FD Technologies Ends FY23 with 12% Revenue Jump

by Arnab Shome
  • KX and First Derivative revenues beat market expectations.
  • The group ended up with a pre-tax loss of £1.2 million.
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FD Technologies, previously known as First Derivatives, reported a 12 percent annual revenue jump to £296 million in the last financial year, which ended on 28 February. However, the company turned a pre-tax loss of £1.2 million compared to a £9 million profit in the previous year.

Substantial Revenue but Increased Expenses

Though the company had a gross profit of £122.3 million, increased research and development expenditures, sales and marketing costs, and administrative expenses pushed it toward a loss. It reported a 14.4 pence of loss per share from 22.9 pence in earnings per share.

The adjusted EBITDA of FD Technologies came in at £34.8 million, improving 12 percent year-over-year. Additionally, the adjusted diluted EPS jumped 9 percent to 35.3 pence.

Meanwhile, KX and First Derivative, the company's flagship divisions, witnessed excellent performance growth. The revenue of KX grew 25 percent to £80.2 million, 72 percent of which came from recurring costumes. The First Derivative unit generated £174.3 million, which is up 18 percent.

The revenue of both KX and First Derivative exceeded market expectations. However, the MRP revenue came down 19 percent to £41.5 million, driven by lower spending on demand generation by enterprise customers.

“We are pleased with a year of strong execution on our strategy, with KX and First Derivative beating our expectations for FY23,” said Seamus Keating, the CEO of FD Technologies.

Bullish Outlook

FD Technologies is now bullish about its performance for the ongoing financial year. At the group level, it is expected annual revenue in the range of £315 million to £325 million, with adjusted EBITDA between £38 million to £40 million.

“We have set ourselves ambitious but sustainable growth targets for the years ahead, which will ensure we are focused on driving high-quality recurring revenue growth from an expanding list of customers across a wide range of industries, while generating value for shareholders,” Keating added.

FD Technologies, previously known as First Derivatives, reported a 12 percent annual revenue jump to £296 million in the last financial year, which ended on 28 February. However, the company turned a pre-tax loss of £1.2 million compared to a £9 million profit in the previous year.

Substantial Revenue but Increased Expenses

Though the company had a gross profit of £122.3 million, increased research and development expenditures, sales and marketing costs, and administrative expenses pushed it toward a loss. It reported a 14.4 pence of loss per share from 22.9 pence in earnings per share.

The adjusted EBITDA of FD Technologies came in at £34.8 million, improving 12 percent year-over-year. Additionally, the adjusted diluted EPS jumped 9 percent to 35.3 pence.

Meanwhile, KX and First Derivative, the company's flagship divisions, witnessed excellent performance growth. The revenue of KX grew 25 percent to £80.2 million, 72 percent of which came from recurring costumes. The First Derivative unit generated £174.3 million, which is up 18 percent.

The revenue of both KX and First Derivative exceeded market expectations. However, the MRP revenue came down 19 percent to £41.5 million, driven by lower spending on demand generation by enterprise customers.

“We are pleased with a year of strong execution on our strategy, with KX and First Derivative beating our expectations for FY23,” said Seamus Keating, the CEO of FD Technologies.

Bullish Outlook

FD Technologies is now bullish about its performance for the ongoing financial year. At the group level, it is expected annual revenue in the range of £315 million to £325 million, with adjusted EBITDA between £38 million to £40 million.

“We have set ourselves ambitious but sustainable growth targets for the years ahead, which will ensure we are focused on driving high-quality recurring revenue growth from an expanding list of customers across a wide range of industries, while generating value for shareholders,” Keating added.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6303 Articles
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