StatPro has announced that a Singapore-based asset manager (and existing client) has signed a $1m, two and a half year contract extension and consulting agreement to migrate from StatPro Seven to the Revolution platform. This is further evidence of the expansion of contracts which can take place as clients migrate to Revolution, and follows a number of such contract extensions and expansions announced during 2017. The deal further underpins the outlook for the Group’s annualised recurring revenue (ARR) which was also boosted by the recent acquisition of Delta; over four-fifths of StatPro’s software ARR now comes from cloud services. While Revolution is growing, StatPro Seven continues to show resilience - we recall a contract extension announced earlier this year and the improved demand for StatPro Seven’s Composites module highlighted in the recent interim results. While leaving estimates unchanged at present, we note the additional positive news.
So far in 2017, StatPro has made several announcements of extended and expanded contracts with existing customers Those include FundBPO Pty Ltd, one of Australia's leading independent fund administrators (extension and expansion of Revolution contract), a global South African asset manager (conversion to Revolution) a large European asset manager (conversion to Revolution) and a large Canadian wealth business (StatPro Seven extension).
StatPro has previously said that it will be able to convert fully 100 clients using the StatPro Data Hub and SPA modules of StatPro Seven to StatPro Revolution. The initial focus has been on migrating Performance and Risk clients to StatPro Revolution – a process which is expected to be largely completed over the next two years. The recent interims confirmed that StatPro Revolution continued to show good underlying growth in revenues in the first half of 2017.
The last few results announcements have shown that StatPro Seven revenues are now reflecting that migration of performance and risk clients to Revolution. However, despite the migration programme, StatPro Seven continues to show resilience as we saw in the recent interim results - with the Composites module in particular benefitting from clients’ compliance requirements.