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Cloud services provider Essensys reported lower first-half earnings that met expectations as an investment in sales and marketing in the run-up to its IPO offset higher revenue.
For the six months ended 31 January 2020, adjusted earnings (EBITDA) was expected to be in line with management expectations at approximately £1.8m, down from £2.0m on-year, while revenue increased 19% to £11.4m on-year and recurring revenue was £9.7m, up 29% on-year.
The company blamed the fall in adjusted earnings (EBITDA) on the full-year effect of the additional investment in sales and marketing, product development and the expansion of the group's US operations in the run up to the IPO and in the early part of the first half of 2020.
Annual recurring revenue run rate was £19.7m, an increase of 28%.
The company closed the half year with 400 live connect sites, an increase of 32% year-on-year, with an additional 40 new connect sites contracted for delivery.
'This strong first half performance, supported by the number of contracted new Connect sites currently in delivery and a healthy pipeline underpins the board's confidence that full-year results will be in line with market expectations,' Essensys said.
At 9:39am: (LON:ESYS) share price was +5p at 235p