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Formpipe Software
Quarterly Report • Apr 25, 2024
3159_10-q_2024-04-25_2cc46f62-85bd-4a46-b1c9-8cf4fec8434a.pdf
Quarterly Report
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January 1 – March 31, 2024
| 2024 | 2023 | Δ | |
|---|---|---|---|
| Net sales of SEK | 125 m | (128 m) | -2% |
| Recurring revenues of SEK | 102m | (88 m) | 15% |
| which corresponds to % of net sales | 81 % | (69 %) | |
| EBITDA SEK | 21 m | (23 m) | -9% |
| EBITDA margin | 17 % | (18 %) | |
| EBIT | 4 m | (7 m) | -37% |
| EBIT margin | 4 % | (6 %) | |
| Net profit SEK | 2 m | (5 m) | -64% |
| Net profit margin | 2 % | (4 %) | |
| EPS before dilution SEK | 0,03 | (0.09) | -64% |
| Cash flow from operating activities SEK | 30 m | (17 m) | 75% |
| ACV SEK | 6 m | (11 m) | -40% |
| ARR SEK | 426 m | (383 m) | 11% |
ACV SEK 6 m (11 m) ARR SEK 426 m (383 m)
"Continued positive profitability trend" "Good development in Private with 11% EBITmargin"
Christian Sundin, CEO Formpipe Magnus Svenningson, CEO Formpipe
Income statement - summary
| Jan-Mar | |||
|---|---|---|---|
| (SEK Million) | 2024 | 2023 | |
| Net sales | 125,3 | 127,6 | |
| whereof recurring revenue | 101,9 | 88,2 | |
| EBITDA | 21,3 | 23,3 | |
| Margin, % | 17,0% | 18,3% | |
| EBIT | 4,5 | 7,1 | |
| Margin, % | 3,6% | 5,5% |
This is a translation of the original Swedish version. In the event of any discrepancies between the two versions, the original Swedish version shall take precedence. The information was submitted for publication, at 08.15 CET 25 April 2024.
Good development in Private, lower delivery revenue in Public.
We started the year with good development in the private sector business area, but with weaker development in the public sector business area. This results in sales for the Group of SEK 125 (128) million in the first quarter. EBIT amounts to SEK 4 (7) million, corresponding to a margin of 4% (6%). Recurring revenues amount to SEK 102 (88) million, and are in line with our plan of growth in SaaS, where sales increased by 36% to SEK 38 (28) million. ACV is SEK 6 (11) million, with the deviation from the previous year originating from the public sector. The measures we want to implement, which were communicated in the fourth quarter, have been initiated and are expected to yield results towards the end of the year.
Public: The formation of one business area
This is the first quarter for our new management and organization in a joint business area for the public sector in Denmark and Sweden. A great deal of internal and structural efforts have taken up time. We have taken great strides forward with our common internal structure with the aim of becoming more efficient. However, the main factor affecting the quarter was lower deliveries in our Danish consulting business. The new agreement with the Danish Agriculture Agency means lower delivery sales. The negative impact will continue in the coming quarters, which I have noted before, but we see great opportunities to develop the business over time. It partly depends on temporary peaks in product development on the TAS platform,which has meant fewer available consulting resources in those delivery projects.
Among the deals won during the quarter, I would like to highlight that Lund University has trusted us with a longterm contract extension for W3D3.
In total, sales in the public sector amounted to SEK 73 (79) million, while recurring revenues increased by 15% to SEK 55 (47) million. EBIT decreased to SEK 5 (13) million.
The new business area was created to enable us to be more efficient in prioritizing in our product portfolio and focus our resources and investments on development that creates the most attractive offering to the public sector with its high demands on efficiency, security, compliance with legislation and data sovereignty.
In March, we hosted our annual user event in Stockholm where we invite customers for inspiration and learning. This is a valuable dialogue for us as we gain significant insights into how our products are used and can be developed. It was a successful event with around 180 users gathered to exchange experiences on, among other things, open data (EU Directive 2019/1024) where Formpipe's products are at the forefront when it comes to reporting It is a good example of how Formpipe contributes to sustainable development, read more https://www.digg.se/kunskapoch-stod/oppna-och-delade-data.
Private: We are strengthening our offer
The good development of Lasernet and our business in the private sector continues. Net sales increased to SEK 52 (48) million, a growth of 9%, while recurring revenues increased by 15% to SEK 46 (40) million. EBIT strengthened to SEK 5 (0.5) million, giving a margin of 11% (1%), and demonstrating the good scalability of the business. ACV amounts to SEK 5 (4) million. This is an ok performance but we can deliver better than that.
The Banking business continues to develop well and we once again note a quarter of relatively high activity, where we signed agreements with six new banks globally. The weaker ACV trend is mainly attributable to the ERP business, where we did not reach the expected level.
We have started several initiatives to create even better conditions for long-term profitable growth within Private. A significant investment is our new product packaging of Lasernet for Dynamics, which will be offered in three tiers: Freemium, Professional and Enterprise. It provides higher scalability in our business model and should create more awareness in the market.
