Published on: January 30, 2023
Getting in step for the SaaS jump forward
Sopheon’s trading update for the year ended 31 December 2022, issued today, shows a strong performance at the revenue level, in line with market expectations, and adjusted EBITDA comfortably above expectations. Net cash of $21m is in line with our estimate, down on last year principally because of the currency movements on Euro and Sterling deposits and the extended payment terms on the US Navy contract announced in July, as well as M&A payments. ARR at the year-end is expected to have been $24.3m. With this strong growth in SaaS, Sopheon has announced that it is ceasing to sell perpetual licenses to new customers – a significant strategic and operational milestone on Sopheon’s path to being a globally scaling SaaS business. We have adjusted our FY23 forecasts down to reflect this but introduce FY24 forecasts with a strong bounce back in revenue and profit.