Sales boost for ‘unicorn’ Matillion, but continued investment sees losses double

Matthew Scullion

Manchester-based data productivity provider, Matillion, has racked up double the losses it made last year, its latest filing at Companies House reveals.

The business was founded in 2011 by Matthew Scullion and Ed Thompson and is deemed a ‘unicorn business’, with a value of at least $1bn.

The YFM Equity Partners-backed group recently cut the ribbon on its new HQ in the heart of Manchester, a two-story site at Two New Bailey, which becomes its first engineering-focused centre and European HQ, alongside its sister HQ in Denver, Colarado.

Accounts for the year to January 31, 2023, show that it achieved turnover of $84.040m, up from $57.263m the previous year. However, its pre-tax loss widened from $32.583m in 2022 to $64.442m.

Cash at year end decreased by 32% from $214.5m to $144.9m.

However, the directors hailed “another successful period of turnover growth”.

The increased losses were driven by continued investment in the business.

Research and development expenses in the year were $33.7m, up from $22.1m in the 13 month period ended January 31, 2022.

The latest year also saw a significant expansion of the company’s Go-to-Market activities with the addition of new leadership in sales and marketing functions.

Sales and marketing expenses in the reporting period were $74.8m, compared with $43.8m the previous year.

However, the company said it considers that its cash reserves are sufficient to meet its short and long term obligations.

It said it has taken steps to diversify its cash holdings following the difficulties experienced by Silicon Valley Bank, in the US, previously one of the group’s principal banking partners.

San Francisco-based Silicon Valley Bank was popular with the tech industry, but in March this year, after central bank-endorsed interest rate hikes during the 2021-2023 inflation surge, there was a bank run on its deposits, which led to its collapse and seizure by the California Department of Financial Protection and Innovation (DFPI), its regulator.

The directors’ statement in Matillion’s accounts said: “The group continues to invest heavily in its internal product development in support of its strategy.

“New releases every 6-8 weeks increase the functionality of the software and new product releases supporting either existing cloud data platform partners on new cloud infrastructure, or new cloud data platform partners expand the addressable market and increase the choice for potential customers.”

It added: “As a rapidly expanding, but still loss-making business, continued timely access to debt and capital markets will be essential to the business.

“This risk is mitigated by remaining a leader in a rapidly growing sector, and by maintaining strong relationships with both current and potential future investors.”