SaaS contract wins boost Citadel Group's revenue, profits

Canberra-based Citadel Group has posted revenue and profit growth on the back of its software-as-a-service business, which has brought in a number of contracts in the past six months.

The company reported revenues of $49 million for the half-year ended 31 December 2018, up 5.5 percent from $46 million compared to the same period last year. The growth was buoyed by $16.8 million in SaaS revenues, up 39 percent from last year.

Net profit after tax was also up 5.4 percent to $6.7 million, compared to last year’s $6.4 million.

“It has been another strong half year performance, as we delivered a record level of recurring revenues from highly scalable SaaS solutions,” chief executive Darren Stanley said.

“We successfully transitioned our sales focus towards scalable solutions that provide annuity revenue streams, and we increased investment in SaaS platform development to drive further long-term sustainable growth.”

Stanley added that Citadel’s customer base continued to expand across its key verticals as it scales out its SaaS solutions, and now has more than 265,000 users across its software and managed solutions businesses.

Contract wins during the period included multi-year government contracts, implementations of its CHARM oncology implementations in four hospitals, new international and local Citadel-IX customers and a two-year extension to provide managed services to Monash University.

“We have transformed Citadel from a business providing specialist advisory, training and technology services to government departments, to an innovative Australian technology company providing a comprehensive suite of enterprise information management SaaS solutions being scaled to both government and private sectors,” Stanley added.

Looking ahead, Citadel will look to further increase its share in the SaaS solutions market, and will look to keep developing solutions that can hyper-scale and provide annuity style revenue.

“We are confident of the outlook for the remainder of FY19 and beyond,” Stanley said.

“In addition to our largest ever weighted pipeline that stands at $132 million, our SaaS recurring revenue model will allow us to grow and scale through shorter sales cycles, reduce client concentration and deliver larger numbers of new clients.”