FD Technologies Sees 11% Rise in Revenue in FY22

Fazzaco learned that FD Technologies (AIM: FDP.L, Euronext Growth: FDP.I), a leading technology provider of the financial industry, today announced its results for the year ended 28 February 2022, showing a jump in its revenue.

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Financial Highlights in FY 2022：

• Revenue up 11% to £263.5m (up 14% on a constant currency basis), driven by good growth at First Derivative and MRP balanced by a reduction in KX perpetual license revenue in line with strategy

• KX exit Annual Recurring Revenue of £47.0m, up 25% in line with target with recurring revenue representing 61% of revenue (2021: 51%) as the company focus on high-value subscription revenue growth

• First Derivative revenue £148.0m, up 24%, driven by market demand and strategy of generating value from its expertise and investment in leadership and go-to-market capability

• MRP revenue up 16% to £51.1m, with platform revenue growth of 18% on a constant currency basis, as the company focused the launch of Prelytix 3.0 on existing customers

• Adjusted EBITDA £31.0m, within its guidance range following the investment in R&D, go-to-market and operations in line with its accelerated growth strategy

• Net cash £0.3m (2021: net debt £9.9m) excluding lease liabilities, better than market consensus driven by continued focus on working capital.

Looking to the future, FD Technologies, entering a new financial year with decent momentum, continues to focus on growth. The group anticipates an acceleration in the key metric of ARR in KX, targeting a jump of 35-40%. First Derivative and MRP are expected to keep doubledigit revenue growth and an improvement in margin. According to the Group's FY23 guidance, revenue is targeted to grow in the range £290m to £300m and adjusted EBITDA in the range £36.5m to £38.5m.

At the beginning of this year, FD Technologies has appointed Usama Fayyad as Non-Executive Director to support its strategy to extend KX's market-leading position for in-the-moment decision making and the continued focus on growth in First Derivative and MRP. Also, the company has entered into a strategic partnership agreement with Microsoft to expand the reach of its KX Insights streaming data analytics platform. These moves would contribute to the group's further growth in FY23.

"We have delivered a year of transformation across the Group, with each business unit achieving the Key Performance Indicators we set out in our strategy one year ago to accelerate our growth. KX, which was the principal focus of our investment in the year, delivered our target ARR growth, and enters the new financial year with increased momentum from our partnership with Microsoft enabled by the launch of our cloud native KX Insights platform," said Seamus Keating, CEO of FD Technologies.

 "First Derivative recorded strong growth as it built on its reputation for domain knowledge and delivery excellence, while MRP continued to grow strongly from its leadership position in predictive lead generation. Across the Group, our investment in systems and people positions us to scale our operations to meet our growth ambitions. The opportunities across the markets in which we operate are significant and through continued execution of our strategy I am confident we can unlock value for our customers and accelerate our growth in the years ahead," Seamus adds.