Published on: June 10, 2021
Sopheon builds momentum in H1 2021E
Sopheon’s AGM statement recaps the highlights of what was a very resilient performance in FY 2020. Importantly, the announcement also reports on an encouraging start to FY 2021E in terms of new business, Annualised Recurring Revenue (ARR) and revenue visibility for the year. With the latter metric some $4m ahead of where it was this time last year, we note the support that this implies for our current year estimates – although we leave our numbers unchanged at present given the importance of Q4 deal volumes to the outcome for the year as a whole. Customer retention has been strong and the level of new orders has shown improvement as the Group continues to conclude Software as a Service (SaaS) contracts. Sopheon retains a strong cash position (with net cash of $23.3m at the end of May 2021) and continues to see a strong appetite for innovation solutions. The group expects further hires and will invest in growth while appraising potential M&A opportunities. With its new senior hires settling in, we believe that Sopheon has demonstrated good momentum so far during the current year as it transitions to a SaaS model.