Record €7.5m quarterly revenue despite the financial crisis
Strong 15% revenue growth
Record €6.1m bookings in Q2 2020
Sidetrade (Euronext Growth: ALBFR.PA), the Artificial Intelligence platform dedicated to accelerating company revenue and cashflow, reports a record-breaking second quarter, with remarkable growth in revenue and orders despite the severity of the Covid crisis.
Olivier Novasque, CEO of Sidetrade, had this to say about Q2 2020 achievements:
"Income and bookings achieved an unparalleled level this second quarter despite the overall state of the economy. Even with all of our staff teleworking, we still achieved the best quarter of our history in terms of sales, with €6.1m in new contracts signed. This performance is the fruit of years of work on innovation, especially AI. Additionally, Sidetrade’s position perfectly meets the needs of today’s businesses striving to boost and secure cashflow in an increasingly digital world. Current market dynamics are actually strengthening our leadership position at home and abroad. I would once again like to thank our teams for meeting the present challenges with creativity and dedication. I also want to thank our customers for their continuing trust during difficult times.”
Record €7.5m revenue growth demonstrates the resilience of the SaaS model
| Sidetrade |
| 2020 |
| 2019 |
2020 data is consolidated and unaudited.
Following up on an excellent first quarter (+14%), Sidetrade kept-up the momentum, achieving 15% organic growth compared to Q2 2019 (€6.6m). Sidetrade’s Q2 2020 revenue was €7.5m, the highest in their history.
Thanks to their SaaS business model, Sidetrade is weathering the crisis well. More than ever, the resilience of the company’s recurrent SaaS model allows them to stand strong. In fact, 89% of Sidetrade’s quarterly revenues are recurrent, one of the highest ratios in the software industry.
Record €6.1m bookings in Q2 2020
The Covid crisis has brought to light just how crucial it is to secure cashflow, which has been good for Sidetrade’s sales.
In Q2 2020, Sidetrade demonstrated their capacity for adaptation and innovation by tracking the impact of the Covid pandemic on unpaid invoices. The freely accessible tracker showed changes in the payment behaviour of 3.7m businesses since the start of the year in the United Kingdom, France, Spain, Italy, Belgium and the Netherlands.
The crisis has also shown many CFOs the urgency of digitally transforming their business processes. A PwC survey conducted in May 2020 established that 48% of finance departments were accelerating automation and developing new ways of working. Similarly, a recent Gartner survey reported that finance directors intend to maintain, rather than reduce, investments in technologies such as Artificial Intelligence, automation and predictive analysis. 24% plan to invest more in process automation and 20% in cloud technologies.
This trend is a real boon for Sidetrade, whose AI technology aims to shorten payment delays. In the second quarter of 2020, the company clinched a record €6.1m of new deals, including €4.9m in recurrent contracts. These new large enterprise deals are for an average initial commitment period of 38 months, representing €1.6m in annual recurring revenue (ARR) against €1.3m in Q2 2019.
Large enterprise attrition remains well under control, with a rate of just 4.2% as of 30 June 2020 vs. 5% as of 30 June 2019.
In Q2 2020, Sidetrade also extended their geographic reach with such prestigious new customers as Veolia (France), Air Liquide (15 European countries), PageGroup (UK, Ireland, US, Canada, South Africa, Middle East), Chubb (Australia, New Zealand, Canada), Bidcorp Group (UK), Bunzl (Canada), G4S (Ireland), Cordant Group (global), Atnahs (UK), Impellam (UK), and Howden (Europe, US, Australia).
After the first half of the year performance, management is confident that it will weather the crisis with double-digit growth in 2020.