Positive Start of the Year in Q1 2024
Continued Growth Trajectory
Maintaining Healthy Operational KPIs
On Track Toward Full Year Guidance
* * *
€1.7 Million Reserved Capital Increase
* * *
Helen Protopapas Appointed as New Non-Executive Director in Replacement of Mauro Pretolani
LONDON–(BUSINESS WIRE)– Regulatory News:
MotorK plc (AMS: MTRK) (“MotorK” or the “Group”) today published a trading update in respect of its financial results for the first quarter of the year, ended March 31, 2024 (“Q1 24”). The Group has delivered another positive start of year, reflecting its track record of consistent growth. The current level of Committed Recurring Revenues confirms a positive tone for the Company’s growth in FY 2024.
Q1 24 FINANCIAL HIGHLIGHTS
- Annual Recurring Revenue (ARR) 1 reached €35.1 million, compared to €27.9 million in Q1 23, up 26% year-over-year, confirming the Group’s high pace of growth.
- Committed Annual Recurring Revenue (CARR) 2 increased to €39.1 million in Q1 24, up 16% compared to Q1 23, including enterprise deals, backlog and contractual price increases, providing significant visibility for the Group’s revenue growth in FY 2024.
- Strong operational KPIs, including a low churn rate of 6.3% and Net Revenue Retention (“NRR”)3 of 111.1%, confirming the Group’s superior efficiency in cross-selling and upselling to its customer base.
- Average annual contract value (ACV) 4 reached €19.7k in Q1 24, up 10% year-over-year (“YoY”), reflecting continued growth in multi-product adoption within customers’ base, fueled by continuous innovation in the offer.
- Reported Revenues 5 recorded €11.2 million, stable year-over-year, reflecting a higher proportion of non-immediate-delivery contracts booked in the quarter, that will contribute to the next quarters’ revenues.
- Recurring billings amounted to €8.5 million, up 30% from the prior year, and representing 76% of total revenues, demonstrating continued improvement in the revenue mix.
With a €20 million pipeline in Retail and Enterprise segments, MotorK benefits from significant revenue visibility for the year. The current combined level of recognized and committed Annual Recurring
Revenues provides a positive outlook for the Group’s recurring revenue growth in FY 2024, confirmed in the trajectory to meet the FY guidance of CARR to reach €50 million.
In tandem with the continued growth of the top-line, the Group is improving its operating leverage, given the mostly fixed nature of its cost base, in line with its communicated objective of achieving Cash EBITDA positivity on a full year basis by FY 24.
Marco Marlia, Co-founder & CEO of MotorK said: “In Q1 we delivered another quarter of growth. The year-over-year increase of the ARR confirms our strategy and execution in recent periods. We will work diligently in the next quarters to deliver additional growth and continued discipline on costs, to meet our targets for the full year.”
| Q1 2024 REVENUES BY PRODUCT AND SERVICES LINE | |||
| In k€ |
Q1 2024 |
Q1 2023 |
y-o-y change |
| SaaS platform revenue |
8,515 |
8,741 |
(3%) |
| Digital marketing revenue |
2,364 |
1,787 |
32% |
| Other revenue |
374 |
906 |
(59%) |
| Total revenue |
11,253 |
11,434 |
(2%) |
|
|
|
|
|
| Q1 2024 SAAS PLATFORM REVENUES |
|
|
|
| In k€ |
Q1 2024 |
Q1 2023 |
y-o-y change |
| SaaS Recurring revenue |
8,438 |
8,633 |
(2%) |
| Contract start-up revenue |
77 |
108 |
(29%) |
| SaaS platform revenue |
8,515 |
8,741 |
(3%) |
| SaaS platform revenue as % of total revenue |
76% |
76% |
(1%) |
|
|
|
|
|
| Q1 2024 REVENUES BY GEOGRAPHY* |
|
|
|
| In k€ |
Q1 2024 |
Q1 2023 |
y-o-y change |
| Italy |
6,977 |
6,254 |
12% |
| Spain |
1,182 |
1,272 |
(7%) |
| France |
1,633 |
1,640 |
(0%) |
| Germany |
719 |
1,526 |
(53%) |
| Benelux |
742 |
742 |
0% |
| Total revenue |
11,253 |
11,434 |
(2%) |
| * It represents revenues broken down by the countries in which the legal entities are established, independently of the geographical location of the customers. | |||
€1.7 MILLION RESERVED CAPITAL INCREASE
Along with the Q1 24 results, MotorK announces the successful implementation of a reserved capital increase totaling approximately €1.7 million, in continuation with the strategy to strengthen its financial position and to welcome new investors, supporting its commitment to the growth strategy and path to profitability.
The reserved capital increase, based on a reference price per share of €4.00, results in the issue of 425,000 new ordinary shares. In addition, these newly-issued shares will be subject to a 6-month lock-up period, underlining the investors’ long-term vision and dedication to the Group’s success.
NEW DIRECTOR APPOINTMENT
MotorK Board of Directors announced today the appointment of Ms. Helen Protopapas as Non-Executive Director of the Company, after Mauro Pretolani’s resignation.
Ms. Protopapas, 56, English, has a proven international background and skills as “Commercial CFO», together with a successful track record in areas such as private equity and venture capital in internet technologies, M&A and fundraising, as well as cash flow management.
Furthermore, the new Director has been selected in accordance with the “Board Profile“ and the “Diversity Policy” adopted by the Company. She also meets the independence requirements.
Amir Rosentuler, Executive Chairman of MotorK said: “Mauro Pretolani has been precious in supporting the Company since its early stage and accompanying us to this level of maturity. We are grateful for his contribution and wish him the best for his future professional endeavors.
With Helen Protopapas, we welcome into the Board an accomplished finance professional, who will further strengthen our compliance and governance profile. Also, her appointment improves the Board’s gender balance.”
The appointment will be submitted to the next AGM on May 30 for confirmation.
NEXT PUBLICATION: HY 2024 RESULTS, 25 JULY 2024
_______________________________________
1 Annual Recurring Revenues (“ARR”) is defined as the yearly subscription value of the customer base at the end of the reporting period
2 Committed ARR (“CARR”) includes ARR and Committed Recurring Revenues (“CRR”). CRR refers to signed contracts to be delivered and billed
3 Net Retention Revenues (“NRR”) is defined as the percentage of Recurring Revenues retained from existing customers
4 Core Retail base, excluding recently acquired companies (Dapda, FranceProNet and Fidcar) currently under migration
5 Under IFRS 15, revenue from the applicable subscription agreement is recognized for the entire value of the contract, regardless of its duration, at the time of its delivery; conversely, ARR shows revenue as if it were received on a straight-line basis over the life of the contract
