The Glasgow-based firm, which is behind a cloud-based platform to record and share the results of chemistry experiments, has announced in a trading update that after nine months of the financial year and having now signed a “material” multi-year database license agreement with science and technology company Merck, it expects revenue for the full year to be “no less than” £1.5 million, compared to £1m in the prior 12-month period.
It added that it has inked three strategically important multi-year collaborations during the current financial year, which could boost income from both new and existing customers, while it continues to see a strengthening of its sales pipeline following a “strong” first half.
The Aim-quoted business added that, as stated in its first-half results, when it reported higher revenues and widened losses but expected the second half to be stronger, it is investing in product enhancements, strengthening its team, pursuing machine learning and artificial intelligence (AI)-based research and development creating new intellectual property, while it held cash balances of £700,000 at September 30.
Additionally, ChemIntelligence – which DeepMatter acquired in June of this year in a deal worth up to £420,000 – has been selected by Bayer CropScience, billed as the world’s-second largest agrochemical company, to join Bayer’s LifeHub Lyon in La Dargoire Research Centre, a move expected to accelerate the safe design and more effective development of chemical crop protection products.
DeepMatter chief executive Mark Warne said: “After a solid H1, we are now on course to increase our year-on-year revenues by some 50 per cent, and importantly are seeing increasing customer interest and the potential for recurring royalty revenues. These revenues which are recognised over the life of contracts provide us with growing visibility.
“With our strengthening relations with Merck and other international blue-chip organisations plus our investment programme, we are leading the digitalisation of chemistry space and driving the market shift. Our vision is to provide the digital data that enables all molecules to be made efficiently and safely as well as sustainably.”