D4t4 Solutions PLC (AIM:D4T4, OTC:DFORF) said it slipped into a loss in the first half of the year, reflecting the second-half weighting of the business as well as ongoing investment.
A loss of £1.3mln before tax is expected for the six months to 30 September 2022 compared with a £0.1mln profit in the first half of FY22, in line with management expectations, according to the data solutions provider.
Revenue is set to increase to £8.1mln, up from £7.5mln last year, with annual recurring revenue also expected to grow, rising to £15.8mln from £14mln.
The group reassured that it remains debt free, with the cash balance standing at £26.2mln at the half-year end
D4t4 highlighted that it has continued to invest into sales and marketing, hoping to shorten sales cycles for an increasing number of potential customers, providing the company with good revenue visibility for the future.
CEO Bill Bruno said: "Our business continues to be second half weighted as expected, but with good revenue visibility to meet management expectations for the full year. Our continued investment in Sales and Marketing has created a strong direct pipeline of opportunities, which are showing promising signs of shortening the sales cycle in our business that has been historically longer. We continue to further our investment in driving ARR across both the CDP and FDP products and remain focused on executing successfully during the second half of our year."