FADEL Partners, Inc. has released a full-year trading update for the year ended 31 December 2023, indicating that the results are expected to be in line with full-year market expectations, with year-on-year revenues up by 10%. The company has implemented strategic cost initiatives to achieve EBITDA breakeven earlier than previously guided.
The financial highlights for FY23 include revenue in line with market expectations, amounting to $14.5 million, representing a 10% increase from the previous year. Recurring revenue also saw a significant rise, increasing by 31% to $11.4 million. Notable net new software license wins with clients such as PepsiCo, Kimberly-Clark, Sanofi, and Philip Morris contributed to this growth.
FADEL's successful execution against strategic objectives, including investing in technical innovation and expanding sales and demand generation teams, has led to the launch of Brand Vision and enhancements to other products. The company has also expanded its product range in existing blue-chip customers, resulting in more recurring product licenses, upgrades, and subscription support being sold.
The company has hired approximately 40 new employees since its IPO, including a VP of Growth Marketing and a Chief Revenue Officer, who have significantly increased demand-generation activities and bolstered the number of leads and opportunities in the pipeline.
FADEL has maintained a disciplined approach to cost management and expects to report LBITDA of less than $2.0 million. The balance sheet remains healthy, with net cash of approximately $3.0 million at the year-end. The full-year results for the year ended 31 December 2023 are expected to be announced in April 2024.
Tarek Fadel, Chief Executive Officer of FADEL, expressed confidence in the company's position as a leader in the digital content services and intellectual property market. He highlighted the growth in recurring revenues, the opportunity to increase revenues from existing and prospective clients, and the encouraging pipeline, which underpins the revenue growth plans for 2024. Fadel also emphasized the company's prudent management of costs, which should ensure reaching EBITDA breakeven earlier than planned.
This comprehensive update provides insight into FADEL Partners, Inc.'s financial performance, strategic initiatives, and future growth prospects, positioning the company for continued success in the digital content and intellectual property market.