Shares in Sopheon PLC (AIM:SPE) surged 16% to 669.8p after a bullish outlook from the innovation and product management software company accompanied solid results for the past calendar year.
The results were in line with its January trading update, with adjusted earnings (EBITDA) of US$6.9mln up 12%, on revenue up 10% on a constant currency basis to US$36.8mln, with annual recurring revenue reaching US$24.3mln at the start of 2023 from US$20.7m a year earlier.
As well as integrating two acquisitions, ROI Blueprints from late 2021 and Solverboard from last May, the group won 16 new customers, up from 10 the year before for its Accolade software that tracks "strategy execution progress".
As Sopheon shifts to selling its software as a service (SaaS), all but one new client was signed to this model, with 13 existing clients shifted to SaaS, including the largest order in the company's history, with the US Navy.
Chairman Andy Michuda said acquisitions and new products tripled its addressable market, with the board's ambition being to double run-rate revenue every three to four years, "with world class margin and retention metrics", which he said will require a contribution from acquisitions and accelerated organic growth.
"We start 2023 with a strong foundation of ARR, a stable of new products, and a growing sales pipeline."
The shares, which have a long and winding history, had lost more than half their value between 2019 and last summer, when they fell to a multi-year low below 500p, but have fought back since.