(Boursier.com) — The turnover of side trade posted growth of 12% in the first quarter of 2022 to 8.4 ME. Beyond this performance, Sidetrade notes that international continues to progress very strongly to reach 49% of turnover for the first time, with the United States representing 19% of the total.
‘Order-to-Cash’ activities are growing very strongly, at +19% in the first quarter of 2022, driven in particular by a 21% growth in their SaaS subscriptions. The increase in these recurring revenues is the result of record order intake in fiscal year 2021, which will continue to materialize in revenue growth throughout fiscal year 2022. Order-to-Cash activities , at the heart of the company’s strategy since 2019, now represent 96% of total revenue.
In the first quarter of 2022, Sidetrade posted a new record for SaaS orders dedicated to Order-to-Cash, which will generate additional revenue from subscriptions on an annual basis of 2.17 ME against 0.94 ME in the first quarter of 2021 , representing growth of +132%. In addition to these SaaS orders, there are 1.09 ME of additional services on an annual basis (implementation, configuration, training, recurring services, etc.) against 0.81 ME in the first quarter of 2021. Consequently, all order intake in the first quarter of 2022 represents a total value of new contracts on an annual basis of 3.27 ME against 1.75 ME in Q1 2021, an increase of +87%. The average initial contract term for new customers (excluding renewals) increased to 40.8 months compared to 36.2 months for the first quarter of the previous financial year.
Sidetrade recalls that its economic model makes it possible to display a very strong resilience of its activity with 90% of recurring income, which constitutes a significant asset in the current economic situation. The robustness of its model is based on the signing of multi-year contracts. These consist of an initial commitment period of 36.25 months on average per year, followed by successive periods of the same duration. With a controlled attrition rate between 5% and 6% on average for ‘Order-to-Cash’ solutions, the average duration of a Sidetrade client is around 20 years.
With such long subscription periods, Sidetrade systematically re-indexes all of its contracts on the evolution of consumer price indices (Syntec for Southern Europe, UK CPI for Northern Europe or even the US CPI for the United States), and reflects price changes each year on the total amount of subscriptions. In addition to the fact that the increase in the cost of cash and salaries increases the appetite of financial departments for Order-to-Cash solutions, Sidetrade’s economic model demonstrates by construction, a very good Pricing Power thus protecting revenues society’s future from inflationary pressures.