PCI-PAL (PCIP) H2 2024 earnings summary

Executive summary

• FY24 revenue rose 20% to £17.96m, recurring revenue grew 24% to £16.06m, and exit ARR increased 23% to £15.45m.

• Adjusted EBITDA reached £0.87m profit, the first full year of adjusted EBITDA profit since relaunch; operating cash flow was positive.

• Customer retention was 97% and net revenue retention was 102%; the partner ecosystem expanded, including a global reseller agreement with Zoom.

• Patent litigation was fully settled after successful UK court outcomes, removing a major distraction and cash drain.

• Year-end cash was £4.33m, with access to an undrawn £3m credit facility.

Financial highlights

• Revenue was £17.96m, up 20%; recurring revenue increased 24% to £16.06m, or 89% of total revenue.

• Gross profit rose 22% to £16.02m; gross margin was 89.2%, up 160 bps from 87.6%.

• Adjusted EBITDA was £0.87m profit versus a £1.11m loss; reported EBITDA loss narrowed to £0.28m from £3.70m.

• Adjusted loss after tax narrowed to £0.08m from £2.64m; statutory loss before tax improved to £1.71m from £4.89m.

• New ACV sales were £3.76m, down 10% YoY, while exit TACV rose 17% to £19.21m.

Outlook and guidance

• Management expressed confidence in continued FY25 growth, supported by a strong pipeline and multi-year opportunity; FY25 Q1 new business ACV was on target and sales were in line with expectations.

• Management expects TACV growth of 18%-20% over the next three years and aims to accelerate growth from a profitable base.

• Further FY25 investment is planned, including sales and marketing, partner onboarding, customer time to value and product enhancements.

• FY25 revenue comparisons are affected by deferred revenue recognition, with a double contribution in FY25; management advised looking beneath headline growth forecasts.

• Plans include conversational AI partnerships, a voice/chat payment-bot API and internally developed AI products.