StatPro has announced a useful extension to a contract with an existing customer – a total of €1.2m over three years from a Revolution Delta client. The news does not cause us to revisit our estimates, but provides a useful boost to forecast security, and demonstrates both client satisfaction and the positive tailwind of ongoing regulatory change. We look forward to hearing more around the time of the AGM later in May.
The RNS describes a three-year deal with an existing Revolution Delta client based in Europe, with a minimum value of €1.2m over that timeframe. The customer, in addition to their existing Delta usage, will be adding a new module for work relating to the new EU Money Market Regulations – which requires certain data to be reported directly to the regulator.
This win shows that existing fixed income clients of the acquired Delta product remain loyal to the platform, and they are comfortable to move forward, commit to multi-year relationships, and add additional functionality. We note StatPro’s previous comments around ease of migration over time of the Delta client base onto Revolution, and highlight the fact that the group also announced a £2m+ Revolution Delta renewal from a British client in January 2019. It appears that the Delta client base remains enthusiastic about the product roadmap and the advantages over time of the Revolution platform.
We make no changes to our estimates at this time – it is relatively early in StatPro’s financial (and calendar) year, although clearly the news is positive and helps to reduce forecast risk.
Overall, today’s news demonstrates a number of individually-modest aspects of the business – solidity in the Delta client base, ability to up-sell new modules into this base, and the positive tailwind of regulatory change. On the back of other recent wins and contract news, we believe this announcement will be well received.