Delivering on strategy
Annual Report 2023
Delivering on strategy
This has been a year of marked acceleration across the business, both in the financial performance of KX and First Derivative and the execution of strategy.
The decisions taken by the Board and executed by senior management in recent years have positioned KX as the high-performance engine for real-time analytics, just as a range of industries are beginning to understand the value they can generate from these insights.
Donna Troy
Chair
Our purpose
FD Technologies solves business-critical problems to unlock business value.
Who we are
We are a group of data and AI-driven businesses that unlock the value of insight, hindsight and foresight to drive organisations forward.
What we do
We give every business the ability to realise the true value of their data to achieve their potential.
Strategic report
Highlights
Financial highlights
Revenue | Adjusted EBITDA | |||||||
£296.0m | £34.8m | |||||||
2023 | £296.0m | 2023 | £34.8m | |||||
2022 | £263.5m | 2022 | £31.0m | |||||
2021 | £237.9m | 2021 | £40.5m | |||||
Business unit KPIs
KX growth in Annual Recurring Revenue (ARR):
39%
First Derivative revenue growth: | MRP revenue decline: |
18% | 19% |
Operational highlights
-
KX exceeded its targets with annual recurring revenue (ARR) up
39% to £65.3m (FY22: £47.0m) and net revenue retention of 119%
(FY22: 106%); incremental annual contract value (ACV) increased
by 93% to £18.7m (FY22: £9.7m) - Launched the industry's first Data Timehouse, positioning KX as the engine for real-time analytics in the cloud and delivering up to 100x the performance at 1/10th of the cost of alternative solutions*
- Significant progress with a range of existing and potential partners, including the general availability of kdb Insights Enterprise on Microsoft
Azure and an agreement to partner with AWS
- Continued our drive to accelerate time to value for customers, as well as making our technology easier to adopt and use; our progress is reflected in continued growth in industry, which accounted for more than 30% of ACV
- Momentum set to continue in the current year, benefiting from growing demand for real-time analytics as the foundation for AI-driven business innovation, the strengthening of KX leadership and growing market recognition for the return on investment that KX delivers
- First Derivative delivered revenue growth of 18%, also ahead of target, benefiting from multi-year strategic growth drivers, particularly relating to regulatory compliance and digital transformation
- Weaker demand environment continued at MRP, with revenue down by 19%; cost base aligned to protect EBITDA in the current year
- From independent benchmarking exercises and customer feedback.
In this report
Strategic report
- Highlights
- Business overview
- Chair's review
- Business model
- Strategy
- Key performance indicators
10 Engaging and working with our stakeholders
12 Business review
14 Business unit review: KX
17 Business unit review: First Derivative
- Business unit review: MRP
- Financial review
25 | Principal risks and uncertainties | Financial statements | |
30 | Corporate responsibility | 62 | Independent auditor's report |
and sustainability | 70 | Consolidated statement of | |
Corporate governance | |||
comprehensive income | |||
40 | Board of Directors | 72 | Consolidated balance sheet |
73 | Company balance sheet | ||
42 | Chair's governance statement | ||
74 | Consolidated statement of changes in equity | ||
44 | Governance framework | ||
76 | Company statement of changes in equity | ||
46 | Report of the Audit and Risk Committee | ||
78 | Consolidated cash flow statement | ||
49 | Report of the Nomination and | ||
ESG Committee | 79 | Company cash flow statement | |
52 | Report of the Remuneration and | 80 | Notes |
Talent Committee | 126 | Global directory | |
58 | Directors' report | ||
IBC Directors and advisers | |||
60 | Statement of Directors' responsibilities | ||
FD Technologies plc Annual Report 2023 |1
Strategic report
Business overview
Delivering impact
We are a group of data and AI-driven businesses that unlock the value of insight, hindsight and foresight to drive organisations forward.
KX
Software to accelerate AI-driven innovation
FY23 revenue: | ARR growth: |
£80m | 39% |
KX's mission is to accelerate the speed of AI-driven business innovation, enabling customers to transform into real-time, intelligent enterprises. Built for the most demanding data environments, at the intersection of big and fast temporal data, its Data Timehouse platform is trusted by the world's top investment banks and hedge funds and leading companies in the life and health sciences, semiconductor, telecommunications, and manufacturing industries.
At the heart of its technology is the kdb+ time-series database and real-time analytics engine, independently benchmarked as the fastest on the market. It can process and analyse time-series and historical data at unmatched speed and scale, empowering developers, data scientists, and data engineers to build high-performancedata-driven applications and turbo-charge their favourite analytics and AI tools in the cloud, on-premise, or at the edge.
Ultimately, its technology enables the discovery of richer, actionable insights for faster decision making which drives competitive advantage and transformative growth for customers.
See page 14
First Derivative
First Derivative - Consulting services which drive digital transformation in financial services and capital markets
FY23 revenue: | Revenue growth: |
£174m | 18% |
First Derivative is a specialist consulting firm operating in areas where expert knowledge is critical to success, whether it's in the realm of business, technical, or both. With deep vertical expertise in capital markets, banking operations and asset servicing - it has one of the largest fully dedicated capital markets consulting teams in the world - First Derivative's commitment to training and continuous improvement is the bedrock of its reputation of being able to solve the toughest of operational, data and technology challenges.
Offering one of the world's largest dedicated capital markets consulting teams, First Derivative operates from centres of excellence in the UK, Ireland, Canada, the US and mainland Europe.
See page 17
2 | FD Technologies plc Annual Report 2023
Our global reach for scale and growth*
3935P+6119P+65P+817P+9 | |||||||||||
Americas | UK | EMEA | Asia Pacific | ||||||||
39% | 35% | 19% | 7% | ||||||||
14 | 3,000 | 4 | |||||||||
locations | people | continents |
- Based on split of revenue.
Technology-enabled services
for enterprise demand generation
FY23 revenue: | Revenue decline: |
£41m | 19% |
MRP
Servicing more than 1,000 clients across the world, MRP focuses on the needs and challenges of enterprise sales and marketing teams. MRP Prelytix®, the only enterprise-class,account-based marketing (ABM) platform, is purpose-built to simplify the complexity of clients' operating environments, enabling account-based programmes that are coordinated with existing marketing programmes, across all global marketing initiatives. Ultimately MRP delivers growth to its customers through the highest quality, most innovative products and services in the ABM space.
See page 19
FD Technologies plc Annual Report 2023 |3
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FD Technologies plc published this content on 27 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 June 2023 13:08:02 UTC.