"With Freemium, Lasernet is accessible for all of Dynamics' installed base"
Magnus Svenningson, CEO Formpipe
Comments from the Group's CEO
Training of our sales representatives and partners has begun and we plan a launch in the third quarter. Lasernet Freemium, which has limited functionality, will be offered to existing Dynamics users in the Microsoft Marketplace. It will be a new way to reach large parts of Dynamics' installed base and an exciting method to explore for lead generation..
To strengthen our position in ERP, we signed an agreement after the end of the quarter to acquire the French company Dictymatec. It is a long-standing distributor and implementation partner for Lasernet in southern Europe. I am pleased to welcome the small and highly competent team with valuable knowledge and experience in Lasernet and output management. The acquisition is small of size, with turnover of about SEK 4 million, but strategically important as it gives us increased opportunities to target customers in France, Spain and Latin America and strengthens our ability to test our offering within the SAP/INFOR ecosystems.
I am confident that the activities we have initiated will help us pursue our business potential, accelerate our growth and strengthen Formpipe's market position. We will continue to simplify, focus and improve our operations within our business areas, Private and Public.
Magnus Svenningson, CEO Formpipe
Financial Information
Revenue
January – March 2024
Net sales for the period decreased by 2 % compared to previous year and totalled to SEK 125.3 million (127.6 million). Software revenue increased by 13 % from the previous year and totalled to SEK 103.2 million (91.1 million).
Total recurring revenue for the period increased by 15 % from the previous year and totalled to SEK 101.9 million (88.2 million), which is equivalent to 81 % of net sales (69 %). Exchange rate effects have affected net sales favourably by SEK 0.9 million in comparison with the previous year.
Revenue split, Jan - Mar 2024
Recurring revenue, rolling 12 m, mSEK
Annual recurring revenue (ARR), mSEK
Costs
January – March 2024
The operating costs for the period totalled to SEK 120.8 million (120.6 million). Personnel costs totalled to SEK 74.2 million (73.4 million). Selling expenses totalled to SEK 13.5 million (15.9 million). Other costs totalled to SEK 29.8 million (27.7 million). Exchange rate effects have increased expenses by SEK 1.0 million in comparison with the previous year.
Recurring revenues in relation to fixed operating costs, rolling 12 m, mSEK
Financial Information
Earnings
January – March 2024
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 21.3 million (23.3 million) with an EBITDA margin of 17.0 % (18.3 %). Operating profit (EBIT) totalled to SEK 4.5 million (7.1 million) with an operating margin of 3.6 % (5.5 %). Net profit totalled to SEK 1.8 million (4.9 million). Exchange rate effects have affected EBIT unfavourably by SEK 0.1 million in comparison with the previous year.
Sales and EBITDA margin, mSEK
Financial position and liquidity
Cash equivalents
Cash and cash equivalents at the end of the period amounted to SEK 54.6 million (5.7 million). The company's total bank overdraft facility amounts to SEK 50.0 million. At the end of the period it was not utilized (0.0 million). The total accessible funds therefore amount to SEK 104.6 million (55.7 million).
The group had interest-bearing debt at the end of the period totalling to SEK 36.5 million (39.1 million), whereof SEK 16.5 million (9.1 million) refers to lease debts according to IFRS 16.
The group's net cash position thereby totalled to SEK 18.1 million (-33.4 million), which corresponds to a net cash position of SEK 34.6 million (-24.3 million) excluding IFRS 16-related debt.
Deferred tax asset
By the end of the period the group's deferred tax assets attributable to accumulated losses amounted to SEK 3.4 million (SEK 3.9 million).
Equity
Equity at the end of the period amounted to SEK 498.1 million (453.0 million), which was equivalent to SEK 9.19 (8.36) per outstanding share at the end of the period. Changes in the value of the Swedish krona compared to other currencies have changed the value of the group's net assets in foreign currencies by SEK 16.9 million (6.2 million) from the end of the year.
Equity ratio
The equity ratio at the end of the period was 59 % (58 %).
Cash flow
Cash flow from operating activities
Cash flow from operating activities for the period January - March totalled to SEK 29.9 million (17.1 million).
Investments and acquisitions
Total investments for the period January – March amounted to SEK 14.8 million (13.4 million).
- Investments in intangible assets totalled to SEK 14.2 million (13.1 million) and refer to capitalized product development costs.
- Investments in tangible and financial assets totalled to SEK 0.6 million (0.3 million).
- Acquisitions of subsidiaries amounted to SEK 0.0 million (- million).
Financing
During the period January – March the company amortized SEK 2.5 million (2.5 million).
The existing bank overdraft facility totalling to SEK 50.0 million was not utilized at the end of the period (0.0 million). Leasing related liabilities amounted to SEK 16.5 million (9.1 million) at the end of the period. The group's interest-bearing debt at the end of the period was thereby SEK 36.5 million (39.1 million).
Data and information become more and more important for the financial development: it is the foundation for many new products and services, which leads to productivity and resource efficiency gains in all sectors of the economy. Being able to take advantage of the possibilities of digitalization has become one of the most important issues of our time. The benefits of being able to collect, process and present data are extensive.
