Sopheon shares dipped 0.7% to 645p in late morning trading on Wednesday, after the firm swung to a $791,000 pre-tax loss in HY1 2022 compared to a HY1 profit of $518,000 the year before.
Sopheon attributed its loss to interest, depreciation and amortization, impairment charges and share-based payment costs at a total of $3.7 million.
The company announced $15.7 million in revenues for HY1 2022 compared to $16.5 million in HY1 2021.
Sopehon reported materially more multi-year SaaS against perpetual licence and service contracts, resulting in deferral in relative revenue recognition. The group mentioned eight new SaaS customers signed.
It noted SaaS ARR of $9.3 million on 30 June 2022 compared to $7.6 million in the previous year.
The firm highlighted an adjusted EBITDA of $2.9 million from $2.8 million year-on-year.
The group confirmed net cash of $23.5 million after funding M&A and dividends, with no debt.
The company said its FY 2022 revenue visibility was currently at $34.1 million against $31.2 million the last year, including revenue to be recognised from its recently announced US Navy agreement closed in July this year.
Sopheon also pointed out the acquisition of UK-based SaaS front-end of innovation management business Solverboard in its HY1 highlights for an initial consideration of $900,000, less than six months after its acquisition of UK-based Saas project management firm ROI Blueprints.
“I am pleased to report revenue visibility already approaching 2021’s full year results with most of H2 still ahead of us. We continue to show good ARR growth especially in SaaS, supported by high levels of retention,” said Sopheon executive chairman Andy Michuda.
“Commercial traction is also building, with both a faster pace of net new sales and the signing of the largest single deal in our history with the US Navy – underpinning future performance. Our strategic initiatives are broadly on track and in a time of continued global uncertainty, our substantial cash reserves provide additional confidence for execution both in terms of organic initiatives, and to move quickly if further acquisition opportunities arise.”
“Recent acquisitions have rounded out our product roadmap, and we are on the cusp of introducing a new go-to-market approach that significantly expands our addressable market and competitive advantage. This is one of the most exciting periods in my time at Sopheon, with both momentum and opportunity in equal measure.”