STREAMWIDE : _ HY 2023 RESULTS

POSITIVE H1 2023 RESULTS

OPERATING MARGINS UP

_

H1 REVENUE: €8.4m (up 3%)

EBITDA: €4.6m (up 21%)

EBIT: €1.6m (up 44%)

NET INCOME: €1.2m (up 15%)

NET CASH: €6.7m

_

STREAMWIDE (FR0010528059 - ALSTW - eligible for the French PEA-PME), the

expert in critical business and communications software solutions, today

announces positive first half results and strong growth compared to the first

half of 2022. The increase in first half revenue, combined with the tight

controlling of costs, primarily staff costs, resulted in increases of €0.8 million in

EBITDA (up 21%) and €0.5 million in EBIT (up 44%). This confirms

STREAMWIDE's buoyant positioning and its sound financial structure, capable

of absorbing cyclical fluctuations, enabling it to generate a high level of

profitability.

SUMMARY IFRS INCOME STATEMENT (**)

in K€

HY

%Rev

HY

%Rev

Var.

Var.

2023

2022

(K€)

(%)

Revenues "Platforms"

5 568

66%

5 372

66%

196

4%

Revenues "Legacy"

2 824

34%

2 773

34%

51

2%

TOTAL REVENUES

8 392

8 145

247

3%

Payroll expenses

-3 105

37%

-3 490

43%

384

-11%

G&A and external expenses

-1 182 14%

-1 248

15%

66

-5%

Other expenses / products

476

-6%

392

-5%

84

21%

TOTAL EXPENSES before

-3 811

4 346

534

-12%

Amortisation

EBITDA (*)

4 581

55%

3 799

47%

781

21%

Amortisation

-2 959

-2 677

-282

11%

EBIT (**)

1 622

19%

1 123

14%

499

44%

Other ope. expenses / products

-

-

-

Financial expenses / products

-143

309

-452

Fiscal expenses / products

-282

-392

110

NET RESULTS

1 197

14%

1 040

13%

157

15%

_

RETURN OF ROBUST OPERATING MARGINS AGAINST A BACKDROP OF

STABLE AND SUSTAINED INVESTMENT

STREAMWIDE recorded revenue of €8.4 million in the first half of 2023, up 3%.

The new team on mission and team on the run critical business and

communications platforms, for which revenue rose by 4% to €5.6 million in the

first half of 2023, still represent the Group's main revenue source (66%) and will

be major growth drivers over the coming years. As previously indicated, the

mass roll-out of the PCSTORM project is currently underway, with the

forthcoming deployment of the largest MCPTT platform in the world in terms

of simultaneous end-users.

o EBITDA: €4.6m

After a first half 2022 marked by non-recurring staff costs, the second half of

2022 saw the satisfactory reorganisation of technical teams. The first half of

2023 continued in the same vein, with a €0.4 million net decrease in payroll

compared to the first half of 2022, representing 37% of first half revenue

compared to 43% in H1 2022.

Before capitalisation of staff costs linked to product development (€2.8 million,

down from €2.7 million at 30 June 2022), first half payroll amounted to €5.9

million, down €0.3 million, mainly reflecting change in headcount: the Group

had 193 employees at the end of June 2023 (unchanged from the end of

December 2022), down from 205 at the end of June 2022.

With regard to external expenses, the Group continues to efficiently control its

costs, which dropped €0.1 million, with particular attention to subcontracting

expenses, professional fees and hiring costs.

Excluding depreciation and amortisation and after IFRS 16 restatement of lease

expenses (additional expenses of €0.4 million compared to €0.3 million a year

earlier), operating expenses amounted to €3.8 million in H1 2023, a significant

reduction of €0.5 million from €4.3 million in H1 2022. Taking into account the

€0.2 million increase in first half revenue, the operating margin rose to 55% (up

€0.8 million), compared to 47% in H1 2022 and 55% for the previous full year.

After €0.1 million of net financial expense, reflecting adverse movements in the

USD/EUR exchange rate during the first half and the financial costs associated

with the new loans taken out in March 2023, and a net tax loss of €0.3 million

impacted by the net deferred tax liability on capitalised development costs,

with no cash impact, the Group reported net income of €1.2 million, a €0.2

million increase on H1 2022 (up 15%).

_

INCREASED FREE CASH FLOW AND ROBUST FINANCIAL STRUCTURE

The Group's financial structure remained strong at 30 June 2023 with

shareholders' equity at €20.5 million and a healthy net cash balance of €6.7

million (excluding lease liabilities). The balance sheet total was €44.8 million,

up from €39.5 million at 31 December 2022 (see appendix below).

Gross cash and cash equivalents increased by €5 million to €16.4 million at 30

June 2023. After taking into account borrowings (€9.7 million) and excluding

lease liabilities (€2.8 million, compared to €2.9 million at 31 December 2022),

net cash came to €6.7 million, compared to €8.5 million at 31 December 2022.

Operating cash flow amounted to €3.1 million, posting a slight decline

attributable mainly to the €0.8 million decrease in working capital over the

period, while recurring capital expenditure on product development remained

high at €3.2 million (see appendix below). Note that the receivable relating to the

Research Tax Credit for 2022 (€1.1 million) is due in the second half, whereas a

€1 million refund was recorded in the first half of 2022. Lastly, cash flows from

financing activities were positive at €5.3 million, following (i) changes in

borrowings (up €7 million), taking into account new loans taken out in March

2023 totalling €7.5 million and repayments of €0.5 million during the period,

and (ii) net buybacks of treasury shares (€1.4 million outflow), prior to their

cancellation at the end of June 2023.

_

OUTLOOK: PROVEN TECHNOLOGY AND DIVERSIFICATION OF REVENUE

SOURCES

As announced in the H1 2023 revenue release, the level of full-year 2023

revenue currently anticipated is satisfactory, but remains correlated with the

launch schedules of the various French and European ministerial projects. In

particular, the Italian project won by the Group several months ago is set to

enter its first operational phase by the end of the year. The impact in terms of

revenue could therefore vary widely as of the fourth quarter of 2023. Despite

this uncertainty, revenue is expected to grow by at least as much over the full

year as it did in the first half of 2023. With the revenue base often more

favourable in the second half, and boosted by a relatively stable cost structure,

the impact on operating margin and full-year earnings should therefore be

positive.