Claranova: FY 2021-2022 Revenue

Regulatory News:

Claranova (Paris:CLA) reported annual revenue of €474 million for FY 2021-2022, successfully holding its ground during unprecedented economic conditions combining the effects of new marketing constraints for PlanetArt activities (changes to customer targeting process following the introduction of Apple's new iOS) and pressure on prices following the conflict in Ukraine. Thanks to its agility and diversified business mix, Claranova was able to deliver a strong performance in Q4 2021-2022 with revenue of €102 million, up 4% from last year’s same period). This last quarter also includes initial effects of the internal marketing adjustments made to improve customer targeting by the PlanetArt division and the positive trend for Avanquest software publishing activities and myDevices Internet of Things businesses, up respectively 9% and 107% at actual exchange rates compared with Q4 2020-2021.

Revenue trends by division for FY 2021-2022:

Revenue trends by division for Q4 2021-2022:

PlanetArt: initial positive impacts of the new marketing strategy

Bolstered by the first effects of the new marketing strategy to optimize the customer targeting process, PlanetArt reported Q4 revenue of €76 million, up 1% at actual exchange rates. The division's annual revenue for the period achieved €366 million, contracting 4% at actual exchange rates compared with a particularly dynamic FY 2020-2021.

While the impact of marketing constraints since the rollout of Apple's App Tracking Transparency (ATT) feature continue to weigh on customer acquisition costs, all PlanetArt teams are fully focused on getting back on track for growth by rebuilding effective customer acquisition channels.

Indeed, the division's market potential remains as important as ever with its growth capacity intact. In addition, PlanetArt benefits from strong competitive differentiation in terms of its product lines, business model and geographic presence, which contributed to further market share gains during this difficult year.
Highlighting its confidence in its growth prospects, PlanetArt continued to invest over the past 12 months to strengthen its teams and infrastructure, convinced that it will emerge from this transition period even stronger and rapidly return to a path of strong growth.

Avanquest: annual revenue above €100 million (+18%)

Maintaining the momentum of previous quarters, the Group's software publishing division had Q4 revenue of €25 million, up from €23 million in the same quarter last year, with 9% growth at actual exchange rates (2% at constant exchange rates). On that basis, the division reported annual revenue for FY 2021-2022 of €102 million, up 18% at actual exchange rates (12% at constant exchange rates).

Avanquest's proprietary SaaS security and PDF software solutions, on the other hand, experienced stronger growth:

- For its security solutions (under the Adaware brand), growth was 24% at actual exchange rates (€43 million for FY 2021-2022 compared with €34 million last year);

- For its PDF solutions (under the Soda PDF brand), 26% growth at actual exchange rates to €27 million, up from €21 million one year earlier;

- For its photo applications (under the InPixio brand), growth was identical to that of Avanquest as a whole of 18% to €8.2 million (up from €7 million in FY 2021-2022).

This strong growth in its proprietary software was bolstered by the introduction of new products in FY 2021-2022, including SodaPDF 14, InPixio 12 and Adaware VPN. Furthermore, the integration of PDF Forge, acquired on July 1, 2022⁵, will contribute to the improvement of the division's revenues as of the next fiscal year.

myDevices: €5 million in annual revenue (+36%)

The Group's IoT division recorded Q4 revenue of €2 million, up 107% at actual exchange rates (88% at constant rates). For the full fiscal year, myDevices had revenue of €5 million, representing growth of 36% at actual exchange rates (29% at constant exchange rates).

This increase was accompanied by growth in annual recurring revenue, with ARR of €2.4 million at June 30, 2022, up 75% from one year earlier at actual exchange rates.
The number of partners distributing the myDevices technology to their customers rose over the same period from 82 to 178 distributors, an 85% increase in the year.

Financial calendar:
October 12, 2022: FY 2021-2022 full-year results

About Claranova:

As a diversified global technology company, Claranova manages and coordinates a portfolio of majority interests in digital companies with strong growth potential. Supported by a team combining several decades of experience in the world of technology, Claranova has acquired a unique know-how in successfully turning around, creating and developing innovative companies and proven its capacity to turn a simple idea into a worldwide success in just a few short years.

Present in 15 countries and leveraging the technology expertise of nearly 800 employees across North America and Europe, Claranova is a truly international company, with 95% of its revenue derived from international markets.

Claranova’s portfolio of companies is organized into three unique technology platforms operating in all major digital sectors. As a leader in personalized e-commerce, Claranova also stands out for its technological expertise in software publishing and the Internet of Things, through its businesses PlanetArt, Avanquest and myDevices. These three technology platforms share a common vision: empowering people through innovation by providing simple and intuitive digital solutions that facilitate everyday access to the very best of technology.

For more information on Claranova group:
https://www.claranova.com or https://twitter.com/claranova_group

Disclaimer:

All statements other than statements of historical fact included in this press release about future events are subject to (i) change without notice and (ii) factors beyond the Company’s control. Forward-looking statements are subject to risks and uncertainties beyond the Company’s control that could cause the Company’s actual results or performance to be materially different from the expected results or performance expressed or implied by such forward-looking statements.

Appendices

Appendix 1: Restated Q1 revenue over 2020-2021 and 2021-2022

Appendix 2: Restated Q2 revenue over 2020-2021 and 2021-2022

Appendix 3: Restated Q3 revenue over 2020-2021 and 2021-2022

¹ Internet of Things
² Annual Recurring Revenue.
³ EBITDA as a percentage of revenue.
⁴The difference with previous published figures reflects an accounting correction to the Avanquest Software division’s revenue arising from the application of IFRS 15 on the recognition of revenue over time from Soda PDF subscriptions transferred to a cloud-based model in August 2020. Details of the restatement by quarter for FY 2020-2021 and FY 2021-2022 are provided in the Appendix.
⁵ Press release of 4 July 2022

CODES
Ticker :  CLA
ISIN : FR0013426004
www.claranova.com

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