D4t4 revenue falls as company moves focus to recurring software sales

The data solutions provider saw a 12.6 per cent drop in total revenue in the financial year to March 2023

Data solutions provider D4t4 has reported a drop in total revenue of 12.6 per cent to £21.4m as the company continue to move its focus towards software-driven growth.

Software revenue, however, saw an increase of 9.6 per cent to £19.1m and annual recurring revenue was also up by 19 per cent to £16.7m.

"Our transformational journey to becoming a software sales organisation continues to progress, and our focus on growing the core business of selling Celebrus software has developed well with further investments into our strategy for sales and marketing," explained Bill Bruno, CEO of D4t4 Solutions.

He added the financial year for D4t4 ended in a frustrating manner with the delay of two contract signings, but that he is "pleased with the effort from the team globally, and will continue to improve investments and strategy in a data-driven manner.

"We have transformed quickly and efficiently as a business, and that speed will continue alongside the growing pipeline.

"We have started the new financial year well and we are confident in our ability to deliver growth."

In 2022 the company reported an annual recurring revenue increase by 32 per cent to £14m, whilst revenues were up 7.3 per cent to £24.5m.

Despite this, however, the company's share price had dropped throughout the year by 32 per cent.

The year ahead

Bruno said the company's goal is to deliver ARR growth and shareholder value with a focus on sales.

"New logos and growing existing accounts are our core area of focus. We are becoming a far more sales-focused organisation, and that culture will drive the winning attitude needed to sustain the growth we know this business can deliver."

D4t4 is aiming to continue to invest into sales and marketing activities and product development while ensuring it can still generate healthy profits and cash for future investment.

"Everything we do, from delivery to sales to everything in between will be measured. We will continue to bring that data and transparency to the market whenever appropriate."

Bruno said that despite the focus being on growing our the business, D4t4 will also continue to monitor the space for potential acquisition opportunities to bring more capabilities into Celebrus.