Alfa Financial Software Holdings PLC has released a trading update for the first half of 2024, indicating continued momentum in its pipeline and leaving full-year expectations unchanged. The company has maintained a strong operational performance, with a focus on completing the development of new modules for Alfa Systems 6. This includes the release of the "Scalability" installment, designed to provide leading-edge functionality for businesses looking to scale with flexibility and speed.
The company has seen progression in its pipeline, adding two new prospects in the late-stage pipeline in the second quarter. Alfa has expressed confidence in the strength of the pipeline, with plans to increase recruitment targets in EMEA and the US to accommodate the strong pipeline. Total Contract Value (TCV) at the end of Q2 was in line with Q1, showing significant growth compared to the previous year.
The trading in Q2 met expectations, and the company anticipates mid to high single-digit revenue growth for the full year. Subscription revenues have shown strong growth, with high teens growth versus last year, and sequential growth continuing in Q2. However, software revenues were lower due to the focus on investment in Alfa Systems 6 functionality, while services revenues were slightly down, with an anticipated reversal in the second half of the year.
Andrew Denton, Chief Executive Officer of Alfa, expressed satisfaction with the first-half performance and optimism for the second half of the year. He highlighted the release of the final two pillars of Alfa Systems 6 and the encouraging late-stage pipeline as factors that position the company well to achieve its expectations for the year and maintain confidence in the longer-term outlook for the business.
Alfa Financial Software Holdings PLC has been delivering software systems and services to the global asset and automotive finance industry since 1990. Their class-leading technology platform, Alfa Systems, supports both retail and corporate business for auto, equipment, wholesale, and dealer finance on a multijurisdictional basis, providing compelling solutions to asset finance companies.