TradeWindow’s annual loss narrows while revenue jumps

TradeWindow's loss narrowed in the March year. Photo / File

Software specialist TradeWindow said its operating revenue jumped in the March year while its net loss narrowed.

Earnings before interest, tax, depreciation and amortisation (ebitda) came to a loss of $11.7m, up 22 per cent, while the net loss for the year narrowed by 10 per cent to $9.8m.

Trading revenue came to $4.9m, up 27 per cent.

Chief executive AJ Smith said TradeWindow’s strong growth reflected increased demand for its digital trade solutions.

“Exporters, importers and freight forwarders are seeing the benefits of moving from manual processes to digital trade and are selecting TradeWindow solutions to be more efficient, connected and transparent,” he said.

The company’s revenue increase reflected solid organic growth and the full-year impact of prior acquisitions, he said.

Annualised recurring revenue (ARR) grew by 39 per cent to $5.2m, the result of strong sales growth and 93 per cent customer retention.

Total operating expenses were $17.4m, up 21 per cent from $14.4m, reflecting planned investments in market development and the global trade platform.

In March, TradeWindow announced cost reductions to put the business on a more sustainable footing.

These reductions will be visible in 2024, the company said.

Smith said TradeWindows’ business momentum is continuing to build, with a particularly strong final quarter of 2023.

At balance date, TradeWindow’s cash balance was $6.1m.

In February, TradeWindow said it had secured $5.4m under a non-underwritten capital raising, which had targeted raising $20m.

Key investors supported the offer.

In acknowledging the challenging funding market, TradeWindow announced cost reductions to reduce cash usage to a more sustainable level, with a more conservative approach to its R&D investments.

Following the cost reductions, TradeWindow anticipated sufficient funding for the 2024 year, without any new capital receipts.

TradeWindow said it continued to consider its capital requirements for 2024 and beyond.

Looking ahead, Smith said: “We anticipate that demand will be driven by exporters, importers, and freight forwarders seeking cost efficiencies from technology and needing to meet new regulatory standards, especially in food traceability.”

The company confirmed its guidance for 2024 trading revenue at $7.0m to $8.0m.

It anticipated achieving monthly EBITDA breakeven by the end of 2025 and monthly cashflow breakeven in 2026.

The tech startup debuted on the NZX in November 2021 at a 25 per cent premium, giving it a market capitalisation of $99m.

The company saw its share price trade at $1.15 - up from its 92c reference price.

TradeWindow was a compliance listing.

By complying with NZX disclosure rules it has the option of raising capital from the market.

The stock last traded at 37.5c, down from its January 2022 peak of $2.80, and giving it a market cap of $42.4m.