|H1 2023 REVENUE: €8.4m (up 3%) |
MODEST FIRST-HALF GROWTH
WITHIN AN UNCERTAIN ENVIRONMENT
_ STREAMWIDE (FR0010528059 – ALSTW – eligible for the French PEA-PME), the expert in mission critical and business critical communications software solutions, posted revenue of €8.4 million for the first half of 2023, up 3% despite ongoing economic uncertainty.
Despite the increasing importance of licence base effects (significant order volumes in 2021 and 2022 for the PCSTORM project), recurring revenue from maintenance and services increased in the first half of 2023, enabling continued growth in the Group's revenue.
H1 2023 revenue breaks down as follows:
|in €000||H1 2023||% rev.||H1 2022||% rev.||Ch.||Ch. (%)|
(*) H1 2023 revenue is currently being audited.
_ GROWTH IN “PLATFORM” REVENUE AND CONTINUATION OF STRUCTURAL PROJECTS
The new team on mission and team on the run critical business and communications platforms, for which revenue rose by 4% to €5.6 million in the first half of 2023, still represent the Group's main revenue source (66%) and will be major growth drivers over the coming years.
As previously announced, the mass roll-out of the PCSTORM project is currently underway, with the forthcoming deployment of the largest MCPTT platform in the world in terms of simultaneous end users.
The type of revenue related to the project will therefore change as the project progresses, moving from licence revenue (€2.4 million in 2021 and €3 million in 2022) to revenue from maintenance and services (new operational condition maintenance contract from mid-2022). The changes in licence revenue (down €0.4 million) and maintenance revenue (up €0.3 million) recorded at 30 June 2023 are therefore mainly due to this change to the PCSTORM contract. The growth in recurring revenue from maintenance will be confirmed in the coming months.
Regarding the breakdown of the €5.6 million in revenue from the “platforms” business at 30 June 2023, revenue from licences (€2.9 million) fell by €0.6 million, following the base effects referred to above, while recurring revenue from maintenance (€0.7 million) and services (€2 million) increased by €0.4 million each. Business therefore grew by €0. 2 million in the first half of 2023, with new projects being rolled out, particularly in France, in the transport and energy sectors.
The legacy telecom operator solutions business grew slightly by 2% in H1 2023 (up €0.1 million) and accounted for 34% of first-half revenue (€2.8 million). Licence sales, which are intrinsically non-recurring, rose in the first half of 2023 (up €0.3 million) to €1 million at 30 June 2023, mainly as a result of one new project in the United States and two platforms upgrade projects for French operators. Legacy maintenance flows fell slightly (by €0.1 million) following the discontinuation of increased support for one French customer, to €1.7 million at 30 June 2023. Legacy services (€0.1 million) remained insignificant in the first half of 2023 (€0.2 million).
_ OUTLOOK: PROVEN TECHNOLOGY AND DIVERSIFICATION OF REVENUE SOURCES
As announced in the 2022 earnings release published in March, the level of 2023 revenue currently anticipated is satisfactory, but remains closely correlated with the final calendar of official notices and the operational deployment of French and European ministerial projects.
In the short term, the Group is still awaiting official notice regarding the Italian project, which the Group won several months ago. The impact on revenue could be more or less significant from the second half of the year, depending on the date and value of the first order issued and received. Other projects could also come to fruition in the second half of 2023, notably in France (“platforms” business, team on the run and legacy), but also in Europe (“platforms” business, team on mission) and the United States (legacy).
Over the medium term, public safety projects and projects for the armed forces, and the widespread adoption of new-generation communications solutions are expected to accelerate.
The Group's direct or indirect involvement in virtually all ongoing critical communications projects (in Southern Europe, Central Europe, the UK and the Middle East) underlines the quality and technological edge offered by its solution (team on mission). The platform technology developed by the Group has become a must for most major players in the sector. The Group has the human and financial resources to maintain and further increase the technological lead of its solutions and to support changes in the MCx market in order to capitalise on its certain future growth.
With regard to the team on the run solution, the Group's continuous developments in recent years, which have been integrated into secure and scalable sovereign technical architectures, offer distinct advantages over current rival solutions. The new modules added recently (Field Service Management - FSM - and Geofencing, i.e. virtual physical barriers and the associated alert system) further enhance an already functionally rich solution. Over the coming months, the Group should be able to respond effectively to the needs of major players, enabling them to free themselves from current technical and organisational constraints. These various projects, based on specific but strategic use cases, could represent a significant new source of revenue for the Group.
First-half trends are therefore expected to continue during the second half. Major projects are set to be approved in the coming months in all Group business lines (platforms and legacy). While variables such as time and the speed at which new communications and mission-critical technologies are adopted and become widespread remain unknown factors, the Group remains confident in the technological lead demonstrated by its various solutions, and in its ability to maintain the profitable growth momentum it has demonstrated and sustained over several years.
Next financial release: H1 2023 earnings, Monday 18 September 2023
About STREAMWIDE (Euronext Growth: ALSTW)
A major player for 20 years in the critical communications market, STREAMWIDE has successfully developed its Team on mission (mission critical) and Team on the run (business critical) software solutions for administrations and businesses. These solutions for smartphones and PCs, offered in a SaaS model or on Premise, benefit from numerous functionalities such as the multimedia group discussions, VoIP, push-to-talk (MCPTT and MCx new generation 4G / 5G LTE), geolocation, digitization and automation of business processes. These innovative solutions meet the growing needs for digital transformation and real-time coordination of interventions. They allow field teams to transform individual contributions into collective successes and to act as one in the most demanding professional environments.
STREAMWIDE is also present on the Value-Added Services software market for telecom operators (visual voice messaging, billing and charging of calls in real time, interactive voice servers, applications and announcements) with more than 130 million end users all over the world.
Based in France and present in Europe, USA, Asia and Africa, STREAMWIDE is listed on Euronext Growth (Paris) – ALSTW FR0010528059.