Strong revenue growth during period of upscaling for business
delivers results ahead of recently upgraded expectations
PCI-PAL PLC (AIM: PCIP), the global cloud provider of secure payment solutions for business communications, is pleased to announce a trading update for the year ended 30 June 2022.
The Board anticipates full year results to be ahead of the current market expectations with revenue growth of approximately 60% to £11.9m (2021: £7.4m). Adjusted loss before tax for the year is estimated to be £2.9m (2021: £3.5m).
The Company has continued to deliver strongly, driving its key indicator of future revenues, total annual contract value (TACV1), to £13.3m (2021: £9.5m), a 40% increase since 30 June 2021. Annual recurring revenue (ARR) at the end of the period increased by 43% to £11.0m (2021: £7.7m).
As well as these growth indicators, key retention metrics continue to perform well, with net revenue retention (NRR) at 118% and churn controlled to 3%.
The Group finished the year with cash of £4.9m (2021: £7.5m).
There is no further update on the unfounded patent case claims over and above that released to the market on 28 June 2022. The Board remains confident in its position on both the defence of the claims made and on the counterclaims made by the Company against its competitor Sycurio (previously known as Semafone).
Commenting on progress in the period, James Barham, Chief Executive Officer of PCI Pal, said:
"Following the successful equity placing in April 2021, we set ourselves some ambitious expansion plans for FY22. During this year of substantial growth, I am very pleased to say that we have delivered against these expanded objectives: broadening our geographic footprint by establishing businesses in Canada and Australia; as well as making further investment into product and engineering as we evolve our product roadmap to best take advantage of our Cloud platform, leading partner eco-system and rapidly expanding customer base.
"Our financial performance in the year is especially pleasing to me given it has been delivered against the backdrop of the unfounded patent claims being made against us, a very competitive recruitment market, and the recent global economic and geopolitical uncertainty. Our high customer retention rates and market-leading partner eco-system are a credit to both our products and services, as well as our team who make the difference.
"The Board is encouraged by the continued progress being seen by PCI Pal and is therefore confident in the outlook and prospects for the Group."
Notice of Results:
PCI Pal expects to announce its Final Results in the week commencing 5 September 2022.
Current market expectations for FY22 are:
Revenue £11.5 million
Adjusted Loss before Tax -£ 3.1 million
Cash £ 4.2 million
1TACV is the total expected annual recurring revenue from all contracted customers, whether invoiced and included in deferred revenue or still to be deployed and/or invoiced.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.
For further information, please contact:
Via Walbrook PR
James Barham - Chief Executive Officer
William Good - Chief Financial Officer
finnCap (Nominated Adviser and Broker)
+44 (0) 20 7227 0500
Marc Milmo/Simon Hicks (Corporate Finance)
Richard Chambers (Corporate Broking)
+44 (0) 20 7933 8780
Tom Cooper/Nick Rome
+44 (0) 797 122 1972
About PCI Pal:
PCI Pal is a leading provider of Software-as-a-Service ("SaaS") solutions that empower companies to take payments from their customers securely, adhere to strict industry governance, and remove their business from the significant risks posed by non-compliance and data loss. Our products secure payments and data in any business communications environment including voice, chat, social, email, and contact centre. We are integrated to, and resold by, some of the worlds' leading business communications vendors, as well as major payment service providers.
The entirety of our product-base is available from our global cloud platform hosted in Amazon Web Services ("AWS"), with regional instances across EMEA, North America, and ANZ.