Formpipe's products are used to create, store, distribute, automate, relocate, archive and manage information, data and metadata regarding e.g. scanned documents, e-mail, reports, records, business documents or information from other source systems. The goal is to be able to refine and analyze content from one or more sources, to thereby provide the right insights by the right people receiving relevant information when they need it. It is in the Content Services (previously Enterprise Content Management) market that Formpipe has grown to become a market leader in the public sector and a strong challenger in the private sector where we digitalize and streamline customer communication in sectors such as retail, finance and manufacturing.
The growth in the market is fuelled in large part by the organizational and corporate-wide need to streamline operations and meet legal requirements and regulations. To be able to get the value out of the collective amount of information at companies and organizations, applications and services are needed – in order to securely – collaborate, search, analyze, process and distribute data and content. Growth drivers tend to gain strength as the amount of data and information increases.
Gartner's forecast for the global market is an average annual growth (CAGR) of 10 percent in 2020-2024. The Content Services market is estimated to be USD1 11 billion in system revenue.
Transition to Software as a Service
An important part of the change of the Content Services market is also that the development is moving increasingly towards cloud-based solutions, where the customers pay for what is used and where costs for development, operations, maintenance, upgrade and support are included in the running agreement. The transition to SaaS is taking place very quickly now and Gartner estimates that the SaaS revenues will reach up to 60 percent of the total sales of software in 20242 .
This development is well in line with Formpipe's reality where growing numbers of the Company's customers choose to shift to Formpipe's cloud services for the standard products and with the Company's development of service modules that can process information both from Formpipe's existing systems and other systems.
Business areas
Private sector
In the private sector, the business revolves around the product Lasernet. Through a certified partner network, Formpipe addresses the global market for ERP and banking systems. The most common purchase of Lasernet and Formpipe's complementary offering Autoform DM takes place when implementing, or upgrading to, Microsoft Dynamics 365 in industries such as manufacturing, retail and utilities and Temenos Transact and Infinity in banking and finance. The partner network thus primarily consists of implementation partners of these systems and constitutes a sales and delivery channel for Formpipe's offering.
The growth of Formpipe's business in the private sector is based on being included in more and more of Microsoft's and Temenos' business and offering Lasernet and Autoform DM as SaaS. In the Dynamics market, this is done via a globally certified partner network and with Temenos through a strengthened partner relationship.
1 Enterprise Application Software Forecast Q420, Gartner, Inc. 2020
2 Market Trends: Cloud Shift — 2020 Through 2024, Gartner, Inc. 2020
Market
Public sector
Hundreds of authorities, municipalities, universities and state- and municipally owned companies today build their public administration around Formpipe's products. Based on Formpipe's market share for its platforms in Denmark and Sweden, the business is growing mainly through additional sales of add-ons to these, which are primarily co-created in customer projects. Customers' needs revolve around the requirements for a more efficient, innovative and data-driven business.
The focus for these add-ons is on business processes linked to record keeping, such as archiveproof and secure digital signatures or an application for collaboration on meeting documents for municipal politicians. In the Swedish public sector, Formpipe has a stable customer base in municipalities, regions and authorities.
In the Swedish public sector, up to SEK 45 billion is invested in IT every year.
The Swedish government's ambition is for state authorities, municipalities and regions to be the best in the world at using the opportunities of digitalisation to create an efficient public sector - a simpler everyday life for private individuals and companies, more jobs and increased welfare. Digital solutions and automation are an important component for meeting the growing welfare needs and at the same time increasing the service to the citizens.
Formpipe is also a leading supplier of digital government software in the Danish public sector. Digital solutions and automation create opportunities to meet the growing welfare needs and at the same time increase the service to the citizens.
January-March
Nothing to report.
Employees
The number of employees at the end of the reporting period totalled to 263 persons (284 persons).
Risks and uncertainty factors
The significant risk and uncertainty factors for the group and the parent company, which include business and financial risks, are described in the annual report for the last financial year. During the period there have been no other changes in the risk and uncertainty factors for the group and the parent company.
Transactions with related parties
No related party transactions have occurred during the period.
Accounting policies
The group's financial reports are prepared in accordance with International Financial Reporting Standards (IFRS) in the way in which they have been adopted by the European Union, the Swedish Annual Accounts Act, RFR 1 Additional Accounting Regulations for Groups issued by the Swedish Financial Reporting Board and in accordance with the regulations that the Stockholm Stock Exchange stipulates for companies listed on Nasdaq Stockholm. Preparing financial reports in accordance with IFRS requires that the company management makes accounting evaluations and estimates and makes assumptions that affect the application of the accounting policies and the reported values of assets, liabilities, income and costs. The actual result can differ from these estimates and evaluations. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The interim report covers pages 1-20 and the interim report on pages 1-9 is thus an integral part of this financial report. The most important accounting policies according to IFRS, which constitute the accounting standard for the preparation of this interim report, are stated in the company's most recently published annual report.
The financial reports of the parent company have been pre-pared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities issued by the Swedish Financial Reporting Board. The same accounting policies and methods of calculation have been applied in the interim report and in the most recent annual report.
