Datalex said on Wednesday that it is currently reviewing the company’s long-term strategy under its new chief executive, as the travel retail software company expects revenue for 2023 to have grown by 23 per cent to $28.9 million (€26.6m).
The company had previously forecast that revenue would grow by about 15 per cent last year as it benefited from the post-pandemic travel recovery.
Datalex now expects to report a loss before interest, tax, depreciation and amortisation of $2.9 million for last year, which marks an improvement from a $5.3 million loss for 2022, it said in a trading update. It added that 2023 was “a turnaround year for the global aviation industry”, and Datalex benefited as passenger traffic volumes further recovered and airlines continued to invest in their ecommerce technology.
“The group entered 2024 with a strong recurring revenue base and has a solid pipeline of growth that will be unlocked as new customers are activated further,” it said.
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The company renewed contracts in 2023 with key existing customers JetBlue, Air China, Air Transat and Aer Lingus, and it signed new deals with LatAm Airlines and Air Macau.
“As go-live milestones are achieved, higher margin platform revenue is expected to materially drive revenue growth, with expectations that this will be most pronounced commencing in 2025,” the company, which has been led since November by chief executive Jonathan Rockett, said.
“We are currently reviewing our longer-term strategy and how we can maximise long-term value creation for our customers and shareholders. A key focus for the group is to ensure that we continue to prioritise operational excellence across all areas of our business. Efficiency and productivity will be important to achieve our goal of improving bottom line performance in addition to top line revenue growth.”
The company’s cash at the end of last year totalled $5.8 million, down from $6.5 million in December 2022.
Datalex owed €13 million to its main shareholder Dermot Desmond’s Tireragh vehicle as of September and faces having to raise alternative funding this year to refinance those high-cost loans – which carry a rate of 18 per cent – before they mature in December. The company had looked last year at carrying out an equity raise, but decided to hold back because of its depressed share price.
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