Alfa Financial Software Holdings PLC (ALFA) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone and welcome to Alpha's 2025 half-year results. I'm Andrew Denton, Alpha's CEO, and I'm joined as always by our CFO, Duncan McGrath, and our COO, Matthew White. In overview, Alpha has had an outstanding first half. We've continued to focus on growing subscription revenue, and we've seen that grow by 17%. We've also seen strong growth in subscription TCV at 12% versus the first half of last year. This year, for the first time, and in subsequent years, we will be publishing annual recurring revenue and net revenue retention. Duncan will outline the detail behind this, but in summary, we've seen annual recurring revenue of 42 million, which is up 16% on the first half of last year, and net revenue retention of 112%. I'm delighted with the growth in annual recurring revenue, and our net revenue retention figure shows that Alpha's industry-leading customer retention is just as strong in a SaaS-only world as we grow our customer base with new subscription sales. Subscription revenues now make up 34% of total revenues, and we have 23 Alpha Cloud customers, which is up from 20 this time last year. More generally, we've seen strong sales and delivery momentum continue through from the full year. The late stage pipeline is strong with seven prospects. We're working under letters of engagement or equivalent with six of those seven customers in the late stage pipeline. And really importantly, we are seeing normal levels of activity in the early stages of the pipeline. From a delivery perspective, we've again seen a strong period and I'm delighted to say that we now have nine customers live on Alpha System 6, which underscores our messaging around this breakthrough new version of our software. Alpha System 6 is a frictionless upgrade opportunity for our existing cus...