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Formpipe Software
Quarterly Report • Oct 25, 2023
3159_10-q_2023-10-25_51b29e3e-b9b5-4626-92da-2ef4f414743a.pdf
Quarterly Report
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Third quarter 2023 results Formpipe Software
Q3 2023.
| 2023 | 2022 | Δ | ||
|---|---|---|---|---|
| Net sales of SEK | 124 m | (117 m) | 5% | |
| Recurring revenues of SEK | 99m | (81 m) | 23% | |
| which corresponds to % of net sales | 80 % | (69 %) | ||
| EBITDA SEK | 29 m | (21 m) | 42% | |
| EBITDA margin | 24 % | (18 %) | ||
| EBIT | 12 m | (6 m) | 90% | |
| EBIT margin | 9 % | (5 %) | ||
| Net profit SEK | 9 m | (3 m) | 159% | |
| Net profit margin | 7 % | (3 %) | ||
| EPS before dilution SEK | 0,16 | (0.06) | 163% | |
| Cash flow from operating activities SEK | 20 m | (9 m) | 109% | |
| ACV SEK | 8 m | (6 m) | 34% | |
| ARR SEK | 408 m | (345 m) | 18% |
ACV SEK 8 m (6 m) ARR SEK 408 m (345 m)
| 2023 | 2022 | Δ | |
|---|---|---|---|
| Net sales of SEK | 389 m | (357 m) | 9% |
| Recurring revenues of SEK | 282 m | (236 m) | 20% |
| which corresponds to % of net sales | 72 % | (66 %) | |
| EBITDA SEK | 82 m | (52 m) | 56% |
| EBITDA margin | 21 % | (15 %) | |
| EBIT | 32 m | (10 m) | 216% |
| EBIT margin | 8 % | (3 %) | |
| Net profit SEK | 18 m | (4 m) | 401% |
| Net profit margin | 5 % | (1 %) | |
| EPS before dilution SEK | 0,34 | (0.07) | 399% |
| Cash flow from operating activities SEK | 36 m | (17 m) | 111% |
| ACV SEK | 30 m | (25 m) | 19% |
| ARR SEK | 408 m | (345 m) | 18% |
"Continued positive profitability trend" "Well positioned with good customer relations and global scalability"
CEO Formpipe Magnus Svenningson, CEO Formpipe
Christian Sundin,
| Jul-Sep | Jan-Sep | Helår | ||||
|---|---|---|---|---|---|---|
| (SEK Million) | 2023 | 2022 | 2023 | 2022 | R12 | 2022 |
| Net sales | 123,8 | 117,4 | 388,9 | 357,3 | 516,7 | 485,1 |
| whereof recurring revenue | 99,1 | 80,9 | 281,8 | 235,8 | 366,3 | 320,3 |
| EBITDA | 29,2 | 20,6 | 81,6 | 52,3 | 101,7 | 72,4 |
| Margin, % | 23,6% | 17,6% | 21,0% | 14,6% | 19,7% | 14,9% |
| EBIT | 11,6 | 6,2 | 31,6 | 10,0 | 37,3 | 15,7 |
| Margin, % | 9,4% | 5,3% | 8,1% | 2,8% | 7,2% | 3,2% |
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 October 2023.
Sales and profitability improvements with further potential.
I have been on board for two of the three months of the reporting period, and note that overall we are delivering a result according to plan. ARR increased to SEK 408 million (SEK 345 million), a good growth of 18%.
Net sales for the third quarter amounted to SEK 124 million (SEK 117 million) and for the period January-September to SEK 389 million (SEK 357 million), corresponding to a growth of 9% compared to the same period last year. Recurring revenue for the period January-September increased by 20% and amounted to SEK 282 million (SEK 236 million).
Operating profit (EBIT) amounted to SEK 12 million with a margin of 9% (5%) for the third quarter. For the period January-September, the operating profit (EBIT) increased to SEK 32 million (SEK 10 million) with a margin of 8% (3%). A good recovery and we continue to increase profitability step by step.
We won several new contracts during the third quarter and ACV for the period amounted to SEK 8 million (SEK 6 million). Within the Swedish public sector, the Swedish Transportstyrelsen signed another long-term extension of our case and document management system W3D3. Within the Private sector, we signed agreements with four new banks, which indicates increased activity in the sector and confirms that our offer is operationally critical and facilitates the banks' work with increasing regulatory compliance. During the quarter, we also note two terminated major contracts with banks that have had financial problems. This affects the quarter's ACV negatively.
Net sales for the third quarter in the public sector in Sweden increased to SEK 36 million (SEK 33 million) and in Denmark to SEK 39 million (SEK 35 million). We have now switched to the new agreement with Landbrugsstyrelsen, which is more focused on maintenance income and is expected to be expanded over time.
