Business
Half Year Trading Update and Notice of AGM
Half Year Trading Update and Notice of AGM.
About this update from Fadel Partners, Inc.
[{"type":"text","content":"\n\n31 July 2023\nFadel Partners, Inc.\n('FADEL', the 'Company' or, together with its subsidiaries, the 'Group')\nHalf Year Trading Update and Notice of AGM\nFADEL, the developer of cloud-based brand compliance and rights and royalty management software, provides a trading update for the six months ended 30 June 2024 (1H24).\n1H 24 Financial Highlights\n● Total revenue of $5.3M (1H23: $5.4M).\n● Recurring revenue declined 21% to $3.4m (1H23: $4.3m), partly due to renewal licence revenue on certain contracts shifting into 2H24 as in the prior year, and certain IPM customers chose to transition to their own hosted environments in 2H23 to remain compliant with their internal security and GDPR requirements. Pursuant to the terms of certain licenses signed in 2H23, U.S. GAAP revenue recognition requires that such contract types have their licence revenue recognised in full at a point in time, rather than pro-rata over the course of the license term, and therefore caused a temporary timing increase in revenue in 2H23. These annual contracts are expected to renew in 2H24 and hence the recognition of revenue will not reoccur until 2H24. \n● Conversely, service revenue increased 90% to $1.9m in 1H24 (1H23: $1.0m), reflecting the successful start of a new IPM customer implementation, as well as professional services in support of expansionary regional rollouts for existing IPM customers.\n● Adjusted EBITDA loss increased in 1H FY24 to $3.6M (1H FY23: 2.0M). The increase in losses was primarily driven by an increased level of investment in go-to market costs, as well as in part by the relatively flat level of revenues noted above.\n● Cash and cash equivalents stood at $1.9m as of 30 June 2024.\nLooking forward to the full year outcomes, the Board anticipates that the Company's FY24 revenue to be within the range of $14.8M to $15.8M, with an adjusted EBITDA loss between $2.3M and $1.9M. Due to the timing of revenue recognition for certain IPM customers, and the underlying growth in new business, the Company expects similar H2 weighting as in FY23, with a significant increase in 2H24 revenue expected compared to 1H24. The Company therefore expects to achieve positive adjusted EBITDA in 2H24, and a consequently lower ad...