DJ BROADPEAK SA: Publication by Broadpeak of its third-quarter 2023 revenue
BROADPEAK SA BROADPEAK SA: Publication by Broadpeak of its third-quarter 2023 revenue 14-Nov-2023 / 17:45 CET/CEST Dissemination of a French Regulatory News, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. =---------------------------------------------------------------------------------------------------------------------- Publication by Broadpeak of its third-quarter 2023 revenue - Nine-month sales of EUR25.95 million, up 0.9% (+2% at CER[1]) - Strong growth over the period in recurring revenues (+46.7%), which now account for more than one third of turnover - A 3rd quarter marked by order lags in a more difficult economic environment - Expected return to growth in the fourth quarter Cesson-Sévigné (France), 14 November 2023 Broadpeak (ISIN: FR001400AJZ7 - Ticker: ALBPK), a leading provider of video streaming software solutions, is reporting its third-quarter and nine-month 2023 revenue. Revenue (in EURK) 9M 2022 9M 2023 Change Q3 2022 Q3 2023 Change Americas 12,349 11,222 -9.1% 4,579 3,739 -18.3% EMEA 11,101 11,055 -0.4% 3,981 3,678 -7.6% APAC 2,280 3,673 +61.1% 1,119 473 -57.7% TOTAL 25,729 25,950 +0.9% 9,679 7,890 -18.5%
At 30 September 2023, the Group's revenue totalled EUR25.95 million (EURm), versus EUR25.7 million during the first nine months of reporting year 2022, an 0.9% increase. This increase, entirely through internal growth, includes a negative currency effect of EUR0.3 million. At constant exchange rates1, business growth reached 2% over the period.
This performance was achieved despite a decrease in sales during the third quarter (-18.5%), to EUR7.9 million, a change linked to a particularly demanding basis of comparison given the strong growth recorded in the third quarter of 2022 (+21%). The macroeconomic context also weighed on the pace of commercial transformation of orders currently being negotiated. Discussions are nevertheless continuing positively on several significant orders, with signatures expected from the fourth quarter onwards.
This change in order intake resulted, at the product mix level, in a slowdown in growth in the Licences & Services business, which nevertheless remained up by 2.1% over the first nine months of the year, at EUR12.6 million (i.e. 48.4% of total revenue). Equipment sales, which contribute little to the gross margin, continued their downward trend, totalling 16% of turnover over the period (compared with 27.7% a year earlier).
Recurring revenue: increase of more than 70% in the third quarter
At the same time, the ramp-up of recurring revenues (Maintenance & SaaS) is accelerating: up 46.7% over the first nine months of the financial year, to EUR9.2 million, they account for 36.6% of the Group's turnover. In the third quarter of 2023 alone, Maintenance & SaaS revenues increased by 72%. Reflecting both the sales of dynamic services to the established customer base and the success of the SaaS offering, this development is perfectly in line with the roadmap presented at the IPO. By 2026, the Group expects a doubling of the share of recurring revenue to 40% of revenue (compared with 20% in 2021).
By geographic region, APAC (Asia-Pacific) posted nine-month sales of EUR3.7 million, up 61.1%, now accounting for 14% of Broadpeak's total sales. Developments in the Americas (-9.1%) and in EMEA (-0.4%) suffered from a demanding basis of comparison compared with the first nine months of 2022, marked by growth of 26% and 35% respectively in both zones.
Confirmed financial targets by 2026
Given the discussions currently being held on several important orders, Broadpeak expects growth to return over the last three months of the current financial year. As the fourth quarter is traditionally the most contributory in terms of turnover (38.6% of sales in 2022), the Group expects to post single-digit growth over the whole of the 2023 financial year.
At the end of September, the Group had 326 employees, compared with 330 at June 30, 2023. This reflects the Group's policy of stabilizing its workforce, with the bulk of resources in place to achieve its 2026 targets. As a reminder, Broadpeak is targeting sales of EUR100 million by this date, with an Ebitda margin of 20% (compared with 9% in 2021).
Upcoming events:
-- 2023 full-year revenue: 13 February 2024, after market close
-- 2023 full year results: 16 April 2024, after market close
CONTACTS
BROADPEAK FINANCIAL COMMUNICATION FINANCIAL / CORPORATE PRESS Investors@broadpeak.tv broadpeak@actifin.fr michael.scholze@actifin.fr + 33(0)2 22 74 03 50 + 33(0)1 56 88 11 25 + 33(0)1 56 88 11 14
Broadpeak, S.A. - Zone des champs blancs, 15 rue Claude Chappe, 35 510 Cesson-Sévigné, France
VAT Number FR49 524 473 063 - SIREN 524 473 063 00054
avec un capital social de 250. 833,72 euros
Tel: +33 (0)2 22 74 03 50
www.broadpeak.tv
Disclaimer
This press release contains statements that are not historical facts, including, but not limited to, statements regarding future results and other future events. These statements are based on the current vision and assumptions of Broadpeak's management. They involve known and unknown risks and uncertainties that could cause actual results, profitability or events to differ materially from those anticipated. In addition, Broadpeak, its shareholders and its respective affiliates, directors, officers, boards and employees have not verified the accuracy of, and make no representations or warranties regarding, any statistical information or forward-looking information contained in this release that originates or is derived from third-party sources or industry publications. Such statistical data and forward-looking information are used in this press release for information purposes only.
About Broadpeak
Since its creation, Broadpeak has grown with a sole purpose in mind: to roll out software solutions worldwide streaming content that people love with a compelling quality of experience. These solutions target the world's leading players, including large TV and telecom operators and global broadcasting platforms (OTTs), as well as new media in the corporate, sports and entertainment segments. At the end of 2022, Broadpeak had 150 customers across 50 countries, representing 200 million spectators worldwide These include leading players such as Bouygues Telecom, Orange, Telecom Italia, Deutsche Telekom, HBO, Mola TV, StarHub TV+ and Megacableò. Broadpeak has more than 320 employees in 23 countries. The company is mainly based in France (head office in Cesson Sévigné near Rennes) but is also present in the United States (Denver), Canada (Ottawa), Brazil (Sao Paulo), Singapore and Dubai. Broadpeak generates approximately 90% of its revenue internationally. Since 2015, Broadpeak has posted average annual growth of more than 30%. For 2026, the objective is to reach EUR100 million in sales, i.e. a more than threefold increase in activity compared to 2021, with an EBITDA margin of 20%.
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[1] At the average exchange rate recorded on sales for the first nine months of fiscal 2022
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Regulatory filing PDF file File: Publication by Broadpeak of its third-quarter 2023 revenue
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Language: English
Company: BROADPEAK SA
15 rue Claude Chappe
35510 CESSON SEVIGNE
France
Phone: 02 22 74 03 50
Internet: https://broadpeak.tv/
ISIN: FR001400AJZ7
Euronext Ticker: ALBPK
AMF Category: Inside information / News release on accounts, results
EQS News ID: 1773355
End of Announcement EQS News Service
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1773355 14-Nov-2023 CET/CEST
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(END) Dow Jones Newswires
November 14, 2023 11:45 ET (16:45 GMT)
