First Derivatives Sees Growing Profits, Revenues During Latest Filings

Fintech and software licensing were key contributors to higher revenues, which grew by 17% from 2018

First Derivatives (FD) has announced its preliminary financial results for the full year ending February 28, 2019. During this period, the consulting firm and software provider to trading companies notched an uptick in key financial areas and metrics, namely double-digit rises in profits and revenue.

In particular, FD garnered revenue of £217.4 million ($276.3 million) during the full year ending February 28, 2019. This constitutes an increase of 16.8 percent year-over-year when compared to £186 million ($236.4 million) in the year prior.

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By extension, revenue from First Derivatives’ software license swelled by 28% during the FY ending February 28, 2019. “Customers across a wide range of end-markets are waking to the transformative power of Kx technology to unlock data, drive value and secure their own long-term success,” explained Seamus Keating, Chairman of FD on the latest financials.

The latest filing corroborates a Q4 fiscal report back in November, which also experienced strong growth in license revenue. The group’s Kx technology has been a consistent boon to its client base as well, which is reflective in FD’s growing revenue chain.

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Finally, FD’s fintech revenue was once again a source of optimism, surging by 17 percent in the FY ending February 28, 2019, to £166.7 million ($211.9 million). This trend was driven by an expansion of services provided to clients and new contract wins including the Canadian Securities Administrators, BitMEX and a major Japanese bank.

According to Keating, “Our investment programme has helped to deliver a number of important new contract wins, as well as OEM and partnership agreements that will provide a solid platform for growth in the years to come. As we look ahead, we are excited by the growing pipeline of opportunity across our business and are confident of achieving another year of strong organic growth.”

Profits also pointed higher

Profit margins were also higher in the FY ending February 28, 2019. The latest figures came in at £16.7 million ($21.2 million) after tax, representative of a jump of 17.0 percent from £12.1 million ($15.4 million) in the year prior.

In a previous filing, FD had predicted FY ending February 28, 2019 consensus revenue would come in at £213.0 million with an adjusted EBITDA of £38.5 million. These figures were surpassed by two percent and one percent respectively.

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