About Formpipe
Formpipe Software AB (publ) is a Swedish software company in the field of Content Services (previously Enterprise Content Management, ECM). Several thousand customers in more than 60 countries currently entrust us and our services. Our marketleading position gives us clear competitive advantages in the development and sale of software for effective and valuable information services. The Company focuses on products for document and records management, automation of information-intensive business processes, e-archives, data quality and smart management of customer communication.
Formpipe was founded in 2004 and has offices in Sweden, Denmark, United Kingdom, USA and Germany. The Formpipe share is listed on Nasdaq Stockholm.
Calendar for financial information
| April 25, 2024 | AGM 2024 |
|---|---|
| July 12, 2024 | Interim report Jan-Jun |
| October 25, 2024 | Interim report Jan-Sep |
This interim report has not been subjected to review by the company's auditors.
The Annual Report is available on Formpipe's website, www.formpipe.com.
The Annual General Meeting is held at the head office at Sveavägen 168, on April 25, 2024.
Financial information
Can be ordered from the below contact details. All financial information is published on www.formpipe.com immediately after being made public.
Contact information
Magnus Svenningson, Managing Director Telephone: +46 739 639 700 E-mail: [email protected]
Stockholm April 25, 2024
Formpipe Software AB The Board of Directors and the Managing Director
Formpipe Software AB (publ) Swedish company reg. no.: 556668-6605 Sveavägen 168 | Box 231 31 | 104 35 Stockholm T: +46 8 555 290 60 | F: +46 8 555 290 99 [email protected] | www.formpipe.se
Consolidated income statement summary
| Jan-Mar | ||
|---|---|---|
| (SEK 000) | 2024 | 2023 |
| Net Sales | 125 299 | 127 635 |
| Sales expenses | -13 549 | -15 926 |
| Other costs | -29 779 | -27 661 |
| Personnel costs | -74 203 | -73 352 |
| Capitalized work for own account | 13 551 | 12 651 |
| Operating profit/loss before depreciation/amortization | ||
| and non-comparative items (EBITDA) | 21 319 | 23 348 |
| Items affecting comparability | - | - |
| Depreciation/amortization | -16 865 | -16 283 |
| Operating profit/loss (EBIT) | 4 454 | 7 065 |
| Financial income and expenses | -238 | -607 |
| Exchange rate differences | -2 689 | -1 434 |
| Tax | 243 | -168 |
| Net profit for the period | 1 769 | 4 855 |
| Of which the following relates to: | ||
| Parent company shareholders | 1 769 | 4 855 |
| Other comprehensive income | ||
| Translation differences | 16 884 | 6 154 |
| Other comprehensive income for the period, net after tax | 16 884 | 6 154 |
| Total comprehensive income for the period | 18 653 | 11 009 |
| Of which the following relates to: | ||
| Parent company shareholders | 18 653 | 11 009 |
| EBITDA margin, % | 17,0% | 18,3% |
| EBIT margin, % | 3,6% | 5,5% |
| Profit margin, % | 1,4% | 3,8% |
| Earnings per share attributable to the parent company's shareholders during the period (SEK per share) | ||
| - before dilution | 0,03 | 0,09 |
| - after dilution | 0,03 | 0,09 |
| Average no. of shares before dilution, in 000 | 54 218 | 54 218 |
| Average no. of shares after dilution, in 000 | 54 218 | 54 218 |
Consolidated balance sheet
| 31 Mar | |||
|---|---|---|---|
| (SEK 000) | 2024 | 2023 | 2023 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Capitalized expenditure | 170 911 | 160 145 | 166 722 |
| Goodwill | 454 813 | 445 928 | 441 319 |
| Other intangibel assets | 7 602 | 11 634 | 8 435 |
| Intangible assets | 633 326 | 617 707 | 616 476 |
| Tangible assets | |||
| Other equipment & furnitures | 23 137 | 16 842 | 22 209 |
| Tangibel assets | 23 137 | 16 842 | 22 209 |
| Financial assets | |||
| Other financial assets | 1 843 | 1 705 | 1 714 |
| Other non-current receivables | 1 148 | 2 233 | 1 428 |
| Financial assets | 2 992 | 3 939 | 3 142 |
| Non-current receivables | |||
| Deferred tax assets | 3 379 | 4 023 | 3 200 |
| Non-current receivables | 3 379 | 4 023 | 3 200 |
| Non-current assets | 662 833 | 642 511 | 645 027 |
| Current assets (excl. cash equivalents) | |||
| Current receivables | |||
| Trade receivables | 80 462 | 67 212 | 103 394 |
| Current tax assets | 7 980 | 20 628 | 10 071 |
| Other receivables | 5 | 48 | 42 |
| Prepaid costs and accrued income | 43 617 | 38 972 | 37 692 |
