Fadel Partners (FADL) Trading Update summary

Financial performance and trading update

• FY24 revenue reached $13.0M, down 10% from FY23, mainly due to a one-off timing uplift in 2H23; ARR grew 10% to $9.9M, reflecting strong recurring revenue momentum.

• License/subscription and support revenue declined 15% to $9.6M, while services revenue increased 10% to $3.4M.

• Adjusted LBITDA was approximately $3.9M, improved from $1.7M in FY23, driven by cost controls and restructuring.

• Net cash at year-end was $2.4M, exceeding forecasts due to disciplined cash collection and improved commercial terms.

• Twelve new clients were secured in 2024, including notable wins for both IPM Suite and Brand Vision offerings.

Operational efficiency and restructuring

• Comprehensive operational review in Q4 led to significant cost reductions and organizational changes.

• Sales and marketing teams were right-sized, and some services resources were shifted to lower-cost locations.

• Cost of sales and operating expenses are expected to decrease by over $1.5M annually.

• Streamlined cost base aims to support revenue growth and extend cash runway to breakeven.

Board and management changes

• Board restructured to be leaner; Ken West to step down, with Joe Gruttadauria taking on Interim Head of Sales role.

• Joe Gruttadauria is no longer an independent director; Sally Tilleray now chairs the Remuneration and Audit Committees.

• No current intention to appoint a new non-executive director, aligning with efficiency strategy.