TIDMFDP
RNS Number : 2186V
FD Technologies PLC
04 April 2023
4 April 2023
FD Technologies plc
("FD Technologies" or the "Group")
FY23 trading update
FD Technologies (AIM: FDP.L, Euronext Growth: FDP.I) announces a
trading update for the year ended 28 February 2023 ahead of full
year results expected to be announced on 23 May 2023.
Our progress was led by KX and First Derivative. As the engine
for real-time analytics in the cloud, KX continues to experience
significant, growing momentum. We are excited by the opportunities
arising from its market position, enabled by the investments made
in product and go-to-market.
Seamus Keating, Group CEO, said: "KX and First Derivative have
performed strongly, with both revenue and EBITDA ahead of our
expectations, as each business strengthened its market
position.
KX in particular has made strong commercial and strategic
progress, driven by our market-leading ability to deliver 100x the
performance at one tenth of the cost of alternative solutions.
These advantages are particularly compelling for hyperscale cloud
providers, resulting in a range of initiatives which we are
progressing with our partners that provide further confidence in
our outlook.
First Derivative also performed strongly and continued to
deliver impressive revenue growth of 18% for the period. We
continue to see multi-year strategic growth drivers that will
underpin demand for our services.
We have set ourselves ambitious but sustainable growth targets
for the years ahead which will ensure we are focused on driving
high-quality recurring revenue growth from an expanding list of
customers across a wide range of industries, while generating long
term value for shareholders."
Highlights
-- Group revenue is expected to be approximately GBP296m,
representing growth of 12%, despite the strengthening
of the dollar against sterling in H2.
-- Group EBITDA is expected to be approximately GBP35m, with
strong performances at KX and First Derivative offset
by a weak demand environment at MRP.
-- Strong cash management in H2 resulted in a net cash position
at the year end of GBP0.4m, compared to net debt of GBP7.4m
at end August 2022.
-- KX delivered a strong performance, ahead of guidance,
with revenue of approximately GBP80m and ARR* of GBP65m,
a 39% increase on the prior year.
-- Recent KX successes include the general availability of
kdb Insights Enterprise on Microsoft Azure, the industry's
first Data Timehouse, together with new customer wins
including Syneos Health and PSE, the Polish national electricity
transmission system operator.
-- First Derivative delivered revenue of approximately GBP174m,
representing growth of 18%, ahead of our guidance for
the year; MRP revenue was approximately GBP41m, a decline
of 19%, primarily due to macro-economic conditions.
Business unit performance
KX made significant strategic progress during the year, meeting
or beating every key performance indicator, and increasing our
confidence in its sustainable growth prospects. Over the last year,
incremental annual contract value (ACV)** almost doubled to GBP19m
and ARR grew by 39%, highlighting our sales success during the
period. We broadened and deepened our strategic partner base, added
significant new customers across our target markets, continued to
make kdb easier to adopt and use - driving improved time-to-value
to attract new customers - and made significant enhancements to our
go-to-market strategy.
Throughout the year, we have seen an increasing proportion of
new bookings from our initiatives with our partners, particularly
the hyperscale cloud vendors. We also recently announced the
general availability of kdb Insights Enterprise on Microsoft Azure,
a watershed moment in our strategic partnership with Microsoft, as
we work to enable companies in all sectors to access the power of
kdb for enhanced operational and commercial outcomes.
First Derivative had another strong year with both revenue and
EBITDA ahead of our expectations. We believe that the business is
well-positioned to deliver sustainable double-digit revenue growth
and margin improvement.
MRP, which represents 14% of our revenue, continued to
experience a weaker demand environment through the year. We took
further action to align the cost base during H2, which will benefit
the current year.
Outlook
Our mission in KX is to accelerate the speed of data and
AI-driven business innovation across all enterprises through
real-time analytics, with kdb as the engine that enables the
processing and analysis of time series and machine data for smarter
decision making wherever that is a critical business
requirement.
To deliver this goal we are engaged in multiple discussions with
existing and potential new partners and customers on commercial
opportunities. The breadth of these discussions and our confidence
in our prospects underpins our FY24 guidance for KX to achieve ARR
growth of at least 35%.
First Derivative continues to perform well, with revenue growth
in excess of 10% expected combined with a meaningful improvement
towards our three-year target of a 15% EBITDA margin. At MRP we
expect the lower cost base to deliver an improvement in EBITDA for
the year.
*ARR is the value at the period end of recurring software
revenue to be recognised in the next twelve months, formerly
defined as 'exit annual recurring revenue'
**ACV is the sum of customer contracts signed during the period
divided by the number of years in the contract
Enquiries
For further information please contact:
FD Technologies plc +44(0)28 3025 2242
Seamus Keating, Chief Executive Officer www.fdtechnologies.com
Ryan Preston, Chief Financial Officer
Ian Mitchell, Head of Investor Relations
Investec Bank plc (Nominated Adviser
and Broker)
Carlton Nelson
Virginia Bull +44 (0) 20 7597 5970
Goodbody (Euronext Growth Adviser
and Broker)
David Kearney
Don Harrington
Finbarr Griffin +353 1 667 0420
J.P. Morgan Cazenove (Broker)
James A. Kelly
Mose Adigun +44 (0) 203 493 8000
FTI Consulting LLP (Financial PR) +44 (0) 20 3727 1000
Dwight Burden FDtechnologies@fticonsulting.com
Victoria Caton
About FD Technologies
FD Technologies is a group of data-driven businesses that unlock
the value of insight, hindsight and foresight to drive
organisations forward. The Group comprises KX, the leading
technology for real-time continuous intelligence; First Derivative,
which provides technology-led services in capital markets; and MRP,
the only enterprise-class, predictive Accounts Based Marketing
solution. FD Technologies operates from 14 locations across Europe,
North America and Asia Pacific, and employs more than 3,100 people
worldwide.
For further information, please visit www.fdtechnologies.com and
www.kx.com
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