| 132 064 | 126 860 | 151 199 | |
| Cash equivalents | 54 569 | 5 709 | 39 740 |
| TOTAL ASSETS | 849 466 | 775 080 | 835 966 |
Consolidated balance sheet - continued
| (SEK 000) | 31 Mar | ||
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| EQUITY | |||
| Share capital | 5 422 | 5 422 | 5 422 |
| Other paid-in capital | 229 178 | 229 181 | 229 178 |
| Revaluation reserves | 66 873 | 55 627 | 49 989 |
| Retained earnings including profit for the year | 196 623 | 162 798 | 194 854 |
| Equity | 498 096 | 453 028 | 479 443 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Liabilities to credit institutions | 10 000 | 20 000 | 12 500 |
| Deferred tax liabilities | 41 470 | 36 384 | 40 502 |
| Non-current leasing liabilities | 8 552 | 4 332 | 8 053 |
| Non-current liabilities | 60 021 | 60 716 | 61 055 |
| Current liabilities | |||
| Liabilities to credit institutions | 10 000 | 10 000 | 10 000 |
| Current leasing liabilities | 7 955 | 4 815 | 7 282 |
| Trade liabilities | 29 401 | 21 383 | 36 672 |
| Current tax liabilities | - | -19 | - |
| Other liabilities | 9 346 | 9 914 | 11 763 |
| Accrued expenses and deferred income | 234 645 | 215 244 | 229 752 |
| Current liabilities | 291 348 | 261 336 | 295 468 |
| Liabilities | 351 369 | 322 052 | 356 523 |
| TOTAL EQUITY AND LIABILITIES | 849 466 | 775 080 | 835 966 |
| Net interest-bearing debt (-) / cash (+) | 18 062 | -33 438 | 1 906 |
Changes in consolidated equity
| Equity attributable to the parent company's shareholders | ||||||||
|---|---|---|---|---|---|---|---|---|
| (SEK 000) | Share capital |
Other contributed capital |
Other reserves |
Profit/loss brought forward |
Total 442 019 |
|||
| Balance at January 1, 2023 | 5 422 | 229 181 | 49 473 | 157 942 | ||||
| Comprehensive income | ||||||||
| Net profit for the period | - | - | - | 4 855 | 4 855 | |||
| Other comprehensive income items | - | - | 6 154 | - | 6 154 | |||
| Total comprehensive income | - | - | 6 154 | 4 855 | 11 009 | |||
| Balance at March 31, 2023 | 5 422 | 229 181 | 55 627 | 162 798 | 453 028 | |||
| Balance at January 1, 2024 | 5 422 | 229 178 | 49 989 | 194 854 | 479 443 | |||
| Comprehensive income | ||||||||
| Net profit for the period | - | - | - | 1 769 | 1 769 | |||
| Other comprehensive income items | - | - | 16 884 | - | 16 884 | |||
| Total comprehensive income | - | - | 16 884 | 1 769 | 18 653 | |||
| Balance at March 31, 2023 | 5 422 | 229 178 | 66 873 | 196 623 | 498 096 |
Cash flow statement summary
| Jan-Mar | ||||
|---|---|---|---|---|
| (SEK 000) | 2024 | 2023 | ||
| Cash flow from operating activities | ||||
| Operating profit/loss (EBIT) | 4 454 | 7 065 | ||
| Items not affecting cash flow | ||||
| - Depreciation | 16 865 | 16 283 | ||
| - Capital gain/loss from fixed assets | 10 | -52 | ||
| - Unrealized exchange impact operating activities | 72 | -17 | ||
| - Other items | 82 | -69 | ||
| Other items affecting liquidity | ||||
| Interest revenue | 426 | 48 | ||
| Interest expense | -708 | -644 | ||
| Realized currency effects | -2 876 | -1 451 | ||
| Income tax paid (-) / reimbursed (+) | 2 667 | -4 406 | ||
| Cash flow from operating activities | 20 909 | 16 826 | ||
| before working capital changes (* | ||||
| Increase (-) / decrease (+) work in progress | -1 129 | 486 | ||
| Increase (-) / decrease (+) trade receivables | 25 843 | 17 047 | ||
| Increase (-) / decrease (+) other current receivables | -3 512 | -1 195 | ||
| Increase (-) / decrease (+) trade payables | -7 876 | -13 512 | ||
| Increase (-) / decrease (+) current liabillities | -4 295 | -2 588 | ||
| Cash flow from changes in working capital (* | 9 031 | 237 | ||
| Cash flow from operating activities (* | 29 940 | 17 063 | ||
| Cash flow from investing activities | ||||
| Investment in intangible assets | -14 177 | -13 090 | ||
| Investment in tangible assets | -636 | -301 | ||
| Investment in financial assets | 221 | 212 | ||
| Cash flow from investing activities | -14 592 | -13 179 | ||
| Cash flow from financing activities | ||||
| Repayment of loans | -2 500 | -2 500 | ||
| Repayment of leasing liabillities | -1 763 | -2 042 | ||
| Cash flow from financing activities (* | -4 263 | -4 542 | ||
| Chas flow for the period | 11 084 | -658 | ||
| Currency translation differences for cash | 3 745 | 1 586 | ||
