LONDON–(BUSINESS WIRE)– Regulatory News:
MotorK plc (AMS: MTRK) (“MotorK”, the “Group” or the “Company”), a leading SaaS provider to the automotive retail industry in the EMEA region, today announced its financial results for the nine months ended September 30, 2024, reflecting continued enterprise momentum, recurring billings growth, and significant improvements in operational efficiency.
KEY FINANCIAL HIGHLIGHTS:
- Committed Annual Recurring Revenue (CARR 1 ) grew by 11% year-over-year, reaching €39.1 million in the first nine months of 2024, demonstrating MotorK’s increasing ability to secure long-term SaaS subscriptions. This underscores the ongoing trust and reliance our clients place in MotorK’s innovative solutions.
- Recurring Billings increased by 17% compared to September 2023. This positive trend reflects our robust retention strategies and increased demand across the EMEA region.
- Adjusted EBITDA 2 saw a significant turnaround, improving from a loss of €2.2 million in the first nine months of 2023 to a positive €1.8 million in the same period in 2024. This was achieved through targeted cost optimization initiatives, operational efficiencies, and strategic reductions in fixed costs, leading to a €4 million savings year-over-year.
- Reported Revenue 3 amounted to €31.3 million, in line with the first nine months of FY2023. Despite billings growth, reported revenue is stable mainly due to the fact that top line statutory performance depends on date of renewals and of the go-live of Enterprise deals rather than month over month billings growth.
- Cash position was strengthened by securing an additional €5 million tranche from Atempo Growth, on the same terms as previous facilities. This injection will support the acceleration of MotorK’s strategic growth initiatives in the coming quarters.
OUTLOOK
MotorK’s pipeline has reached a healthy €23 million. This strong pipeline not only provides clear visibility into future revenue opportunities but also reinforces MotorK’s position as a market leader. Notably, the pipeline includes a record number of deals with potential Annual Contract Values (ACV) exceeding €1 million, a milestone that highlights the increasing scale of our enterprise engagements.
The Company’s successful shift toward larger enterprise deals signals a positive transformation in its business model, though it also means that sales cycles are naturally longer. While timing delays in closing some of these key deals have impacted the timeline for achieving positive Cash EBITDA, MotorK is on track to reach break-even and expects to achieve positive Cash EBITDA next year.
Management remains confident in the Group’s ability to secure these major enterprise deals, although the extended sales cycles introduce some uncertainty regarding year-end results. As such, we are revising our Committed Annual Recurring Revenue (CARR) target to a range of €45-50 million, contingent on the successful closing of these contracts.
Despite these dynamics, MotorK is well-positioned to capitalize on its robust pipeline and continue driving its growth trajectory, with clear momentum building for sustained success in the years ahead.
| 9M 2024 REVENUES BY PRODUCT AND SERVICES LINE |
|
|
|
| In k€ |
Sep-24 |
Sep-23 |
y-o-y change |
| SaaS platform revenue |
23,569 |
23,204 |
2% |
| Digital marketing revenue |
6,601 |
5,576 |
18% |
| Other revenue |
1,147 |
2,358 |
(51%) |
| Total revenue |
31,317 |
31,138 |
1% |
|
|
|
|
|
| 9M 2024 SAAS PLATFORM REVENUES |
|
|
|
| In k€ |
Sep-24 |
Sep-23 |
y-o-y change |
| SaaS Recurring revenue |
23,485 |
23,067 |
2% |
| Contract start-up revenue |
84 |
137 |
(39%) |
| SaaS platform revenue |
23,569 |
23,204 |
2% |
| SaaS platform revenue as % of total revenue |
75% |
75% |
1% |
|
|
|
|
|
| Recurring billings |
25,608 |
21,868 |
17% |
|
|
|
|
|
| 9M 2024 REVENUES BY GEOGRAPHY* |
|
|
|
| In k€ |
Sep-24 |
Sep-23 |
y-o-y change |
| Italy |
19,823 |
19,160 |
3% |
| Spain |
2,607 |
3,910 |
(33%) |
| France |
5,003 |
3,686 |
36% |
| Germany |
1,769 |
2,464 |
(28%) |
| Benelux |
2,115 |
1,918 |
10% |
| Total revenue |
31,317 |
31,138 |
1% |
|
|
|
|
|
|
* It represents revenues broken down by the countries in which the legal entities are established, independently of the geographical location of the customers. |
|||
NEXT PUBLICATION: FY 2024 TRADING UPDATE
MotorK will post its financial publication schedule on the Company website by year end.
1 Committed ARR (“CARR”) includes ARR and Committed Recurring Revenues (“CRR”). CRR refers to signed contracts to be delivered and billed. Annual Recurring Revenues (“ARR”) is defined as the yearly subscription value of the customer base at the end of the reporting period.
2 This represents the operating profit that the Group is able to generate excluding exceptional components. It measures the ability of the Group to focus on recurring components excluding expenses that are not strictly inherent to the underlying business performance.
3 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
