Neuilly-sur-Seine, 6 February 2023 – Linedata (LIN:FP) reported full-year 2022 revenues of €172.7m, reflecting organic growth of 1.9% compared to 2021. This performance ties in with the dynamism of the Services component of the Asset Management business, and the resilience of the Lending & Leasing business. In reported terms, growth was +7.8% due to a favorable USD exchange rate.
Recurring revenue for the financial year was €133.8m (+€8.7m compared with a year earlier) representing 77% of total revenue. Non-recurring revenue was up €3.8m to €38.9m, benefiting notably from the performance of the Services division.
Bookings picked up in Q4 to reach €19.2m, an increase of €3.9m (+25,6%) over the same period in 2021. For the full year, bookings amounted to €62.0m, versus €59.4m in 2021.
Performance by segment:
ASSET MANAGEMENT (Q1: €27.3m, +5.3%; Q2: €29.4m, +15.1%; Q3: €28.6m, +13.2%; Q4: €32.2m, +3.8%)
Revenue generated by the Asset Management business came in at €117.5m, an annual increase of 9.0% in reported terms, and 1.6% in organic terms. Q4 sales activity confirmed the positive trend of the first nine months of 2022, with an order intake of €11.1m versus €9.4m for the same period last year. Bookings for the Asset Management business thus came in at €37.9m for the full year, versus €31.9m in 2021.
The Software business generated revenue of €90.3m, up +2.1%. The Fund Services component benefited from new customization projects which spurred revenue growth. Concerning Front Office solutions, the AMP migration of major clients continued, its significant impacts expected to be seen starting 2024.
The Services division confirmed its growth trajectory with 2022 Q4 revenue of €7.4m, up 35.8% versus the same period last year. Over the entire year, this increase reached 40.5% (25.2% in organic terms), reflecting the success of the co-sourcing model and the importance of the diversification towards services, initiated 5 years ago.
LENDING & LEASING (Q1: €12.8m, +7.2%; Q2: €13.5m, +7.7%; Q3: €13.3m, +5.7%; Q4: €15.6m,
+1.2%)
Revenue generated by the Lending & Leasing segment amounted to €55.1m in 2022, up 5.2% (+2.5% on a comparable basis), driven by migration projects on the Linedata Ekip360 and Linedata Capital Stream solutions. The order intake picked up in Q4 2022 to reach €8m, an increase of 36% compared with the same period in 2021. For the full year, bookings came in at €24.1m, versus €27.5m in 2021, where the drop is mainly due to a base effect (signing of a multi-year contract with a new client in 2021).
Outlook
With continuing uncertainties affecting the economic outlook, Linedata’s ongoing objective for 2023 is to maintain a level of activity that will enable it to deliver satisfactory profitability indicators based on the quality of its technological solutions and the recurrence of its business model.
Next communication: 2022 full-year results, on 13th February 2023, after market.