First Derivatives has provided an update on its financial performance for the four months ending on the 30th of June 2020 this Wednesday ahead of its Annual General Meeting which will take place later today.
During this period, total revenue for the financial software and consulting company has increased by 6 per cent when compared with the same period of the previous year. According to the company’s statement today, this reflects the company’s resilience during COVID-19.
Managed services and consulting revenue recorded a growth of 2 per cent against the prior year period. According to First Derivatives, this is because it continued to benefit from high visibility and repeat nature of its client engagements.
“As expected there has been some deferral of new project engagements, the financial impact of which to date has been partially mitigated by lower recruitment and cost management,” the company said in the statement today.
During the four month period ended on the 30th of June, software revenue was higher by 8 per cent on an annual comparison, led by growth in recurring licence and subscription revenue. However, this was offset slightly by a drop in perpetual licence revenue.
This is due to the fact that new software sales are now taking longer because of the coronavirus pandemic. Cash generation during the period was in line with the firm’s expectations.
“The Board continues to believe that it is still too soon to determine the likely outcome for the full year but is encouraged by performance to date and will continue to invest to deliver against the market opportunity. The Group remains strategically well placed and we are encouraged by the growing demand for Kx streaming Analytics from potential customers and partners.”
First Derivatives closes FY2020 with 9% revenue increase
For its fiscal 2020 year, which ended on the 29th of February 2020, First Derivatives posted revenue of £237.8 million, which represented a yearly uptick of 9 per cent. As Finance Magnates reported, gross profit also improved by 11 per cent in the company’s fiscal 2020, rising from £91.3 million in the prior-year period, to reach £101.1 million in the 2020 financial year.
