Access Intelligence (ACC) , a software-as-a-service (SaaS) provider aimed at global marketing and communications, released a trading update for the year ended November 30, 2023 (FY23). Total revenue for the period is expected to be £62.4m, broadly flat from last year. Adjusted EBITDA is to grow by 204%, helped by initiatives to optimise the group's operating model in FY23. Adjusted EBITDA margin also improved materially to 11%, from 3% in FY22.
Access Intelligence expects adjusted EBITDA to be approx. £7.0m, up from £2.3m in FY22, slightly ahead of market consensus. The SaaS provider said it reduced its headcount as its AI-led technology platform enabled increased automation, and global integration enabled removal of duplicate roles. Net cash on November 30, 2023 was approx. £2.2m, with a new £3.0m financing facility in place to provide additional working capital headroom in FY24.
The group's annual recurring revenue (ARR) increased by £2.7m during the period, compared to last year's flat ARR growth. The improvement was underpinned by both improved renewal rates and new contract wins during the year. ARR growth in the APAC region had the strongest turnaround from -£2.5m last year to +£1.6m this year, helped by returning customers following ACC's acquisition of Isentia.
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A strong showing by Access Intelligence in FY23 as adjusted EBITDA more than tripled to £7.0m, beating market expectations, with a notable acceleration in ARR across all regions. The turnaround in the APAC region is noteworthy as the group's next-gen technology and services have been well-received by new and existing customers as well as return customers following ACC's acquisition of Isentia. Moreover, the introduction of ACC's next-gen platform into the APAC market has resulted in significant upsell and cross-sell opportunities. The growth in ARR increases confidence of revenue growth in FY24 as well as further improvements in margins and cash generation.
In Europe, a further increase in ARR is also expected in FY24, and in North America, the group will continue to focus on a select number of high value, high margin deals with corporate clients to improve long term ARR. The adjusted EBITDA and margin improvements in FY23 largely resulted from ACC's initiatives to improve operational efficiency, which will continue into FY24. As the group increases its global footprint, further opportunities to streamline the business should become available.
ACC shares rose 3.64% on the announcement.
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