TIDMFADL
RNS Number : 0328H
Fadel Partners Inc.
25 July 2023
25 July 2023
Fadel Partners, Inc.
('FADEL', the 'Company' or, together with its subsidiaries, the
'Group')
Half Year Trading Update
Fadel Partners, Inc. (AIM: FADL), a brand compliance and rights
and royalty management software provider, is pleased to provide a
trading update for the six months ended 30 June 2023, based on
unaudited management accounts. Following the Company's successful
IPO in April 2023, FADEL has demonstrated strong operational
progress, underpinned by a solid financial performance. The
management team has made good progress in investing for growth, in
line with its stated strategy.
Focus on growing recurring revenue continues to be at the
forefront of the Group's strategy. The Board expects revenue for
the financial year ending 31 December 2023 (FY23) to be in line
with market expectations*, however 2H23 will show a significant
increase in revenue relative to 1H23 due to the timing of annual
contract renewals for certain enterprise licenses which are now
heavily weighted towards the Company's year-end. Recurring revenue
is expected to increase to c.80% of total revenue for FY23 (FY22
65%), reflecting positive growth expected from license and support
renewals and net new sales. Services revenue is expected to reduce
relative to the prior year, due to the successful completion of a
number of service contracts associated with the conclusion of the
implementation phase for certain IPM customers and phased regional
go-lives.
1H23 Financial Highlights
-- Revenue growth in line with the Board's expectations.
-- Recurring revenue growth of 3% to $4.3m 1H23 (1H22:
$4.2m).
-- Service revenue of $1.0m 1H23 (1H22 of $2.5m) reflects
the successful completion of a number of implementations
and regional roll-outs for existing clients.
-- Cash and cash equivalents of $8.2m at 30 June 2023 (net
cash $7.3m).
Operational Highlights
-- Since the IPO, FADEL has invested in the further development
of its sales team including hiring Frank Matticola as
Chief Revenue Officer and five further new salesperson
/ lead generation hires complemented by product management,
sales support and administration hires to build out phase
I of the sales team expansion, greatly expanding our
go to market capacity and capabilities.
-- Our Brand Vision offering is attracting a great deal
of interest amongst enterprise clients. The latest Content
Tracking product release in 2Q23 introduced AI based
image and video matching and crawling, now capable of
searching for brand marketing content in image and video
form across the web and social media. Video Tracking
is proving to be a much-needed solution to a challenging
problem many multi-national brands have been unable to
solve to stay compliant with their marketing content
and its digital distribution.
-- It has become increasingly clear that many of our existing
and prospective customers have needs for the solutions
provided by both of our product families, namely IPM
Suite and Brand Vision, presenting a number of cross-selling
and up-selling opportunities. We are actively engaged
with many companies discussing what combinations of our
offerings may best suit their needs.
-- We continue to invest in our product offerings with new
features and functionality being rolled out in our quarterly
releases for both IPM Suite and Brand Vision.
Post Period Highlights
-- Good progress post IPO in building and converting our
pipeline of opportunities with signatures for several
deals in the Life Sciences, Publishing and Tobacco industries
now concluded bringing recurring revenue total contract
value (TCV) of >$700k in aggregate and associated services
of $30k.
-- In addition, we have signed a number of new contracts
and renewals with a TCV of >$800k for Support, further
contributing to our recurring revenue in 2H23 and beyond.
Notice of Interims
The Group expects to announce its full interim results in the
third week of September.
* FY23 consensus revenue estimate: $14.6m.
Tarek Fadel, Chief Executive Officer of FADEL, commented:
"The first half of 2023 was another milestone period for FADEL.
We delivered a successful IPO and then began, in earnest, the
process of building the business for the next phase of its growth
journey.
"It has become increasingly clear that many of our existing and
prospective customers have needs for the solutions provided by both
of our product families and we are delighted about the future
prospects for the Company.
"The successes in the year have further consolidated our
position as a leader in the digital content and intellectual
property market and provide a strong platform to take advantage of
significant market opportunities available to us.
"I am pleased to report that trading for FY23 continues to be in
line with expectations and the services revenue decline shows two
clear and positive trends: we are concluding a phase of bringing a
number of world-scale enterprise customers onboard which provides
capacity for the next phases of growth, and we are increasing a
recurring revenue bias to our income with some 80% of revenue now
being recurring."
This announcement contains inside information for the purposes
of the retained UK version of the EU Market Abuse Regulation (EU)
596/2014 ("UK MAR").
For further information please contact:
Tarek Fadel, Chief Executive Officer Via Alma PR
Vicary Gibbs, Chief Financial Officer
finnCap Limited (Nomad & Broker) 020 7220 0500
Jonny-Franklin Adams, Emily Watts, Abigail
Kelly, Milesh Hindocha (Corporate Finance)
Tim Redfern, Sunila De Silva (ECM)
Alma PR Tel: +44(0)20 3405
0205
Josh Royston fadel@almapr.co.uk
Matthew Young
Andy Bryant
About FADEL Partners Inc.
FADEL is a developer of cloud based brand compliance and rights
and royalty management software, working with some of the world's
leading licensors and licensees across media, entertainment,
publishing, consumer brands and hi-tech/gaming companies. The Group
combines the power of rights management and content compliance with
sophisticated content services, AI-powered visual search and image
and video recognition.
FADEL has two solutions, being IPM Suite (rights and royalty
management for publishers and licensing) and Brand Vision (an
integrated platform for Brand Compliance & Monitoring that
includes Content Services, Digital Rights Management, AI-Powered
Content Tracking, a Brand Monitor, and 100 million Ready-to-License
Images).
The Group's main country of operation is the United States,
where it is headquartered in New York, with further operations in
the UK, Lebanon, France, Canada and India. Founded in 2003 by Tarek
Fadel (Chief Executive Officer), FADEL has since grown to a team of
116 full time employees, plus an additional pool of c.50-60
contractors.
For more information, please visit the Group's website at:
www.fadel.com .
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END
TSTSELEDLEDSESW
(END) Dow Jones Newswires
July 25, 2023 02:00 ET (06:00 GMT)
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