Sidetrade Reports 17% Revenue Growth and 44% Operating Profit Increase
Artificial intelligence platform Sidetrade announced its 2019 annual results, showing like-for-like revenue growth of 17% and a 44% increase in operating profit. The company forecasts continued growth and profitability for 2020.
Sidetrade, an AI-focused SaaS company, has released its fiscal year 2019 results, reporting a like-for-like revenue increase of 17% to €25.7 million and a 44% rise in operating profit to €2.3 million. The company anticipates continued growth and profitability in 2020, citing the robustness of its SaaS model despite the current economic climate.
The company saw a significant jump in new customer bookings, with annual recurring revenue (ARR) from new clients surging 88% to €4.8 million in 2019. This performance provides strong visibility for future revenue. The core Financials AI business grew by 17%, reaching €21.3 million, indicating growing demand for its advanced financial management platform.
The operating profit increase of 44% was driven by a stronger gross margin, which stood at 78% of sales. Software-as-a-service subscriptions accounted for 94% of this gross margin, underscoring the profitability of Sidetrade's business model. The company also invested an additional €2 million in sales and marketing to support its expansion.
As of December 31, 2019, Sidetrade maintained a solid financial structure with €5.3 million in gross treasury and minimal financial debt. The company has developed various budget scenarios to assess its financial resilience in the face of the ongoing crisis, aiming to navigate potential market shifts.