The contract extension, which was included in the marketing software specialist’s results for the first six months of 2020, is expected to contribute around US$1.5mln in revenues over a five year period and will also add to the firm’s recurring revenue base.
Non-executive chairman Richard Day said the company will “continue to develop new and innovative products” and it remains focused on increasing its annual recurring revenue, which in its outlook statement was reported as US$5mln for the full year, including US$2.3mln for the first half.
Pelatro also reported that its 2020 pipeline stands at US$8mln, of which US$4mln is from existing customers for various new modules and products.
The company also said it anticipates “significant weighting of revenue towards the second half”.
“We have had a good start to the second half and we have a strong pipeline from which we expect to be able to deliver revenue in line with expectations on the basis of license sales. However, we will continue to prefer gain share and managed service contracts where possible which give significantly higher returns to Pelatro over the contract length”, Day said in a statement.
Looking to the numbers for the first half, Pelatro reported adjusted earnings (EBITDA) of US$0.66mln compared to US$0.81mln in the prior year, while revenues stood at US$2.29mln, down slightly on the previous year’s figure of US$2.71mln.
Shares in Pelatro were 2.7% lower at 36p in early deals on Tuesday.