Softbinator Technologies posts consolidated revenues of 16.8 million lei and a net profit of 4 million lei in the first half of 2022
Softbinator Technologies (BVB: CODE), a Romanian software development services company focused on blockchain, artificial intelligence, and DevOps, posts for the first half of 2022 consolidated revenues of 16.8 million lei, a gross profit of 4.6 million lei and a net profit of 4 million lei. The financial results at the consolidated level include the performance of Softbinator Technologies, Wise-Up, Ixperi, [e-spres-oh], and Digital Tailors.
“The consolidated revenues and net profit generated by the group in the first half of 2022 are double compared to the performance recorded in the same period at the individual level by Softbinator Technologies alone. Moreover, the consolidated result generated by our group in the first semester of 2022 equals the full-year individual result recorded by Softbinator in 2021. This excellent performance was made possible by a diversified strategy across all the companies in our group, whereby we could to grow each business individually. However, I am the most pleased that at the group level, we have teams working towards the same goal: to grow across all the companies by generating business where execution is most appropriate. Today, thanks to these teams, we can deliver more, more efficiently to all our clients,” stated Daniel Ilinca, founder and CEO of Softbinator Technologies.
At an individual level, in the first half of 2022, Softbinator Technologies generated total revenues of 9.2 million lei, up 20% compared to the same period 2021, while the net turnover was 8 million lei, an increase of 19% compared to first semester of 2021. Seven new contracts concluded mainly with the US customers drove the revenue increase in the first half of 2022. Three of these projects are in the blockchain area, and the remaining are from medical, social media, and video editing tools segments. Consequently, the excellent performance and continuous cost control generated a gross individual result of 2.2 million lei, an increase of 34%, and a net profit of 1.9 million lei, a 35% year-on-year increase.
Regarding the group’s development in the first six months of 2022, the first step in this direction was opening an office in Silicon Valley, USA, as the American market is the primary generator of customers for Softbinator. Also, in May and June, the company started the procedures for the complete takeover of Digital Tailors and [e-spres-oh]. With the takeover of Digital Tailors, the group strengthened its service area by adding a new services category, product marketing, while with the takeover of [e-spres-oh], Softbinator expanded regionally and strengthened its delivery capacity to international customers.
The blockchain department made significant progress in the first six months of the year, even though the crypto sector is going through a recession. Softbinator began a partnership with a US game dev studio to provide a blockchain solution for their games. Moreover, in the first half of 2022, Softbinator continued the development of the proprietary Softbinator Magic Stack (SMS) product, an ecosystem containing the most commonly used components in software product development. SMS greatly reduces the time to market for a product launch and helps maintain the high quality, security, and scalability standard. This type of product can only be found at large global software vendors such as IBM and Accenture.
Considering the accelerated progress in the first semester of 2022, the positive outlook for the remainder of the year, and the acquisitions of new companies in Q2 2022, Digital Tailors and [e-spres-oh], Softbinator’s management provided shareholders with an update on the budget for the full year 2022. As a result, for 2022, the company targets consolidated operating revenues of 32.2 million lei, an increase of 23% compared to the budget approved during the Ordinary General Meeting of Shareholders from April 13th, 2022, gross profit of 6.9 million lei, higher with 17%, and net profit of 6.2 million lei, a 25% increase.
For the remainder of the year, Softbinator will focus on strengthening its presence in the US market, with the goal that by the end of 2022, 70% of new customers will come from the US market. The company also plans to continue identifying new companies for acquisitions.
“The results achieved by our group companies confirm that our M&A strategy is viable. We believe that 2022 and 2023 will continue to be good years for M&A, as smaller but well-specialized companies will be keen to join our group to work on high-profile international projects with great visibility that offer exposure to the highest technology standards. For this purpose, and the further organic growth of the Softbinator team, we plan to raise additional funds, approximately 12 million lei, through the capital market, both a share capital increase and corporate bonds. In this context, next week, we will convene a General Meeting of Shareholders for the approval of bond issuance,” added Daniel Ilinca.
Softbinator Technologies’ shares are listed on the AeRO market of the Bucharest Stock Exchange as of December 17th, 2021, and are traded under the CODE symbol. Currently, the company has a market capitalization of over 73 million lei.
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Note: Since its listing, Softbinator Technologies has presented the M&A campaign as a major activity of interest, intending to build an ecosystem – a group of companies providing complex solutions. The results presented above do not meet the criteria that make it mandatory to prepare consolidated financial statements in accordance with OMF 1802/2014. However, the company’s management considers it relevant to present them at the level of the entire group, as they are prepared following the principles of consolidation.
About Softbinator Technologies
Softbinator Technologies, a Romanian company with accelerated growth, provides software development services using cutting-edge technologies with a strong focus on Blockchain, Artificial Intelligence, and DevOps. The company’s services and products are used globally by startups, SMEs, unicorns, and Fortune 500 clients, with whom they built versatile teams that respect the Agile methodology. The organization’s profile is oriented towards product development, which is appreciated for its ability to deliver results quickly. Softbinator Technologies has over 180 programmers and collaborators in Bucharest, Brasov, Constanta, Iasi, and Timisoara.