Datalex (DLE) H2 2023 earnings summary

Executive summary

• Revenue grew 23% year-over-year to $28.9 million in 2023, marking a return to growth and renewed market leadership in airline technology.

• Gross profit rose 52% to $9.7 million, with gross margin expanding to 34% from 27% in 2022.

• EBITDA loss narrowed by 45% to -$2.9 million, and net loss after tax improved to -$9.0 million.

• Major operational milestones included customer migrations, renewals, and new partnerships with airlines such as Aer Lingus, Edelweiss, Air China, Air Macau, and easyJet.

• Loss of Virgin Australia and SAS as customers resulted in $3.5 million non-recurring revenue in 2023.

Financial highlights

• Revenue increased from $23.5 million in 2022 to $28.9 million in 2023, driven by both services and platform growth.

• Services revenue rose 25% to $14.1 million; platform revenue increased 17% to $12.9 million, driven by higher transaction volumes and Asian market recovery.

• Gross profit reached $9.7 million, with gross margin up to 34%; adjusted for a $1 million one-off, gross margin was 31%.

• EBITDA loss reduced from -$5.3 million to -$2.9 million; loss after tax improved from -$11.5 million to -$9.0 million.

• Cash at year-end was $5.8 million, down from $6.5 million, with borrowings rising to $17.3 million.

Outlook and guidance

• Platform revenue is expected to become the largest revenue share in 2024, supporting further gross margin expansion.

• Ambition to achieve positive EBITDA in 2025 and positive cash flow in 2026.

• $3.5 million of 2023 revenue from terminated customers will not recur in 2024.

• Equity raise planned in 2024 to repay loans and fund growth, with main shareholder and lender support.

• Lender has indicated willingness to extend loan maturity and provide up to $10 million additional funding if needed.