03 April 2023

D4t4 Solutions Plc

Trading update

D4t4 Solutions Plc (AIM: D4T4, "the Group", "D4t4"), the AIM-listed data solutions provider, provides the following trading update for the year to 31 March 2023.

Due to the delays in signing of a project with an existing banking customer which included a high proportion of low margin hardware, and a Celebrus multi-year contract with a new customer, results¹ are expected to be lower than management expectations, with full year revenues in the region of approximately £21.5 million (FY22: £24.5 million) and adjusted profit before tax² of approximately £3.5 million (FY22: profit £3.3 million). Revenue for the core business (i.e. excluding third party hardware sales) will be approximately £19.4 million (FY22: £17.5 million) which represents growth of 11% percent compared with the prior year. Both delayed projects are expected to sign in the first half of the new financial year.

Annual recurring revenue ("ARR" ³) from software licenses and associated support, maintenance and managed services (excluding the positive impact of currency revaluation of opening balances) is expected to increase by 14% to approximately £16.0 million (31 March 2022: £14.0 million; 30 September 2022: £14.4 million). This further underlines the Group's continued investment and focus in growing the Celebrus software business (CDP and FDP) with key wins in the second half that include a bank in Spain, a healthcare organisation in the US, and an insurance company in APAC. In addition, the second half included a key upsell of a large US Retail Bank to begin using the no-party data feature of Celebrus, CX Vault, which was launched in July 2022.

The cash balance was £17.7 million at 31 March 2023 (FY22: £11.4 million), with no debt.

The total sales pipeline grew by 27 percent during the year whilst the value of proposals out with potential and existing customers increased fourfold, providing strong visibility into performance for the first half of the new year, and reflecting the investment into sales, marketing, and customer success.

The Group will continue to invest in sales and marketing for the core business to build upon the growth in the year just ended. To offset the costs of that ongoing investment the Group will continue to optimise and streamline our operations.

The Group will publish its full year results on 11 July 2023.

¹ The trading performance reported in this statement is based on unaudited management accounts

² Adjusted profit before tax is calculated before amortisation of intangibles, foreign exchange gains/losses, share based payment charges and one-off reorganisation costs.

³ Annual Recurring Revenue is the amount of revenue currently contracted at a point in time that is expected to recur within the next twelve months.

Bill Bruno, CEO of D4t4 Solutions, said:

"Although the customer delays in closing the expected deals before our year end are frustrating, we are happy with the progress that we have made in growing our core business, focused on selling our Celebrus software in our key markets. We continue to build momentum with the new sales and marketing approach that has been put in place over the past year and look forward to a successful upcoming financial year for Celebrus." 

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as retained and applicable in the UK pursuant to S3 of the European Union (Withdrawal) Act 2018 ("MAR").

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About D4t4 Solutions plc

D4t4 Solutions plc (AIM: D4t4) was founded around a passion for helping brands create better relationships with their consumers via better data.

Supporting customers in financial services, retail, travel, healthcare, and telecommunications across 27 countries, D4t4 enables businesses to make smarter, informed decisions via Celebrus, the company's flagship first-party product suite. Celebrus automatically captures, contextualises, and activates user-based behavioural data in real-time across all digital channels. Through behavioural biometrics and analytics, Celebrus helps companies prevent fraud before it happens. Celebrus Cloud provides an enterprise platform that automates and enables organisations to get better value from the Celebrus software in a more efficient manner.

The Group has offices in the UK, USA, India, and Australia with key talent in all markets to drive the growth of the business. Celebrus is fully compliant with all major data privacy regulations and the Group is accredited to ISO27001: Information Security Management.

For more information, please see www.d4t4solutions.com