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Published on: August 24, 2017

Solid interims show good momentum

Sopheon has reported good interim results with revenues just below half of our full year estimate and adjusted EBITDA just above. The announcement highlights a growing sales pipeline and good revenue visibility for the full year. Higher first half licence revenue was spread across a broad customer profile while maintenance and hosting revenues also increased. Annualised recurring revenues (ARR) improved to U$10.5 million at the end of H1. The outlook statement is positive and the Group says that it is considering the introduction of a formal dividend policy. We note the positive momentum in the business with a broad range of customers adopting Accolade for an increasingly wide range of applications. Although we leave estimates unchanged for now, the balance of risk appears to be on the upside, and we see the results as a clear and positive step in the right direction. We will revert with further analysis on the back of the company’s upcoming customer event.

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