Growth in first half turnover

New orders up 42%, and record half year with € 3.04 million in new annual recurring revenue
USA – a new growth driver with 58% of total new orders
Strong increase in Order-to-Cash SaaS revenues to +19%
Double-digit growth in turnover to +11%
Inflation generates solid pricing power for Order-to-Cash solutions

Sidetrade (Euronext Growth: ALBFR.PA), the global AI-powered Order-to-Cash SaaS platform, today announces new record orders in H1 2022, up 42%, a +19% increase in Order-to-Cash SaaS revenues and a +11% increase in total revenue for the period.

Olivier Novasque, CEO of Sidetrade commented:

«Sidetrade has just delivered the best half-year in its history, and has surpassed all previous records in new orders and revenues for our Order-to-Cash activities.

“The sharp return of inflation, more interest rate hikes and wage increases are creating a growing need among companies around the world for solutions that ensure and accelerate cash flow generation. At the same time, the recognition of Sidetrade by Gartner® as one of three global leaders for integrated invoicing cash applications the group’s international profile confirms the relevance of investments in artificial intelligence, Sidetrade’s recent commercial successes clearly demonstrate this technological advantage, marking a one – year milestone since our successful arrival in the US and reaffirming our offensive strategy for North America. Less than a year after starting our US business, Sidetrade has already achieved more than half of its new orders in the region by winning major contracts over its two main US competitors.

“Now we know we have what it takes to be well established in this region, and the gradual escalation of our sales and marketing teams will quickly consolidate Sidetrade’s position as one of three leaders in the world’s number one market. The United States already represents a robust growth driver, and the start of a scale change for Sidetrade is now underway. “

New orders up 42% and record half year with € 3.04 million in new annual recurring revenue
In the first half of 2022, Sidetrade set a record for Order-to-Cash SaaS orders that will generate an extra € 3.04 million in annual recurring income (“ARR”), compared to € 2.14 million in H1 2021; +42% increase. The total value of these new subscription contracts over their initial contract periods (excluding renewals and services) represents € 9.95 million of total contract value (“TCV”) in the first half of 2022 against 6.32 million euros in the first half of 2021, a +57% increase.

To these SaaS orders should be added 1.77 million euros in services on an annual basis (implementation, configuration, training, repetitive services, etc.), compared to € 1.37 million in H1 2021, a +29% increase. In total, and taking into account that almost all of these services will be invoiced within the next twelve months, H1 2022 makes it possible for Sidetrade to add similar € 4.81 million in annual contract value (“ACV”) compared to € 3.51 million in H1 2021; one +37% increase.

The first contract period for new customers (excluding renewals) increased 44 monthscompared to 36 months in the previous financial year. This length of the contract period illustrates outsourced trust in Sidetrade solutions and increases visibility over future revenues. It should be noted that as with all existing contracts, these include new contracts an annual automatic price re-indexation clause based on changes in price indices for the country in question.

USA – a new growth driver with 58% of total new orders
I H1 2022, international orders represented more than 74% of all ordersdriven by unparalleled momentum in sales with world-leading organizations.

Sidetrade surpasses its goals in North America
One year after the business was launched in North America, Sidetrade exceeds its targets (to achieve more than a third of its orders in the region by H2 2022) and already reports 58% of new orders in the US which includes exceptional contracts signed with major US companies as a strategic IT services giant in Q1 2022 (see press release here) and Insight Enterprises in Q2 2022.

This faster-than-expected commercial success confirms three important observations:

The 1-Order-to-Cash market is extremely vibrant worldwide, especially in the United States. The market is worth an estimated $ 10 billion worldwide and is developing rapidly with less than 10% of the companies delivered. This is exacerbated by the inflationary environment, the rising costs of cash and recruitment difficulties. Order-to-Cash solutionswhich aims to accelerate cash flow by reducing payment delays and generating productivity gains for back office activities, is becoming a top priority for finance departments.

2 / Sidetrade’s technological lead in artificial intelligence has proven its value against the two main US competitors. The efficiency of Sidetrade’s algorithms is based on Sidetrade Data Lake – never before seen in the market – which collects more than 4.6 trillion dollars in B2B transactions with an analysis of 640 million payment experiences from 21 million buying companies worldwide (see press release here). As a result, Sidetrade provides customers with predictive payment models and debt collection strategies tailored to the end customer. In early April 2022, Sidetrade was recognized as one of three global leaders in the Gartner® Magic Quadrant ™ for integrated invoice-to-cash applicationssignificantly expanded the group’s reach among key US customers and strengthened its presence in several tenders.