| Cash and cash equivalent at the beginning of the period | 39 740 | 4 781 | ||
| Cash and cash equivalent at the end of the period | 54 569 | 5 709 |
(* 2023 is adjusted to disclose IFRS16 transactions
Financial Tables
8 quarters in summary
| (SEK 000) | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|
| SaaS | 22 192 | 24 481 | 26 254 | 28 113 | 32 135 | 33 679 | 36 062 | 38 373 |
| Support and maintenance | 56 175 | 56 424 | 58 212 | 60 115 | 62 339 | 65 454 | 64 888 | 63 489 |
| Recurring revenue | 78 368 | 80 905 | 84 467 | 88 228 | 94 474 | 99 133 | 100 951 | 101 861 |
| License | 2 437 | 3 426 | 7 012 | 2 836 | 7 924 | 1 929 | 6 070 | 1 318 |
| Software revenues | 80 805 | 84 330 | 91 479 | 91 064 | 102 398 | 101 062 | 107 021 | 103 180 |
| Deliveries | 38 775 | 33 064 | 36 298 | 36 571 | 35 086 | 22 754 | 29 200 | 22 120 |
| Net sales | 119 580 | 117 395 | 127 777 | 127 635 | 137 484 | 123 816 | 136 221 | 125 299 |
| Sales expenses | -15 760 | -16 869 | -18 606 | -15 926 | -16 340 | -14 241 | -15 413 | -13 549 |
| Other costs | -30 680 | -28 089 | -31 211 | -27 661 | -30 480 | -28 500 | -32 569 | -29 779 |
| Personnel costs | -71 546 | -64 971 | -73 690 | -73 352 | -75 321 | -65 304 | -72 319 | -74 203 |
| Capitalized development costs | 13 085 | 13 153 | 15 803 | 12 651 | 13 740 | 13 434 | 17 052 | 13 551 |
| Total operating expenses | -104 901 | -96 776 | -107 703 | -104 288 | -108 401 | -94 610 | -103 249 | -103 981 |
| EBITDA | 14 679 | 20 619 | 20 074 | 23 348 | 29 083 | 29 206 | 32 973 | 21 319 |
| % | 12,3% | 17,6% | 15,7% | 18,3% | 21,2% | 23,6% | 24,2% | 17,0% |
| Items affecting comparability | - | - | - | - | - | -1 465 | - | - |
| Depreciation/amortization | -14 392 | -14 432 | -14 361 | -16 283 | -16 142 | -16 153 | -15 722 | -16 865 |
| EBIT | 287 | 6 187 | 5 713 | 7 065 | 12 941 | 11 588 | 17 251 | 4 454 |
| % | 0,2% | 5,3% | 4,5% | 5,5% | 9,4% | 9,4% | 12,7% | 3,6% |
Financial Tables
Sales analysis by quarter
Segment summary
The Group's segments are divided according to which customer groups they target. The segments are divided into SE Public, DK Public, Private and Other and reflect the Group's internal reporting and follow-up of Group management.
The SE Public and DK Public segments find their customers in Sweden's and Denmark's public sectors. Segment Private collects the Group's offers that are aimed at customers outside the public sector and are not bound to any particular geographic market. Segment Other includes the Group's older products that are not included in any of the other segments and the Group's overhead costs.
In the Group's follow-up on the segments, the intercompany invoicing (revenues and costs) is presented as a net because of the substantial invoicing within the segments related to royalties to IP owning entities. The line Intercompany net includes de intercompany revenues and costs netted out to reflect a more accurate view of the segments.
| Jan-Mar 2024 | ||||
|---|---|---|---|---|
| (SEK 000) | Public | Private | Other | Group |
| SaaS | 10 157 | 28 216 | - | 38 373 |
| Support & Maintenance | 44 874 | 17 926 | 689 | 63 489 |
| Recurring revenue | 55 030 | 46 142 | 689 | 101 861 |
| License | 475 | 843 | - | 1 318 |
| Sofware revenue | 55 505 | 46 985 | 689 | 103 180 |
| Delivery | 17 150 | 4 970 | -0 | 22 120 |
| Net sales | 72 655 | 51 955 | 689 | 125 299 |
| Sales expenses | -3 741 | -9 809 | - | -13 549 |
| Other costs | -17 134 | -9 043 | -3 603 | -29 779 |
| Personnel costs | -45 432 | -25 678 | -3 094 | -74 203 |
| Capitalized work for own account | 10 178 | 3 373 | - | 13 551 |
| EBITDA | 16 527 | 10 799 | -6 007 | 21 319 |
| % | 22,7% | 20,8% | -872,1% | 17,0% |
| Depreciation/amortization | -11 196 | -5 085 | -583 | -16 865 |
| EBIT | 5 331 | 5 713 | -6 591 | 4 454 |
| % | 7,3% | 11,0% | -956,7% | 3,6% |
| jan-mar 2023 | ||||
|---|---|---|---|---|
| (SEK 000) | Public | Private | Other Koncern | |
| SaaS | 6 613 | 21 500 | - | 28 113 |
| Support & Maintenance | 40 464 | 18 785 | 865 | 60 115 |
| Recurring revenue | 47 077 | 40 285 | 865 | 88 228 |
| License | 1 473 | 1 363 | - | 2 836 |
| Sofware revenue | 48 550 | 41 648 | 865 | 91 064 |
| Delivery | 30 692 | 5 880 | -0 | 36 571 |
| Net sales | 79 242 | 47 528 | 865 | 127 635 |
| Sales expenses | -5 455 | -10 312 | -159 | -15 926 |
| Other costs | -14 293 | -10 465 | -2 903 | -27 661 |
