At the half year stage StatPro is in line with market expectations for revenue and profit, and customer numbers and subscriptions for the cloud-based Revolution offering are still climbing as it pulls in business from new and existing customers. That is all well and good but it is being pulled into the SaaS trap of escalating costs.
As it has previously said, it is using funds raised last November for additional sales and marketing, for R&D to increase the rate of development of new features, and to strengthen the client services team. That is a costly exercise. At the end of FY12 (see here) it had net cash of £3.7m having raised £6m but by the end of H1 (to June 30 2013) net cash was down to £2.8m. However, recurring revenue from Revolution rose 50% to £2.4m during the first six months of the year, and users of the traditional on premise StatPro Seven solution are also adopting Revolution which drove StatPro Revolution related revenue to £6.4m (vs. £4m in December 2012). Subscriptions are heading in the right direction and at a good pace although there is long way to go before they come close to the revenue generated by StatPro Seven.
The company also announced an out of court settlement with representatives of 55% of non-controlling shareholders of acquired SiSoft (see here) over the valuation of deferred consideration, resulting in a £1.0m payment, and a provisional judgement for the remaining 45% interest of between £0.6m-£0.9m.