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Alfa Financial Software Holdings PLC on Tuesday said trading remained strong in its latest quarter, and that Software guidance remains unchanged despite revenue falling. The London-based software developer said Software revenue decreased in the third quarter of 2023, when compared to the previous year’s ‘strong chargeability’ and higher run rate. Alfa attributed this to its focus on product investment in the current half year, and reduced customised licence revenue recognition ‘as we transition to a subscription licence model’. Alfa accordingly reported ‘double-digit’ growth in Subscription revenue, continuing its ‘strong sequential growth’ since the firm started transitioning away from perpetual licences. Services revenue, meanwhile, increased ‘slightly’. Alfa said it is currently focused on future product roadmap development, with its new Alfa Systems 6 platform set to be released ‘over the next 12 months’. The company has also ‘decided to integrate our development of [artificial intelligence] more closely with our product roadmap,’ since clients are showing increased interest in AI technology. ‘I am delighted that we have continued to drive the business forwards, maintaining a high delivery cadence while evolving our product in line with our roadmap,’ said Chief Executive Officer Andrew Denton. ‘The marketing of Alfa Systems 6 has received strong positive reactions from customers.’ Alfa added that it currently has 12 prospects in its late stage pipeline, and has ‘just signed full contract packs’ for the European business of a major US automotive manufacturer, with another two contracts nearly ready for signing. Overall, Alfa said its expectations for 2023 remain unchanged. It anticipates decreased Software revenue year-on-year, and ‘strong growth’ in Subscription and more modest growth in Services. ‘Our pipeline remains as strong as I have ever seen it, and I am excited to have welcomed yet another prestigious global automotive brand into the Alfa family,’ Denton commented. ‘The board remains confident in its expectations for the full year and in our prospects beyond that.’ Shares in Alfa were down 0.7% at 149.00 pence in London on Tuesday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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