Company of the Month July 2023: FD Technologies’ growth continues

Newry-based FD Technologies reported a considerable increase in sales and profits this summer. FD Technologies is our Company of the Month July 2023, in association with KPMG.

Company of the Month

The Company of the Month Award, in association with KPMG, recognises outstanding Irish companies. It especially acknowledges those who have made significant contributions to the business community of Ireland.

Recipients of the award are automatically put forward as candidates for the prestigious Company of the Year Award at the annual Business & Finance Awards.

FD Technologies

Newry-based FD Technologies have reported a revenue increase of 12% up to €345 million after the firm reported as company profits also increased by 12% up to €40.6 million.

The FD Group includes three business units: KX Software, First Derivative services and MRP marketing technology.

Both the KX Software division and First Derivative services segment performed well.

KX software exceeded expectations with recurring revenue jumping 39% to €76.2 million in the year to February 2023. The division also achieved revenue retention of 119% as the value of annual and incremental contract value rose by 93% to €21.8 million.

First Derivative also outperformed their targets as the division attained revenue growth of 18% however the MRP segment of the firm struggled as revenue fell by 19%.

Moving forward

FD Technologies stated it expects to achieve full year revenue for 2024 in the range of €367 million–€379 million with adjusted EBITDA projected to land between €44 million–€47 million.

“We are pleased with a year of strong execution on our strategy, with KX and First Derivative beating our expectations for FY23,” said Seamus Keating.

“KX in particular has made strong commercial and strategic progress. Our price to performance advantage is particularly compelling for the hyperscale cloud providers, as evidenced by our partnerships with market leaders Microsoft and AWS.”

“We have a range of initiatives that we are progressing with these and other partners that provide confidence in our outlook,” he continued.

“First Derivative also performed strongly in FY23, delivering impressive revenue growth of 18 per cent for the period. We continue to see multi-year strategic growth drivers that underpin demand for our services.”

“We have set ourselves ambitious but sustainable growth targets for the years ahead which will ensure we are focused on driving high-quality recurring revenue growth from an expanding list of customers across a wide range of industries, while generating value for shareholders,” he added.