Datalex posts lower revenues and wider losses for 2024
Airline e-commerce platform Datalex has reported lower revenues and wider losses for the year to the end of December but said it had achieved several positive developments during the year, including the migration of four airlines to its new "Stellex" platform.
Datalex said its annual revenue dipped by 5% to $27.5m from $28.9m the previous year while its loss after tax widened by 13% to $10.2m from $9m.
It said the fall in revenues was mainly due to a number of customer contracts ending in 2023, creating a drag on year-on-year growth as this revenue did not recur in 2024.
Today's results shows that Datalex's "Platform"revenue increased by 24% to $16.1m from $12.9m, driven by ongoing customer activations and the transition of customers to a SaaS licence and transaction fee model.
But its "Services" revenue decreased by 27% to $10.2m from $14.1m, after the cessation of contracts with Scandinavian Airlines and Virgin Australia in 2023.
The company said its total operating expenses increased by 5% to $13.3m on the back of higher insurance and IT expenses because of inflationary pressures.
Looking ahead, Datalex said it had entered 2025 with a solid recurring revenue base and strengthened balance sheet having repaid its loan facility.
"Our financial ambition and priorities will be focused on growing total revenue year on year, continuing to deliver strong platform revenue growth, expanding gross profit margins, and restoring the business to EBITDA profitability," it added.
Jonathan Rockett, Datalex's CEO, said the company achieved several positive developments in 2024, including the launch of its Offer and Order solution, Stellex, and the successful activation and migration of four airlines to this new platform.
He also said the company raised €25m in equity to strengthen it balance sheet.
"Whilst it was disappointing to see revenue decline, after excluding non-recurring revenue, the underlying performance and momentum in platform revenue is promising. The financial performance in 2024 does not reflect the progress made, and I am confident that the actions we have taken will deliver stronger financial performance in 2025," he said.
"2025 has kicked off strongly with the launch of a new modular standalone product, DLX Pay, which is planned to go-live with our launch customer, Air Transat, later this year," the CEO stated.
"Our focus for 2025 is to drive strong platform revenue growth, improve margins, and achieve EBITDA profitability," he added.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Post
16-05-2025
- Business Post
‘Not reflective of our work' - Datalex chief Jonathan Rockett on firm's 2024 losses
Business Post subscribers can read: • Why Jonathan Rockett says Datalex's $10.2m loss doesn't reflect the company's real performance • How new Saas products like Stellex Plus could speed up airline integration and revive growth • What went wrong with Scandinavian Airlines and Virgin Australia — and how it hit Datalex's bottom line Datalex chief executive Jonathan Rockett has said he doesn't think the company's 2024 financial results were reflective of the company's ambition or the work undertaken.
RTÉ News
15-05-2025
- RTÉ News
Datalex posts lower revenues and wider losses for 2024
Airline e-commerce platform Datalex has reported lower revenues and wider losses for the year to the end of December but said it had achieved several positive developments during the year, including the migration of four airlines to its new "Stellex" platform. Datalex said its annual revenue dipped by 5% to $27.5m from $28.9m the previous year while its loss after tax widened by 13% to $10.2m from $9m. It said the fall in revenues was mainly due to a number of customer contracts ending in 2023, creating a drag on year-on-year growth as this revenue did not recur in 2024. Today's results shows that Datalex's "Platform"revenue increased by 24% to $16.1m from $12.9m, driven by ongoing customer activations and the transition of customers to a SaaS licence and transaction fee model. But its "Services" revenue decreased by 27% to $10.2m from $14.1m, after the cessation of contracts with Scandinavian Airlines and Virgin Australia in 2023. The company said its total operating expenses increased by 5% to $13.3m on the back of higher insurance and IT expenses because of inflationary pressures. Looking ahead, Datalex said it had entered 2025 with a solid recurring revenue base and strengthened balance sheet having repaid its loan facility. "Our financial ambition and priorities will be focused on growing total revenue year on year, continuing to deliver strong platform revenue growth, expanding gross profit margins, and restoring the business to EBITDA profitability," it added. Jonathan Rockett, Datalex's CEO, said the company achieved several positive developments in 2024, including the launch of its Offer and Order solution, Stellex, and the successful activation and migration of four airlines to this new platform. He also said the company raised €25m in equity to strengthen it balance sheet. "Whilst it was disappointing to see revenue decline, after excluding non-recurring revenue, the underlying performance and momentum in platform revenue is promising. The financial performance in 2024 does not reflect the progress made, and I am confident that the actions we have taken will deliver stronger financial performance in 2025," he said. "2025 has kicked off strongly with the launch of a new modular standalone product, DLX Pay, which is planned to go-live with our launch customer, Air Transat, later this year," the CEO stated. "Our focus for 2025 is to drive strong platform revenue growth, improve margins, and achieve EBITDA profitability," he added.
