Crimson Tide swings to positive earnings in first half

Crimson Tide reported a 30.9% improvement in revenue in its first half on Monday, to £3m, while annual recurring revenue jumped 35.1% year-on-year to £5.9m.

The AIM-traded firm said its gross margin for the six months ended 30 June came in at 84.3%, slightly down from 84.5% in the first half of 2022.

Its EBITDA meanwhile swung from a loss of £0.3m in the first six months of 2022 to a profit of £0.1m in the first half of this year.

From an operational perspective, the company said it maintained a consistent growth trajectory in core recurring revenue.

Looking ahead, Crimson Tide said it was making continued investments in product development and expanding its foothold in the US market.

Additionally, it said it had made notable progress in its partnership strategy, further solidifying its growth prospects.

“Progress in the first half of the year has been positive,” said founder and chairman Barrie Whipp.

“We have experienced strong revenue growth, and we have returned to EBITDA profitability as planned.

“Annual recurring revenue has increased significantly, and our pipeline has some very exciting opportunities.”

At 1300 BST, shares in Crimson Tide were down 22.68% at 1.7p.

Reporting by Josh White for Sharecast.com.