| Personnel costs | -44 758 | -25 471 | -3 122 | -73 352 |
| Capitalized work for own account | 8 576 | 4 076 | - | 12 651 |
| EBITDA | 23 311 | 5 355 | -5 318 | 23 348 |
| % | 29,4% | 11,3% | -614,5% | 18,3% |
| Depreciation/amortization | -10 734 | -4 845 | -704 | -16 283 |
| EBIT | 12 576 | 511 | -6 022 | 7 065 |
| % | 15,9% | 1,1% | -695,9% | 5,5% |
Financial Tables
ARR and ACV
| Jan-Mar 2024 | |||||
|---|---|---|---|---|---|
| (Mkr) | Public | Private | Other | Group | |
| ARR In - SaaS | 50,3 | 109,4 | - | 159,6 | |
| ARR In - Support & Maint. | 171,9 | 71,4 | 2,3 | 245,6 | |
| ARR In - FX | 4,9 | 9,4 | - | 14,4 | |
| ARR In* | 227,0 | 190,3 | 2,3 | 419,6 | |
| ACV - SaaS | 0,5 | 5,5 | - | 6,0 | |
| ACV - Support & Maintenance | 1,4 | -0,9 | -0,1 | 0,4 | |
| ACV - Net | 1,9 | 4,6 | -0,1 | 6,4 | |
| ARR Out - SaaS | 51,9 | 120,7 | - | 172,6 | |
| ARR Out - Support & Maint. | 177,0 | 74,2 | 2,2 | 253,4 | |
| ARR Out | 228,9 | 194,9 | 2,2 | 426,0 |
| jan-mar 2023 | |||||
|---|---|---|---|---|---|
| (Mkr) | Public | Private | Other Koncern | ||
| ARR In - SaaS | 36,1 | 88,9 | - | 125,0 | |
| ARR In - Support & Maint. | 166,0 | 75,2 | 3,0 | 244,3 | |
| ARR In - FX | 1,2 | 1,6 | - | 2,7 | |
| ARR In | 203,3 | 165,7 | 3,0 | 372,0 | |
| ACV - SaaS | 2,1 | 5,3 | - | 7,4 | |
| ACV - Support & Maintenance | 4,9 | -1,4 | -0,2 | 3,3 | |
| ACV - Net | 7,0 | 3,9 | -0,2 | 10,7 | |
| ARR Out - SaaS | 38,4 | 95,1 | - | 133,5 | |
| ARR Out - Support & Maint. | 171,9 | 74,4 | 2,8 | 249,2 | |
| ARR Out | 210,3 | 169,6 | 2,8 | 382,7 |
Number of shares
| 2020-01-01 | 2021-01-01 | 2022-01-01 | 2023-01-01 | 2024-01-01 | |
|---|---|---|---|---|---|
| 2020-12-31 | 2021-12-31 | 2022-12-31 | 2023-12-31 | 2024-03-31 | |
| Shares outstanding beginning of the period | 53 173 907 | 53 463 907 | 53 726 057 | 54 217 825 | 54 217 825 |
| Share issue from warrant programme | 290 000 | 262 150 | 252 800 | 0 | 0 |
| 0 | 0 | 238 968 | 0 | 0 | |
| Shares outstanding at the end of the period | 53 463 907 | 53 726 057 | 54 217 825 | 54 217 825 | 54 217 825 |
Financial Tables
Key ratios for the group
| Jan-Mar | |||
|---|---|---|---|
| 2024 | 2023 | ||
| Employees at end of period | 263 | 284 | |
| Net sales, SEK 000 | 125 299 | 127 635 | |
| EBITDA, SEK 000 | 21 319 | 23 348 | |
| EBIT, SEK 000 | 4 454 | 7 065 | |
| Net profit for the period, SEK 000 | 1 769 | 4 855 | |
| EBITDA margin, % | 17,0% | 18,3% | |
| EBIT margin, % | 3,6% | 5,5% | |
| Profit margin, % | 1,4% | 3,8% | |
| Return on equity, %* | 7,1% | 2,8% | |
| Return on working capital, %* | 9,7% | 4,1% | |
| Equity ratio, % | 59% | 58% | |
| Equity per outstanding share at the end of the period, SEK | 9,19 | 8,36 | |
| Earnings per share - before dilution, SEK | 0,03 | 0,09 | |
| Earnings per share - after dilution, SEK | 0,03 | 0,09 | |
| Share price at the end of the period, SEK | 29,30 | 26,05 | |
| * Ratios including P&L measures are based on the most recent 12-month period |
Parent company income statement summary
| Jan-Mar | ||||
|---|---|---|---|---|
| (SEK 000) | 2024 | 2023 | ||
| Net sales | 39 103 | 40 511 | ||
| Operating expenses | ||||
| Sales expenses | -1 367 | -3 157 | ||
| Other costs | -16 322 | -14 901 | ||
| Personnel costs | -22 574 | -22 551 | ||
| Depreciation/amortization | -2 509 | -2 681 | ||
| Total operating expenses | -42 771 | -43 290 | ||
| Operating profit/loss | -3 668 | -2 780 | ||
| Result from participations in group companies | - | 70 | ||
| Other financial items | -5 663 | -1 061 | ||
| Tax | -154 | - | ||
| Net profit for the period | -9 486 | -3 771 | ||
| Parent company balance sheet summary | ||||
| 31 Mar | 31 dec |
Parent company balance sheet summary
| 31 Mar | ||||
|---|---|---|---|---|
| (SEK 000) | 2024 | 2023 | 2023 | |
| Intangible assets | 29 819 | 39 159 | 32 111 | |
| Tangible assets | 1 224 | 1 844 | 1 283 | |
| Financial assets | 346 391 | 347 460 | 346 671 | |
| Deferred tax asset | 2 363 | 2 880 | 2 215 | |
| Current assets (excl. cash equivalents) | 51 741 | 84 403 | 63 857 | |
| Cash and bank balances | 51 205 | 4 405 | 36 325 | |
| TOTAL ASSETS | 482 745 | 480 151 | 482 463 | |
| Restricted equity | 23 112 | 23 112 | 23 112 | |
| Non-restricted equity | 219 130 | 193 379 | 227 604 | |
| Total equity | 242 242 | 216 491 | 250 716 | |
| Long-term liabilities | 10 000 | 20 709 | 13 209 | |
