Sidetrade: 2020 Annual Results (+55%)
Very strong growth in Income (+14%), in Operating Profit
(+55%) and in Net Profit (+55%)
Reinforced financial structureAcceleration of
Fusion100 plan via Amalto acquisition and confirmation of the
ambition to reach a turnover of $100M by 2025
Sidetrade (Euronext Growth: ALBFR.PA), the
AI-powered Order-to-Cash platform, announces another year of
impressive growth, with revenue up 14% in 2020, and a dramatic 55%
increase in net earnings.
Olivier Novasque, Chairman and CEO of Sidetrade,
"2020 will be remembered as the year when an
unprecedented crisis put the resilience of business models to a
grueling test. To ride out the crisis, two requirements became
urgent as never before: accelerate digital transition, and
safeguard cash flow. For Sidetrade, 2020 was a banner year, with
outstanding performance in sales and net earnings, along with
overall strengthening of our financial structure. Never have we
been so strong, and so ready to play a major role in the
Order-to-Cash (O2C) market, which represents a potential of $10bn,
given that less than 5% of businesses which would benefit from O2C
technology are actually equipped with it.
“For Sidetrade, the particular conditions of the
year acted as a powerful catalyst for carrying out our Fusion100
strategic growth plan. Sidetrade has an undeniable technological
lead in AI-powered O2C solutions, based on over $2,400bn in B2B
transactions in our cloud. Moreover, now that we are integrating
the unmatched performance of Amalto’s paperless B2B exchange
solutions, Sidetrade is well-positioned as the partner of choice
for world-class businesses.
“More than ever, we are absolutely confident in
the pursuit of our profitable growth trajectory. We will not stray
from our Fusion100 plan of reaching sales of $100m by the year
2025. We have what it takes to be a global champion in a booming
Another year of double-digit growth: revenue up 14% and
results up 55%
2020 accounts have been audited and will be certified after
finalization of procedures required for the annual financial
Record backlog once again in 2020
Over the whole of fiscal year 2020, Sidetrade
broke its record for enterprise account customers, with the
addition of 45 subscribers joining the Sidetrade Cloud (vs. 37 in
2019). Enterprise accounts now represent 97% of bookings. The
company is repeating its 2019 record performance in terms of
bookings, with annual recurring revenue (ARR) from new enterprise
accounts totaling €4.03 million (vs. €4.16 million in 2019),
despite 2020 Q1 being hugely impacted by the sudden halt in
economic activity. These new enterprise accounts have committed to
average initial contract periods of 38.1 months (vs. 33.8 months in
2019), with a total value of new contracts signed of €11.95m (vs.
€11.1 million in 2019).
Attrition remains under control for enterprise
accounts with a churn rate of 5.6% as of 31 December, 2020, which
represents an excellent result for the SaaS industry, whose average
was 13.9% according to the “2020 SaaS survey results - Covid
edition" by KeyBank Capital Markets (31 May, 2020).
Annual Income up an impressive
Sidetrade posted annual revenue of €29.2m for
2020, up 14%. This steady growth, quarter after quarter, is purely
organic, and demonstrates the attractiveness of Sidetrade's
offering in a business environment where cash collection has
literally been a vital issue for companies. Sidetrade’s SaaS model,
where 89% of revenue is recurring, has proven its resilience in the
face of an economic crisis.
Dramatic increase in operating profit (+55%)
and net profit (+55%)
Operating profit reached €3.6m in 2020, up 55%
against 2019 (€2.3m).
This great performance can be explained by a
€3.1m rise in gross margin, reaching €23.1m, i.e. 79% of revenue.
SaaS subscriptions contributed 92% of this gross margin, confirming
the incremental profitability of Sidetrade’s pure SaaS model.
Sidetrade achieved outstanding results in 2020,
while continuing to invest heavily in sales and marketing (€2.6m,
up 15%) to support future business development. At the same time,
the unprecedented context of the COVID-19 pandemic actually
generated savings of €0.8m, linked mainly to the fall in expenses
such as travel and event marketing.2020 operating profit includes a
French Research tax credit of €1.8m (vs €2.0m in 2019), as well as
activation of €0.2m in marginal R&D costs (virtually identical
Corporate income tax is estimated at €0.05m in
2020 vs -€0.03m in 2019.
Finally, 2020 net profit was €3.4m, up 55%.
Reinforced financial structure
Sidetrade further strengthened their financial
structure, with €14.3m in gross cash at year end (vs €5.3m in
2019). Financial debt remains virtually nil at €0.3m. Sidetrade
also holds 66,000 of its own shares with a value of €7.8 million as
of 31 December 2020.
Unlike many firms, Sidetrade has had no need for
emergency financial measures to withstand the COVID economy: there
has been zero need for French government financial support, and
jobs have been maintained without short time working.
A leap forward in Sidetrade’s Fusion100 plan
with Amalto’s acquisition and confirmation of the ambition to reach
a turnover of $100M by 2025
Sidetrade's strategy is guided by a growth plan,
dubbed Fusion100, to reach $100M in revenue by 2025, with a
compound annual growth rate between 20% and 25% (vs. a mean of 15%
for the last two years).
This Fusion100 plan has three key drivers:
Innovation: maintain the Sidetrade substantial lead in AI, and add
further features to its platform, to provide the most comprehensive
solution on the market. To accomplish this, €14m will be invested
in R&D in the next 24 months.Expansion: Sidetrade is doubling
its European sales force to power up its leadership position, and
also accelerating its international growth with the ramp up of
North American operations.External growth: On 12 April 2021,
Sidetrade announced the definitive acquisition of Amalto, a North
American specialist in SaaS for paperless B2B financial exchanges.
With Amalto’s cutting-edge technology, and solid North American
client base, this acquisition is a huge leap forward, both in terms
of innovation and expansion. Amalto will be consolidated into
Sidetrade’s accounts as from 1 April 2021.This is an extraordinary
opportunity. As the offerings of the two companies are very
complementary, the mutual potential for sales development is
fabulous. Amalto will enrich the Sidetrade platform with new
features, such as paperless order processing and e-billing. This
technology will be all the more important in Europe as e-invoicing
becomes mandatory under EU regulations. Furthermore, Amalto’s
strong client base, with around 40 large American companies gives
Sidetrade prime access to the North American Order-to-Cash market,
which is hyper-strategic for Sidetrade’s global development.
communications2021 First Quarter Revenue: 4 May 2021 (after
stock market closes)
Media relationsChristelle Dhrif+33 6 10 46 72 00 /
relationsAmanda Bunn+44 7595 768 277 /
(www.ww.sidetrade.com)Sidetrade (Euronext Growth:
ALBFR.PA) is a fast-growing international SaaS company unlocking
customer value. Sidetrade’s next-generation AI, nicknamed Aimie,
analyzes huge amounts of B2B customer payment behavior data to
intelligently automate the order-to-cash process. Based on
predictive analytics, Aimie delivers actionable recommendations in
real time to enhance retention, upsell/cross-sell, and cash
collection. Aimie is a real game-changer in augmented intelligence-
a system whereby individuals and machines work together faster and
smarter. Sidetrade has a global reach, with 250 talented employees
in Paris, London, Birmingham, Dublin, Amsterdam, Houston, and
Calgary, and customers in 80 countries. Nearly 3,000 large and
mid-size businesses in an array of industries count on Sidetrade
technology to outperform the competition.
information, visit us at www.sidetrade.com and follow us on Twitter
In the event of any
discrepancy between the French and English versions of this press
release, only the French version is to be taken into account.
- Sidetrade: 2020 Annual Results
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