DeepVerge Shares Rise As 2022 Revenue Jumps — Slightly Below Expectations

DeepVerge (LON: DVRG) said in a release Monday morning that revenue for 2022 came in below market expectations.

The company told investors that unaudited revenues for 2022 were around £17.2 million, although it would have achieved revenue of £18 million, but a significant element of its recently signed contracts mean they will now fall for delivery this year.

DeepVerge shares have risen more than 9% on the news.

Even so, the number represents a significant increase year-over-year, with 2021 audited revenue being £9.3 million. In addition, it said it has experienced supply chain issues leading to some delays into 2023.

License revenues are featured strongly as a driver of DeepVerge revenue as it moves from small and medium ticket equipment sales to larger £1 million or more data and AI-focused sales through partners.

Furthermore, the company said its Modern Water business unit has been focused on building high-value solutions for monitoring water and wastewater utilising advanced software and data automation. Meanwhile, it is also moving its Labskin business further into data and AI, with Skin Trust Club being a personalised skincare platform for partners and building an extensive skin microbiome database for corporate customers.

“These moves are in parallel with a refocusing of the business on tier-one partnerships that sell and support DeepVerge solutions in their core markets where they are dominant or major participants,' DeepVerge said in its statement.

As a result of the moves, the company said it has won significant contracts and has an order book with a wide range of government institutions in multiple territories.

“The accelerated group restructuring announced on 22 November 2022 has created separate businesses with clear domain focus, with the personnel and resources necessary to support the growth being experienced and anticipated,” they added.

“The restructuring also brought certain key logistical processes in-house, better to serve customers and partners and to protect against worldwide supply chain shocks. As well as focus, this restructuring is also expected to deliver considerable cost savings in 2023 of up to £2m.”