Net sales in the Private sector during the third quarter amounted to SEK 49 million (SEK 48 million) with an EBITDA margin of 13% (12%), while net sales January-September amounted to SEK 148 million (SEK 135 million) with an EBITDA margin of 12% (7%). We are gradually transferring more of the deliveries to
our partners. This affects the turnover in this quarter, but means that we can focus further on acquiring new partners and supporting them to become selfsustaining. With the continued strong development of recurring revenue, we can state that the business area exhibits the desired scalability and that profitability is developing well. The ERP pipeline has strengthened during the third quarter after a somewhat slow start this year. We see positive developments within Banking.
Since I started in August, I have visited our various offices and met many great Formpipe colleagues. This has been energizing and filled me with respect for the competence I meet in the company. With my background in the Cyber Security area and sales, driving transition to SaaS and managed services in both Europe and the US, I see that Formpipe is well positioned with an attractive SaaS offering. In addition, there are clear growth opportunities in increasing services with our own resources around our platforms in the public sector.
Formpipe's market position in the public sector in Sweden and Denmark is impressive and a solid base from which to grow. The SaaS market is expanding in the Content Services area, for better information management and especially in data integrity, which meets the increasingly tougher demands from the EU. We are well postioned for additional sales with our existing customers but also to enter new customer segments for us.
I am happy to be on board and have started the customer dialogue to get to know our businesses in depth. Having just returned from the large independent Microsoft Community event in North America, I am
even more convinced. Our Lasernet solution is one of the best complements to ERP systems on the market. I see great potential in a global sales expansion. There is work to be done and I look with confidence to the future.
Magnus Svenningson, CEO Formpipe
Financial information
July – September 2023
Net sales for the period increased by 5 % compared to previous year and totalled to SEK 123.8 million (117.4 million). Software revenue increased by 20 % from the previous year and totalled to SEK 101.1 million (84.3 million).
Total recurring revenue for the period increased by 23 % from the previous year and totalled to SEK 99.1 million (80.9 million), which is equivalent to 80 % of net sales (69 %). Exchange rate effects have affected net sales favourably by SEK 6.6 million in comparison with the previous year.
Revenue split, Jan - Jun 2023
January – September 2023
Net sales for the period increased by 9 % compared to previous year and totalled to SEK 388.9 million (357.3 million). Software revenue increased by 20 % from the previous year and totalled to SEK 294.5 million (245.3 million).
Total recurring revenue for the period increased by 20 % from the previous year and totalled to SEK 281.8 million (235.8 million), which is equivalent to 72 % of net sales (66 %). Exchange rate effects have affected net sales favourably by SEK 20.9 million in comparison with the previous year.
Recurring revenue, rolling 12 m, mSEK
Annual recurring revenue (ARR), mSEK
July – September 2023
The operating costs for the period totalled to SEK 110.8 million (111.2 million). Personnel costs totalled to SEK 65.3 million (65.0 million). Selling expenses totalled to SEK 14.2 million (16.9 million). Other costs totalled to SEK 28.5 million (28.1 million). During the period, the outgoing CEO's severance pay of SEK 1.5 million has been expensed as an item affecting comparability. Exchange rate effects have increased expenses by SEK 6.8 million in comparison with the previous year.
Financial information
January – September 2023
The operating costs for the period totalled to SEK 355.9 million (347.3 million). Personnel costs totalled to SEK 214.0 million (208.6 million). Selling expenses totalled to SEK 46.5 million (48.7 million). Other costs totalled to SEK 86.6 million (85.8 million). During the period, the outgoing CEO's severance pay of SEK 1.5 million has been expensed as an item affecting comparability. Exchange rate effects have increased expenses by SEK 21.4 million in comparison with the previous year.
Recurring revenues in relation to fixed operating costs, rolling 12 m, mSEK
July – September 2023
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 29.2 million (20.6 million) with an EBITDA margin of 23.6 % (17.6 %). Operating profit (EBIT) totalled to SEK 11.6 million (6.2 million) with an operating margin of 9.4 % (5.2 %). Net profit totalled to SEK 8.8 million (3.4 million). Exchange rate effects have affected EBIT unfavourably by SEK 0.2 million in comparison with the previous year.
January – September 2023
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 81.6 million (52.3 million) with an EBITDA margin of 21.0 % (14.6 %). Operating profit (EBIT) totalled to SEK 31.6 million (10.0 million) with an
operating margin of 8.1 % (2.8 %). Net profit totalled to SEK 18.3 million (3.6 million). Exchange rate effects have affected EBIT unfavourably by SEK 0.5 million in comparison with the previous year.
Cash equivalents
Cash and cash equivalents at the end of the period amounted to SEK 0.0 million (0.0 million). The company's total bank overdraft facility amounts to SEK 50.0 million. At the end of the period it was utilized with SEK 3.8 million (36.8 million). The total accessible funds therefore amounts to SEK 46.2 million (13.2 million).
The company had interest-bearing debt at the end of the period totalling to SEK 35.1 million (82.2 million), whereof SEK 6.3 million (10.4 million) refers to lease debts according to IFRS 16.
The company's net debt position thereby totalled to SEK 35.1 million (82.2 million), which corresponds to a net debt position of SEK 28.8 million (71.8 million) excluding IFRS 16-related debt.
