Published on: January 25, 2021

A strong Q4 and good visibility into FY 2021E

Sopheon’s trading update for the end of 2020 shows that the historical weighting to Q4 for revenues again produced a strong end to the year, ahead of Q4 2019. Revenue is expected to total around $30.0m with Adjusted EBITDA of c. $5.6m. We reintroduce estimates for FY 2020E which reflect those numbers. The proportion of recurring revenue increased again during FY 2020E. That mix shift within strong sales bookings growth of 23% during the year means that much of the associated revenue will be recognised future years. With ongoing sales traction, we continue to see Sopheon as well-positioned with highly appropriate solutions which meet the needs of businesses to innovate and digitalise at a faster pace.  Sopheon is proving itself highly capable of selling despite the Covid-19 challenges, and we believe the group’s products will become more relevant and more in demand precisely because of the race to digitalisation that Covid has so clearly accelerated.