Datalex plc: Total revenue for 2023 was $28.9 million
DUBLIN, IRELAND – Datalex plc, a market leader in airline e-commerce solutions, provides an update on trading for the period 1 January 2023 to 31 December 2023.
2023 was a turnaround year for the global aviation industry. Datalex benefitted from this recovery and reports positive revenue growth in 2023, as passenger traffic volumes further recover and airlines continue to invest in their e-commerce technology.
Key Highlights
- The Group expects to report the following headline figures for the year ended 31 December 2023 (unaudited):
- Total revenue for 2023 was $28.9 million, a 23% year-on-year increase (2022: $23.5 million).
- Platform revenue increased by 3% to $11.5 million (2022: $11.1 million) and services revenue increased by 47% to $16.4 million (2022: $11.2 million). Services revenue growth is primarily attributable to the increased volume of activation and transformation projects that occurred in 2023. These projects will positively impact platform revenue in future years.
- Total operating costs before exceptional items in 2023 increased by $0.3 million to $35.3 million (2022: $35.0 million).
- Adjusted EBITDA loss of $2.9 million for 2023, which is an improvement of $2.4 million versus 2022 (2022: Adjusted EBITDA loss $5.3 million).
- Loss after tax for the Group for 2023 fell to US$9.1 million compared to a loss after tax in 2022 of US$11.5 million.
- Cash as at 31 December 2023 totalled US$5.8 million (2022: US$6.5 million). A net cash outflow from operations (US$7.1 million) and outflows to fund product development (US$1.4 million) were offset in part by proceeds of borrowings (US$8.6 million), contributing to a decrease in cash of US$0.8 million during the year.
Outlook
The Group entered 2024 with a strong recurring revenue base and has a solid pipeline of growth that will be unlocked as new customers are activated further. During periods of heavy activation, services revenue will be elevated relative to platform revenue. Activations timelines are dependent on customer requirements. As go-live milestones are achieved, higher margin platform revenue is expected to materially drive revenue growth, with expectations that this will be most pronounced commencing in 2025.
Jonathan Rockett, CEO, commented: “The Group achieved a number of positive milestones during 2023 that have set a solid foundation for 2024 and beyond.
A significant step in 2023 was the renewal of our partnerships with Air China, Air Transat, JetBlue, Edelweiss and Aer Lingus. In addition to these renewals with existing customers, the Group entered into new partnerships with LATAM Airlines and Air Macau in 2023. Another highlight was EasyJet going live with our Merchandiser product – being the start of a multi-year activation project.
We have a number of transformation projects continuing in 2024 and 2025 for our new and existing customers. These projects are important steppingstones to unlock value for our customers and for Datalex.
We are currently reviewing our longer-term strategy and how we can maximise long-term value creation for our customers and shareholders. A key focus for the Group is to ensure that we continue to prioritise operational excellence across all areas of our business. Efficiency and productivity will be important to achieve our goal of improving bottom line performance in addition to top line revenue growth. Further updates will be furnished when appropriate”.
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