reports positive revenue growth in 2023, as passenger traffic volumes further recover and airlines continue to invest in their e-commerce technology.

 

Key Highlights:

 

The Group expects to report the following headline figures for the year ended 31 December 2023 (unaudited):

 

›       Total revenue for 2023 was $28.9 million, a 23% year-on-year increase (2022: $23.5 million).

›       Platform revenue increased by 3% to $11.5 million (2022: $11.1 million) and services revenue increased by 47% to $16.4 million (2022: $11.2 million). Services revenue growth is primarily attributable to the increased volume of activation and transformation projects that occurred in 2023. These projects will positively impact platform revenue in future years.

›       Total operating costs before exceptional items in 2023 increased by $0.3 million to $35.3 million (2022: $35.0 million).

›       Adjusted EBITDA loss of $2.9 million for 2023, which is an improvement of $2.4 million versus 2022 (2022: Adjusted EBITDA loss $5.3 million).

›       Loss after tax for the Group for 2023 fell to US$9.1 million compared to a loss after tax in 2022 of US$11.5 million.

›       Our cash as at 31 December 2023 totalled US$5.8 million (2022: US$6.5 million). A net cash outflow from operations (US$7.1 million) and outflows to fund product development (US$1.4 million) were offset in part by proceeds of borrowings (US$8.6 million), contributing to a decrease in cash of US$0.8 million during the year.

 

Outlook:

 

The Group entered 2024 with a strong recurring revenue base and has a solid pipeline of growth that will be unlocked as new customers are activated further. During periods of heavy activation, services revenue will be elevated relative to platform revenue. Activations timelines are dependent on customer requirements. As go-live milestones are achieved, higher margin platform revenue is expected to materially drive revenue growth, with expectations that this will be most pronounced commencing in 2025.

 

Jonathan Rockett, CEO, commented:

 

"The Group achieved a number of positive milestones during 2023 that have set a solid foundation for 2024 and beyond.

A significant step in 2023 was the renewal of our partnerships with Air China, Air Transat, JetBlue, Edelweiss and Aer Lingus. In addition to these renewals with existing customers, the Group entered into new partnerships with LATAM Airlines and Air Macau in 2023. Another highlight was EasyJet going live with our Merchandiser product - being the start of a multi-year activation project.

We have a number of transformation projects continuing in 2024 and 2025 for our new and existing customers. These projects are important steppingstones to unlock value for our customers and for Datalex.

We are currently reviewing our longer-term strategy and how we can maximise long-term value creation for our customers and shareholders. A key focus for the Group is to ensure that we continue to prioritise operational excellence across all areas of our business. Efficiency and productivity will be important to achieve our goal of improving bottom line performance in addition to top line revenue growth. Further updates will be furnished when appropriate".

 

Notice of results for full year 2023 will be issued in due course and details will be available on the Company website https://investors.datalex.com once finalised.

 

ENDS

 

Contact Information

 

Investor Enquiries

Neil McLoughlin, Datalex plc

+353 1 806 3500

investor.relations@datalex.com  

 

Media Enquiries

Eavan Gannon, Powerscourt

+353 87 236 5973

Datalex@powerscourt-group.com   

 

About Datalex

 

Datalex's purpose is to transform airline retail. Datalex is a market leader in airline retail technology, offering unique products that enable airlines to drive revenue and profit as digital retailers. Datalex has a strong track record of delivering digital retail transformation for progressive airline brands worldwide. The Group is headquartered in Dublin, Ireland, and maintains offices across Europe, the USA and China. In 2023, Datalex was awarded the 'Great Place to Work®' and 'Best Workplaces in Tech™' certifications. Datalex plc is a publicly listed company, on Euronext Growth, Dublin. Learn more at www.datalex.com

 

Disclaimer

 

This announcement contains forward-looking statements. These statements relate to the future prospects, developments and business strategies of Datalex. Forward-looking statements are identified by the use of such terms as "believe", "could", "envisage", "estimate", "potential", "intend", "may", "plan", "will" or variations or similar expressions, or the negative thereof. Any forward-looking statements contained in this announcement are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialise, or if underlying assumptions prove incorrect, Datalex's actual results may vary materially from those expected, estimated or projected. Any forward-looking statements speak only as at the date of this announcement. Except as required by law, Datalex undertakes no obligation to publicly release any update or revisions to any forward-looking statements contained in this announcement to reflect any change in events, conditions or circumstances on which any such statements are based after the time they are made.

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