FD
Technologies, previously known as First Derivatives, has released its financial
results for the first half of 2023. The report showcases significant growth in
its KX division, with an increase of 15% in Annual Recurring Revenue (ARR) to £69.3
million. However, profitability was not achieved in terms of the entire company.
Revenue slightly contracted, and the net result was a loss of £4.5 million for
the six-month period ending on August 31, 2023.
KX, a key
division of FD Technologies, has been a major contributor to the company’s
growth. The division reported an improvement of 15% in ARR, reaching £69.3 million.
Additionally, recurring revenue surged 23%, increasing the chances of
achieving the fiscal year 2024 target of at least 35% in ARR growth. The company
attributes this success to a shift from selling solutions to software products,
which has resulted in shorter sales cycles and greater scalability .
Overall,
the results were worse than for the same period in 2022. Revenue stood at
£142.5 million, a decrease of 3% from £147.4 million. The pre-tax loss amounted to
£4.5 million, compared to a £1.1 million profit a year earlier. As a result,
the loss per share (LPS) was 22.2 pence. The company explains that the decline in
revenue was due to “increased customer caution from lower investment
banking revenues.”
The results are a downturn from the report released a few months ago for the fiscal year 2023, in which FD Technologies showcased an annual revenue jump to £296 million.
However, the
company has expanded its cloud service provider (CSP) pipeline fourfold. This
was achieved by collaborating with go-to-market teams of major cloud platforms.
Specifically, KX launched kdb Insights Enterprise as a managed application on
Microsoft Azure, AWS KX managed service, and customer self-managed kdb Insights
and kdb Insights Enterprise across various cloud marketplaces.
“We have
continued to drive strategic progress across the Group in the first half, with
KX highlights including the launch of KDB.AI and strong progress with our
global partners,” Seamus Keating, the CEO of FD Technologies, commented. “We
delivered a resilient performance in First Derivative and MRP despite weaker
customer demand in their respective markets and will continue to manage these
businesses to protect margins while ensuring they are well positioned to grow
as demand improves.”
From First
Derivatives to FD Technologies
Until 2021, FD Technologies was known under the brand name First Derivatives, as a technology provider for investment banks and other financial companies. However, in its annual report, the company announced its intention to change its name. The main reason was to reflect the company’s broader range of activities, so it wouldn’t be solely associated with the derivatives market.
As FD Technologies, the company announced in 2022 the opening of a new office in Łódź, Poland. This was due to “significant” customer demand for the company’s services in that region of Europe.
FD
Technologies, previously known as First Derivatives, has released its financial
results for the first half of 2023. The report showcases significant growth in
its KX division, with an increase of 15% in Annual Recurring Revenue (ARR) to £69.3
million. However, profitability was not achieved in terms of the entire company.
Revenue slightly contracted, and the net result was a loss of £4.5 million for
the six-month period ending on August 31, 2023.
KX, a key
division of FD Technologies, has been a major contributor to the company’s
growth. The division reported an improvement of 15% in ARR, reaching £69.3 million.
Additionally, recurring revenue surged 23%, increasing the chances of
achieving the fiscal year 2024 target of at least 35% in ARR growth. The company
attributes this success to a shift from selling solutions to software products,
which has resulted in shorter sales cycles and greater scalability .
Overall,
the results were worse than for the same period in 2022. Revenue stood at
£142.5 million, a decrease of 3% from £147.4 million. The pre-tax loss amounted to
£4.5 million, compared to a £1.1 million profit a year earlier. As a result,
the loss per share (LPS) was 22.2 pence. The company explains that the decline in
revenue was due to “increased customer caution from lower investment
banking revenues.”
The results are a downturn from the report released a few months ago for the fiscal year 2023, in which FD Technologies showcased an annual revenue jump to £296 million.
However, the
company has expanded its cloud service provider (CSP) pipeline fourfold. This
was achieved by collaborating with go-to-market teams of major cloud platforms.
Specifically, KX launched kdb Insights Enterprise as a managed application on
Microsoft Azure, AWS KX managed service, and customer self-managed kdb Insights
and kdb Insights Enterprise across various cloud marketplaces.
“We have
continued to drive strategic progress across the Group in the first half, with
KX highlights including the launch of KDB.AI and strong progress with our
global partners,” Seamus Keating, the CEO of FD Technologies, commented. “We
delivered a resilient performance in First Derivative and MRP despite weaker
customer demand in their respective markets and will continue to manage these
businesses to protect margins while ensuring they are well positioned to grow
as demand improves.”
From First
Derivatives to FD Technologies
Until 2021, FD Technologies was known under the brand name First Derivatives, as a technology provider for investment banks and other financial companies. However, in its annual report, the company announced its intention to change its name. The main reason was to reflect the company’s broader range of activities, so it wouldn’t be solely associated with the derivatives market.
As FD Technologies, the company announced in 2022 the opening of a new office in Łódź, Poland. This was due to “significant” customer demand for the company’s services in that region of Europe.
