Datalex (DLE) H2 2024 earnings summary

Executive summary

• Launched Stellex, a next-generation offer and order management platform, with successful activations for easyJet, Air Macau, Air China, and Edelweiss, and continued migrations to Stellex.

• Introduced DLX Pay, a modular payment platform, with Air Transat as launch customer, and invested in Pricing AI and modular standalone products.

• Raised €25 million in equity, fully repaid all debt facilities, and strengthened the balance sheet.

• Focused on modular product growth, including payments and Pricing AI, to expand beyond core offerings.

• Despite revenue decline, underlying business momentum is strong, especially in platform revenue.

Financial highlights

• Revenue for FY2024 was €27.5 million (US$27.5m), down 5% year-on-year due to loss of contracts with Scandinavian Airlines and Virgin Australia.

• Platform revenue grew 24% year-on-year to €16.1 million (US$16.1m), while services revenue declined 27%.

• Gross profit increased 5% year-on-year to €10.2 million (US$10.2m), with gross margin expanding to 37% from 34%.

• Adjusted EBITDA loss was €3.1 million (US$3.1m), a modest increase year-on-year.

• Loss after tax was €10.2 million (US$10.2m), up 13% year-on-year, mainly due to higher interest and share-based payment costs.

Outlook and guidance

• Entering 2025 with a strong recurring revenue base, platform revenue momentum, and no debt.

• Strategic focus on growing platform and modular product revenues, including DLX Pay and Pricing AI.

• Ambition to return to EBITDA positive in 2025 through gross profit growth and expense management.

• Expectation of a more modest capital raise in 2025 compared to 2024.

• Plans to invest further in Stellex and raise additional capital to support growth and working capital needs.