– Intellect Design Arena

Intellect Design Arena

For reference, the previous guidance was as follows:

Lengthening sales cycles linked to a number of large deals in the pipeline, subscription revenue of USD 17.2m significantly below expectation
Banks more cautious in their decision making given future macro economic uncertainty
Term license revenue of USD 16.6m in line with expectations, mainly driven by deals closed early in the quarter that had not moved to the subscription pricing model
Sales execution also impacting deal closures; action on sales leadership taken, the Chief Revenue Officer has left the business effective immediately
Accelerating growth in SaaS revenue from mix of new business and additional consumption from existing clients, with no visible impact on decision making by non-incumbents and smaller banks from macro economic uncertainty
Good growth in ARR in the quarter, up 16% (c.c.)
Services returned to growth this quarter, still impacted by accelerated shift to partner model
Cost increases driven by combination of wage inflation and increased services costs driven by incremental partner costs around a number of implementations
Underlying operational costs in the quarter were as expected
EBIT decline of 53% impacted by lower subscription revenue and cost increases
FY-22 guidance revised and de-risked to reflect macro impact, sales execution and services costs
Revised FY-22 guidance (constant currency) of ARR growth of 17-18%, Total Software Licensing growth of 0% and EBIT decline of 25%

Subscribe To Our Free Newsletter

Intellect Design Arena