Irish Times
15-05-2025
- Irish Times
Datalex targets positive earnings first time in five years
Datalex , the Dublin-listed retail software provider to airlines, said on Thursday it expects to return to positive earnings this year as more carriers move onto its new platform of products spanning the booking of air fares and seats to cars and hotels. The group's loss before interest, tax, depreciation and amortisation widened 7 per cent last year to $3.1 million (€2.76 million), the company said in a statement. The result was in line with expectations. However, it said that it is targeting profitability at this line in 2025, which would be the first positive result in five years. Revenues dipped 5 per cent last year to $27.5 million. However, within this, platform revenue jumped 24 per cent to $16.1 million as services revenue slid 27 per cent to $10 million, driven by Virgin Australia scrapping a plan to overhaul its retail offering in 2023 and Scandinavian airline SAS not proceeding with a Datalex product as it filed for bankruptcy protection the same year. Datalex has shifted in the past five years from a company that built bespoke, and expensive, systems for airlines to essentially selling off-the-shelf software products designed to help carriers get the most out of customers. READ MORE The company raised €25 million last autumn in a multipronged share sale, with most of the money being used to repay expensive loans to its main shareholder, Dermot Desmond , who had been a consistent provider of finance since the company was rocked in 2019 by an accounting scandal and, subsequently, the Covid-19 pandemic. Mr Desmond's IIU Nominees unit increased his stake in the company to 49.3 per cent from 40.3 per cent as a result of the equity raise. Datalex owed another Desmond vehicle, Tireragh, more than €19 million, including built-up and unpaid interest and fees before transaction. Datalex hired Jonathan Rockett, the former managing director of mobile top-up platform Ding, as its chief executive in late 2023. 'We achieved several positive developments in 2024, including the launch of our offer and order [management] solution, Stellex, and the successful activation and migration of four airlines to this new platform,' said Mr Rockett. 'Whilst it was disappointing to see revenue decline, after excluding non-recurring revenue, the underlying performance and momentum in platform revenue is promising. The financial performance in 2024 does not reflect the progress made, and I am confident that the actions we have taken will deliver stronger financial performance in 2025.' Shares in Datalex rose 8.6 per cent to 38 euro cents in early trading in Dublin. Datalex reiterated that it plans to raise further capital in 2025. The stock is currently trading at a discount to the 45c-level at which it raised equity last September. 'The quantum and timing of this capital raise will depend on the pace of investment in the company's anchor solution and new product offerings, and the funding required to support the implementation of new business opportunities,' the company said, which ended 2024 with $6.4 million of cash on its balance sheet. Goodbody Stockbrokers analyst Dudley Shanley said that 2024 'was all about laying the foundations for growth' at Datalex. 'Given the improved balance sheet position any additional capital will be used to drive the business forward rather than to deal with legacy debt issues,' he said. 'The timing and the amount of the capital raise will depend on the pace of investment into the product portfolio and the requirement for working capital to support new revenue opportunities.'
