24th Oct 2022 11:44
(Alliance News) - D4t4 Solutions PLC on Monday said it expects to swing to a loss in its interim results, as the company invests in sales and marketing to secure future revenue visibility.
In a trading update issued ahead of its half-year results, the Middlesex, England-based data management firm said it expects to report an adjusted pretax loss of around GBP1.3 million, swung from a GBP100,000 profit last year. This reflects continued second half weighting as well as ongoing investment into the business.
D4t4 anticipates announcing revenue of around GBP8.1 million for the six months that ended September 30, up 8.0% from GBP7.5 million in the same period last year.
Annual recurring revenue increased by 13% during the period to GBP15.8 million from GBP14.0 million at March 31.
D4t4 has continued to invest into its sales and marketing efforts, including development of a direct sales channel which is showing "clear signs" of being able to shorten sales cycles, building upon a strong pipeline. It now has an "increasing number of sales opportunities", providing good revenue visibility and underpinning the company's confidence of delivering results in line with expectations.
Chief Executive Officer Bill Bruno said: "Our business continues to be second half weighted as expected, but with good revenue visibility to meet management expectations for the full year. Our continued investment in sales and marketing has created a strong direct pipeline of opportunities, which are showing promising signs of shortening the sales cycle in our business that has been historically longer."
Shares in D4t4 Solutions were trading 4.4% lower at 240.00 pence each in London on Monday morning.
By Chris Dorrell; [email protected]
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