3 / Sidetrade stays on the offensive with its strategy to quickly become a key player in Order-to-Cash solutions across North America. In less than a year, Sidetrade has built up an experienced sales team (16 people to date), focusing on recruiting Order-to-Cash professionals. The US team is increasing and will double its capacity over the next 12 months. To support this momentum, Sidetrade has implemented an ambitious strategy for recruitment and resources by choosing to:

• register two U.S. recruiters who focus exclusively on hiring sales profiles for this region;
• move the company’s marketing department to the United States;
• create a US exploration team in Canada (Calgary) from the beginning of the second half of 2022, which will eventually include around 15 operators.

This offensive strategy is already yielding results that will be strengthened in the coming months.

Overall, in H1 2022, orders from new customers (“New business”) Benefited from the success in the United States and stood for 68% of the total against 55% on average in recent quarters.
Cross-selling represents 13% of total new orderswith the remaining 19% of orders reckons with Additional sales of additional modules to existing customers.

The United States has also been particularly influential average size of new contracts (excluding additional sales). In H1 2021, the average was € 81,000 per subscription year (ARR) and will amount to € 190,000 per subscription year in the second half of 2022.

Strong increase in Order-to-Cash SaaS revenue to +19% and double-digit revenue growth to +11%

2022 information is from consolidated, unaudited data.

“Order-to-Cash” The activities grew very strongly to +17% in H1 2022, driven by 19% growth in SaaS subscriptions. The growth in these recurring revenues is a result of record bookings in the financial year 2021, which will continue to affect revenue growth throughout the financial year 2022.

‘Order-for-cash’ activitiesa core business within the company’s strategy since 2019, now represent 97% of total turnover.

In addition, ‘Sales & Marketing’ activities have become secondary to Sidetrade’s activities. They now only stand for 3% of total turnover in this semester and will continue to play a less prominent role commercially, with an estimated income of € 0.9 million at the end of 2022.

Total income grew by 11% in H1 2022, to € 17.8 million. This performance is supported by solid growth drivers in international markets that now represent 51% of total revenues, including 21% for North America.

Inflation generates solid pricing power for Order-to-Cash solutions

Businesses must be prepared to respond to the inflation environment
Businesses face a two-pronged challenge: consolidating their cash reserves in an inflationary environment and generating productivity gains to meet wage increases and recruitment difficulties. This trend is expected to continue over the next 12 to 24 months with an increased risk of future recession, especially related to more interest rate increases. In this context, managing working capital, and especially accounts receivable, is a major challenge for companies.

Sidetrade’s model meets the challenges in the global market
The return on investment for Sidetrade customers is directly proportional to the cost of cash made available by the Augmented Cash platform and the expected productivity gains.

Sidetrade’s financial model gives the business significant resilience, as 90% of revenues are recurring, which represents a significant advantage in the current and future environment. All these multi-year contracts are indexed to inflation (Syntec for Southern Europe, UK CPI for Northern Europe and US CPI for the US), which changes the total price of SaaS subscriptions each year with reference to changes in these price indices.

Sidetrade therefore has a robust pricing power that protects the company’s future income against uncertainty and inflationary pressures. Currently, Sidetrade combines its solid fundamentals perfectly with very favorable growth prospects.

Based on the results in H1 2022, the group’s management is confident in Sidetrade’s ability to deliver double-digit growth in the financial year 2022.

Next financial announcement
Result for the first half of 2022: 20 September 2022, after the stock exchange closes

Investor relations
Christelle Dhrif +33 6 10 46 72 00 [email protected]

Media relations
Rebecca Parlby +44 7824 505 584 [email protected]

About Sidetrade (www.sidetrade.com)
Sidetrade (Euronext Growth: ALBFR.PA) provides a SaaS platform dedicated to securing and accelerating cash flow. Sidetrade’s next generation AI, nicknamed Aimie, analyzes B2B million dollar B2B payment transactions daily in Sidetrade Cloud to predict customer payment behavior and fatigue risk for more than 21 million companies worldwide. Aimie recommends the best cash-raising strategies, intelligently automates actions on the Order-to-Cash process, and dematerializes customer transactions to improve productivity, performance, and working capital management.
Sidetrade has a global reach, with 250 talented employees based in Paris, London, Birmingham, Dublin, Houston and Calgary, and serves global businesses in more than 85 countries. Among them: Tech Data, KPMG, Nespresso, Hearst, Expedia, Manpower, Securitas, Randstad, Engie, Veolia, Vinci, Saint Gobain, Air Liquide, Inmarsat, Insight Enterprises and Bidfood.
For more information, visit us at www.sidetrade.com and follow us on Twitter @Sidetrade.

In the event of any inconsistency between the French and English versions of this press release, only the French version shall be taken into consideration.

• Sidetrade: Strong increase in Order-to-Cash SaaS revenue to +19%