Sidetrade

2020 Annual Results (+55%) - Seite 2

2020 accounts have been audited and will be certified after finalization of procedures required for the annual financial report.

Record backlog once again in 2020

Over the whole of fiscal year 2020, Sidetrade broke its record for enterprise account customers, with the addition of 45 subscribers joining the Sidetrade Cloud (vs. 37 in 2019). Enterprise accounts now represent 97% of bookings. The company is repeating its 2019 record performance in terms of bookings, with annual recurring revenue (ARR) from new enterprise accounts totaling €4.03 million (vs. €4.16 million in 2019), despite 2020 Q1 being hugely impacted by the sudden halt in economic activity. These new enterprise accounts have committed to average initial contract periods of 38.1 months (vs. 33.8 months in 2019), with a total value of new contracts signed of €11.95m (vs. €11.1 million in 2019).

Attrition remains under control for enterprise accounts with a churn rate of 5.6% as of 31 December, 2020, which represents an excellent result for the SaaS industry, whose average was 13.9% according to the “2020 SaaS survey results - Covid edition" by KeyBank Capital Markets (31 May, 2020). 

Annual Income up an impressive 14%

Sidetrade posted annual revenue of €29.2m for 2020, up 14%. This steady growth, quarter after quarter, is purely organic, and demonstrates the attractiveness of Sidetrade's offering in a business environment where cash collection has literally been a vital issue for companies. Sidetrade’s SaaS model, where 89% of revenue is recurring, has proven its resilience in the face of an economic crisis.

Dramatic increase in operating profit (+55%) and net profit (+55%)

Operating profit reached €3.6m in 2020, up 55% against 2019 (€2.3m).

This great performance can be explained by a €3.1m rise in gross margin, reaching €23.1m, i.e. 79% of revenue. SaaS subscriptions contributed 92% of this gross margin, confirming the incremental profitability of Sidetrade’s pure SaaS model.

Sidetrade achieved outstanding results in 2020, while continuing to invest heavily in sales and marketing (€2.6m, up 15%) to support future business development. At the same time, the unprecedented context of the COVID-19 pandemic actually generated savings of €0.8m, linked mainly to the fall in expenses such as travel and event marketing.
2020 operating profit includes a French Research tax credit of €1.8m (vs €2.0m in 2019), as well as activation of €0.2m in marginal R&D costs (virtually identical to 2019).

Corporate income tax is estimated at €0.05m in 2020 vs -€0.03m in 2019.