In This Article:
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Total Revenue: $5.3 million, a 2% decrease from $5.4 million in H1 2023.
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License Subscription and Support Revenue: $3.4 million, down from $4.3 million in the prior year.
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Services Revenue: Increased 90% to $1.9 million from $1 million in H1 2023.
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Full Year Revenue Forecast: $14.8 million, with $9.5 million expected in H2 2024.
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IPM ARR Growth: 3% increase with a 13% growth in customer count to 18 customers.
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Brand Vision ARR Growth: 33% increase with a 22% growth in customer count to 11 customers.
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PictureDesk ARR Decrease: 31% decrease with a 9% reduction in customer count to 104 customers.
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Gross Margin: Increased to 53% from 50% in the prior year.
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License Subscription and Support Margin: Decreased to 48% from 65%.
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Services Margin: Increased to 61% from 50%.
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Cash on Hand: $2.2 million, down from $3.2 million at the end of 2023.
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Receivables: Decreased from $6 million to $3.4 million from December to June.
Release Date: September 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fadel Partners Inc (LSE:FADL) has successfully launched its LicenSee offering, winning three new customers and building a strong pipeline of deals.
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The company has seen a 33% growth in ARR for its Brand Vision product, with no logo churn during the first half of 2024.
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Services revenue increased by 90% to $1.9 million, driven by new IPM implementations and regional expansions.
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Gross margin for the first half of 2024 increased to 53% from 50%, with services margin significantly up to 61%.
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Fadel Partners Inc (LSE:FADL) has strategically enhanced its sales and marketing teams, leading to improved pipeline management and client wins.
Negative Points
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Total revenue for the first half of 2024 decreased by 2% to $5.3 million compared to the same period in 2023.
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License subscription and support revenue dropped from $4.3 million to $3.4 million, mainly due to customers transitioning to self-hosted environments.
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PictureDesk ARR decreased by 31%, with a significant customer churn impacting the overall ARR.
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Cash on hand decreased from $3.2 million at the end of 2023 to $2.2 million by mid-2024.
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The pricing environment in 2024 has been softer, with companies looking to maximize their spend, leading to some delays in decision-making.
Q & A Highlights
Q: How are you positioning the business to diversify revenues and manage revenue concentration? A: (Tarek Fadel, CEO) We are diversifying through our two main product lines: IP Management Suite and Brand Vision. These products target different buyers in various industries, such as finance teams for IP Management and marketers for Brand Vision. Additionally, we are expanding geographically, focusing on North America and Western Europe.