Crimson Tide (TIDE ), the provider of the mpro5 software platform, announced a further contract with an NHS Trust in southeast England, building on April's announcement of a 3-year £250k contract for its mpro5 smart app solution.
In April, the company announced the initial contract win with the NHS Trust, whereby the implementation of mpro5 would drive efficiencies and savings across the Trust's estates. Today Crimson said it has received a further contract to add Internet of Things (IoT) sensors, to enable one of mpro5's key differentiators - sensor driven actions.
The additional 3-year contract of £300k takes the full contract value to over £0.5m.
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As hinted in April, Crimson Tide's newest NHS contract has been expanded to include mpro5's sensor driven actions that should result in direct savings for the NHS Trust. The £0.5m contract provides significant revenue visibility for Crimson, and markets reacted accordingly, driving TIDE shares 7% higher in early trading.
The company also announced the renewal of 4 long-term contracts with major customers who resubscribed and added further users and use cases. All 4 clients will have been mpro5 subscribers for over a decade at the end of their new contracts with a combined total in excess of £650k of secured contracted revenue.
Crimson has shown strong momentum so far in 2023. Besides the NHS contract, it won its first US contract in January 2023 worth £250k, underpinning the company's long-term goal of expansion into North America.
Earlier in the year, Crimson announced a 30% uplift in revenues to £5.4m in a preliminary FY22 update. Year-end cash stood at £3.6m and annual recurring revenue was £5.8m, compared to £3.8m in FY21. Churn remained below 5% and gross margin was maintained at 84%.
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