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Fenergo Posts 21% Growth in 2019

5th December 2019Fenergo has delivered solid results for the year ending March 31st, 2019, including a 21% jump in revenue from EUR 57.8m to EUR 70.1m.

The results were boosted by a great performance in key markets such as Japan, North America,  France and the UK. The geographic expansion and entry into new markets including commercial, business and retail banking and asset and wealth management are drivers of the increase in revenue. In the past year Fenergo added key global customers to its roster of over 75 clients including ANZ, PNC, Banc of California, National Australia Bank, Canadian Imperial Bank of Commerce, Anglo Gulf Trading Bank, Royal Bank of Canada, First Abu Dhabi Bank, Tricor, Exos Financial and Mizuho.

During the fiscal year Fenergo doubled its spend on research and development to almost EUR 20m. With that investment in research and development, headcount increased by 44% with appointments made in all 14 offices around the globe. The investment in research and development also culminated in the launch of several client lifecycle management (CLM) software innovations including Hierarchy Manager, Digital Configuration Studio, Rules as a Service (RaaS) and the Fenergo Salesforce Integration App.

The increase in spending on product development and innovation in the year ending 31 March 2019 gave rise to an operating loss for the year of EUR 5.4m compared to an operating profit in the year prior.

Speaking about the results, Eimer McGovern, Chief Financial Officer of Fenergo, said:

“Our commitment to research and development and hiring has helped the business grow significantly. This allows us to remain best in class and extend our global footprint. We will continue to build out our global go-to-market organisation and expect further revenue growth next year.”

Peter Sobiloff, Managing Director, Insight Partners, a Fenergo shareholder, said:

“We are focused on building scalable growth-focused software companies. Since our investment in 2015, Fenergo has performed exceptionally well in line with our investment criteria and we look forward to continuing our excellent working relationship.”

Eimer McGovern, Chief Financial Officer, Fenergo, added:

“Every financial institution in the world is striving to truly transform the digital client experience. Fenergo is fast becoming the industry go-to for the world’s largest financial institutions seeking to address this challenge while ensuring regulatory certainty.”

Fenergo also completed a share buyback of EUR 106.3m in September of 2018. These results do not take into account EUR 66m in funding from DXC Technology (NYSE:DXC) in June 2019.