Spin-Off and Investment Preparation Marked 2022 for Data Privacy Manager
Foto: Dražen Tomić / Tomich Productions
Last year was marked by the spin-off of the Data Privacy Manager from Poslovna inteligencija into the new company Legit Software and once an internal startup became an independent company, Dražen Oreščanin of Legit Software points out for ICTbusiness.biz and adds that during the last year the annual recurring revenue (ARR) grew by 400 percent, but most of that subscription revenue will be recognized as revenue in the following year because subscription revenue is accrued by month.
In 2023, we certainly expect the finalization of our first investment round, which will enable us to further grow and invest in product development, we believe during the Q1, Oreščanin points out.
How do you evaluate the past business year?
This business year was very challenging. We have made two big changes in our business this year. The first is the spin-off of the entire team working on the development, commercialization and implementation of Data Privacy Manager from Poslovna inteligencija to the new company Legit Software. Another big change is that from the beginning of this year, it is possible for new users to use DPM exclusively in SaaS mode, i.e. with subscription.
Ultimately, our annual recurring revenue (ARR) grew 400% over the year, but most of that subscription revenue will be recognized as revenue in the following year because subscription revenue is accrued by month. Due to investments in development, we made a small loss in 2022.
Spin-off was the initiator of some new business trends...
Well, the year was certainly marked by participation in two accelerator programs - InnovX BCR in Romania, in which we were eventually winners at Demo Day, and Cyber Runway Scale in London. Those two programs opened a lot of doors for us with potential investors and users.
Regarding product development, in 2022 we introduced a new module for data discovery and classification that is based on machine learning and can find and classify personal data in structured and unstructured sources, regardless of language and script (Latin, Cyrillic, Chinese, Arabic, Indian script...)
Regarding projects with new customers, I would certainly highlight the project of global consent management for clinical trials for one of the world's largest biomedical companies, which opens up a lot of opportunities for us in the future.
What do you expect from this year?
In 2023, we certainly expect the closing of our first investment round, which will enable us to further grow and invest in product development, we believe during Q1. Of course, we also expect revenue and ARR growth, especially in Romania and Great Britain, where we have increased our presence in 2022, and especially in the pharmaceutical and financial industries, which are highly regulated and are early adopters of new regulatory technologies