Crimson Tide (TIDE) , the company behind field service management software platform mpro5, released unaudited interim results for the 6 months ended June 30 2023.
Crimson's revenues increased by 30.9% to £3.0m, up from £2.3m in H1 2022. Annual recurring revenue was up 35.1% to £5.9m from £4.4m a year ago, and gross margin was largely unchanged at 84.3%. The company swung to an EBITDA profit of £0.1m from a £0.3m loss last year. A notable revenue addition was a significant Internet of Things implementation for an NHS Trust, a validation of its decision to make IoT a major focus area.
Contracted long-term revenue exceeded 90% of total revenue and revenue churn was 5.5% from 1.0% last year. MRR per customer also increased, reflecting the company's focus on higher-value clients. 92% of revenues came from the UK. Cash at period end was £2.9m from £3.7m last year.
"Progress in the first half of the year has been positive. We have experienced strong revenue growth, and we have returned to EBITDA profitability as planned. Annual Recurring Revenue has increased significantly, and our pipeline has some very exciting opportunities" said Barrie Whipp, Founder and Chairman.
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A positive set of results overall from Crimson Tide, showing consistent growth in core recurring revenue and consistently high gross margins as the company returned to EBITDA profitability. Its pre-tax loss halved to £471k from £860k last year per management expectations while the company increased R&D spending. Cash balance remains a healthy £2.9m.
Crimson continued development of mpro5 during the period with a renewed focus on IoT and sensor-driven actions. The platform's Saturn release represents a major advancement and is being readied for deployment to Crimson's largest customers. In H2, the company will focus on the automation part of mpro5, which should boost revenues further. Crimson warned that H2 growth may be affected by an enterprise customer going into administration. However, the company has a strong pipeline of opportunities that should offset this and at least c.20% is still expected.
Crimson also said it has deprioritised development and marketing of the Beepro app in favour of a stronger focus on mpro5. Crimson explained that it will target a new B2C-focused app at a later date, but for the time being it is removing Beepro figures from its forecasts. A greater focus is also being placed on development of Crimson's partner ecosystem that was initiated in the US. While 92% of revenues in H1 still came from the UK, Crimson is focused on expanding in North America.
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