Intellinetics achieves 20.5% revenue growth in 2023
OHIO, UNITED STATES — Digital transformation solutions provider Intellinetics announced a significant increase in its full-year revenues for 2023, marking a year of substantial growth for the company.
The company’s strategic focus on expanding its Software as a Service (SaaS) offerings has yielded a remarkable 20.5% increase in full-year revenue, underscoring a year of robust growth and operational success.
Annual Financial Highlights
The year 2023 marked a significant milestone for Intellinetics, with total revenue witnessing a 20.5% increase over the previous year.
The company’s focus on SaaS offerings, particularly the commercial launch of the IntelliCloud Payables Automation System (IPAS), played a pivotal role in this growth. SaaS revenue surged by 27.8%, and professional services revenue saw a 24.6% increase.
The company’s net income for the year was an impressive $519,266, or $0.13 per basic and $0.11 per fully diluted share, a substantial improvement from the previous year’s net income of $24,027.
Adjusted EBITDA for the year also saw a healthy increase, rising by 13.7% to $2,744,649.
Q4 Financial Performance
The fourth quarter of 2023 showcased a solid 3.8% increase in total revenue compared to the same period in 2022, with all growth being organic.
Notably, the SaaS segment saw an 8.8% rise, while professional services revenue grew by 4.7%.
Despite these positive trends, the quarter’s net income stood at $61,638, translating to $0.02 per basic and $0.01 per fully diluted share. This represents a decrease from the net income of $200,784 reported in the fourth quarter of the previous year.
Adjusted EBITDA for the quarter improved by 12.5%, reaching $754,375.
Increasingly profitable business
Intellinetics President and CEO James DeSocio expressed his enthusiasm about the year’s achievements, stating, “This was a milestone year for Intellinetics, as we expanded our base of recurring SaaS revenue, making our business more predictable and increasingly profitable.”
He highlighted the company’s confidence in the IPAS offering, which is anticipated to significantly contribute to the company’s future success by adding another stream of SaaS revenue.
Projecting continued growth in 2024
Intellinetics aims for continued growth in fiscal year 2024, with management reiterating expectations for increased revenues and EBITDA.
The company is optimistic about the potential of its IPAS offering, which is expected to more than double its SaaS revenue in the next four to five years. DeSocio emphasized the company’s commitment to investing in the product to ensure rapid adoption and customer satisfaction.
The firm also revealed its plans to prepay $500,000 of its long-term debt, aiming to achieve a net debt-free status by the end of 2024, further solidifying its financial foundation.