| Current liabilities | 230 503 | 242 951 | 218 538 | |
| TOTAL EQUITY AND LIABILITIES | 482 745 | 480 151 | 482 463 |
Pledged assets and contingent liabilities
Pledged assets referred to shares in subsidiaries as security for loans. The pledged assets in the Group were the same as disclosed for the Parent Company.
| 31 Mar | ||
|---|---|---|
| (SEK 000) | 2024 | 2023 |
| Pledged assets | - | - |
| Contingent liabilities | - | - |
Definitions
Formpipe uses alternative key figures, also called APM (Alternative Performance Measures). Formpipe's APM's are calculated from the financial reports, which are prepared in accordance with applicable rules for financial reporting, where prepared figures are altered by adding or subtracting amounts from the presented numbers. Below the alternative performance measures, that Formpipe uses in published reports, are defined and described
Software revenue
The total of license revenue, revenue from SAAS and revenue from support and maintenance contracts.
Recurring revenue
Revenue of an annually recurring nature such as support and maintenance revenue and revenue from SAAS services regarding license agreements.
Annual recurring revenue (ARR)
Annual recurring revenue from all contracted agreements at the end of the period. Won contracts not yet generating revenue is included. Churned contracts still generating revenue is not included.
ARR IN
Initial value for the period's Annual recurring revenue. ARR won during the period is included in ARR IN.
Annual Contract Value (ACV)
Annual recurring revenue of the period's won (ACV +) and lost (ACV -) contracts (net).
ARR OUT
Closing value of the period's Annual recurring revenue, provided that all new/lost contracts (ACV) of the period have begun/ceased to be recognized.
FX effect
Revaluation of ARR IN to the closing balance exchange rates.
Fixed operating expenses
Other costs and personnel costs.
Operating expenses
Sales costs, other costs, personnel costs, capitalized development and depreciation.
EBITDA
Earnings before depreciation, amortization, acquisitionrelated costs and other items affecting comparability.
EBITDA-adj.
EBITDA exclusive capitalized work for own account.
Items affecting comparability
The item must be of a material nature to be reported separately and considered undesirable from the regular core operations and complicate the comparison. For example, acquisition-related items, restructuring-related items and write-downs.
EBIT
Operating profit/loss.
Operating margin before depreciation and amortization (EBITDA margin)
Earnings before depreciation, amortization, acquisitionrelated costs and other items affecting comparability as a percentage of net sales.
Operating margin before depreciation and amortization (EBITDA-adj margin)
Earnings before capitalized work for own account, depreciation, amortization, acquisition-related costs and other items affecting comparability as a percentage of net sales.
Operating margin (EBIT margin)
Operating profit/loss as a percentage of net sales.
Profit margin
Net profit/loss after tax as a percentage of sales at the end of the period.
Earnings per share - before dilution
Net profit/loss after tax divided by the average number of shares during the period.
Earnings per share - after dilution
Net proft/loss after tax adjusted for dilution effects divided by the average number of shares after dilution during the period.
Equity per share
Equity at the end of the period divided by the number of shares at the end of the period.
Return on equity
Profit/loss after tax as a percentage of average equity.
Return on working capital
Operating profit/loss as a percentage of average working capital (balance sheet total less non-interest bearing liabilities and cash and bank balances).
Free cash flow
Cash flow from operating activities minus cash flow from investing activities excluding acquisitions.
Net interest-bearing debt
Interest bearing debts minus cash and cash equivalents.
Equity ratio
Equity as a percentage of the balance sheet total.
Ordering financial information
Financial information and other related corporate information is published on www.formpipe.se Information may also be ordered from: Formpipe, Box 23131, SE-104 35 Stockholm and on [email protected]
Contact person for investor relations CFO Joakim Alfredson [email protected]