Deferred tax asset
By the end of the period the company's deferred tax assets attributable to accumulated losses amounted to SEK 5.8 million (SEK 11.5 million).
Equity
Equity at the end of the period amounted to SEK 475.8 million (431.3 million), which was equivalent to
Financial information
SEK 8.78 (7.95) 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 15.5 million (21.0 million) from the end of the year.
Equity ratio
The equity ratio at the end of the period was 60 % (56 %).
Cash flow from operating activities
Cash flow from operating activities for the period January - September totalled to SEK 36.1 million (17.1 million).
Investments and acquisitions
Total investments for the period January – September amounted to SEK 42.0 million (81.8 million).
Investments in intangible assets totalled to SEK 40.5 million (40.0 million) and refer to capitalized product development costs.
- Investments in tangible and financial assets totalled to SEK 1.6 million (11.5 million).
- Acquisitions of subsidiaries amounted to SEK 0.0 million (30.3 million).
Financing
During the period January – September the company amortized SEK 7.5 million (5.0 million).
The existing bank overdraft facility totalling to SEK 50.0 million was utilized at the end of the period with 3.8 million (36.8 million). Leasing related liabilities amounted to SEK 6.3 million (10.4 million) at the end of the period. The company's interest-bearing debt at the end of the period was thereby SEK 35.1 million (82.2 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.
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.
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 cloud-based ERP system Microsoft Dynamics 365 grew by 28 percent in the forth quarter (Apr-Jun) of Microsoft's fiscal year 2023. 3 Temenos grew its SaaS business by 30 percent in the second quarter 2023. 4
4 https://www.temenos.com/wp-content/uploads/2023/07/Temenos-Q2-2023- Results-Press-Release-40x073dig.pdf
1 Enterprise Application Software Forecast Q420, Gartner, Inc. 2020
2 Market Trends: Cloud Shift — 2020 Through 2024, Gartner, Inc. 2020 3 https://www.microsoft.com/en-us/investor/earnings/fy-2023-q4/pressrelease-webcast
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.
Public sector
Formpipe's strategy in the public sector is based on the long-term goal of becoming the preferred provider of digital government in the EU.
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.
The employers' organization Dansk Industri believes that a modernisation and digitalisation of the public sector can free up DKK 20 billion by 2025. Money that can then be returned to the public sector and contribute to increasing the level of service.
Formpipe announces change of CEO.
Christian Sundin will leave as CEO of Formpipe Software AB (publ). The board has started a recruitment process and until a new CEO is appointed, Christian Sundin will continue in the role to ensure a smooth succession.
Formpipe appoints new CEO.
Magnus Svenningson takes office as the new CEO of Formpipe on August 1. Magnus most recently comes from the role of CEO of Primekey and has a broad experience from the software industry, both in private and public sector.
Nothing to report.
Employees
The number of employees at the end of the reporting period totalled to 267 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 informationintensive 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
| Interim report Jan-Dec |
|---|
| Interim report Jan-Mar |
| Annual meeting 2024 |
| Interim report Jan-Jun |
| Interim report Jan-Sep |
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 October 25, 2023 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
| Jul-Sep | Jan-Sep | |||
|---|---|---|---|---|
| (SEK 000) | 2023 | 2022 | 2023 | 2022 |
| Net Sales | 123 816 | 117 395 | 388 935 | 357 321 |
| Sales expenses | -14 241 | -16 869 | -46 507 | -48 685 |
| Other costs | -28 500 | -28 089 | -86 641 | -85 774 |
| Personnel costs | -65 304 | -64 971 | -213 977 | -208 642 |
| Capitalized work for own account | 13 434 | 13 153 | 39 825 | 38 119 |
| Operating profit/loss before depreciation/amortization | ||||
| and non-comparative items (EBITDA) | 29 206 | 20 619 | 81 636 | 52 340 |
| Items affecting comparability | -1 465 | - | -1 465 | - |
| Depreciation/amortization | -16 153 | -14 432 | -48 577 | -42 334 |
| Operating profit/loss (EBIT) | 11 588 | 6 187 | 31 594 | 10 006 |
| Financial income and expenses | -713 | -946 | -1 956 | -1 628 |
| Exchange rate differences | 2 889 | -1 803 | -2 951 | -2 170 |
| Tax | -4 961 | -36 | -8 411 | -2 559 |
| Net profit for the period | 8 804 | 3 403 | 18 276 | 3 649 |
| Of which the following relates to: | ||||
| Parent company shareholders | 8 804 | 3 403 | 18 276 | 3 649 |
| Other comprehensive income | ||||
| Translation differences | -12 046 | 9 694 | 15 538 | 21 011 |
| Other comprehensive income for the period, net after tax | -12 046 | 9 694 | 15 538 | 21 011 |
| Total comprehensive income for the period | -3 243 | 13 097 | 33 813 | 24 660 |
| Of which the following relates to: Parent company shareholders |
-3 243 | 13 097 | 33 813 | 24 660 |
| EBITDA margin, % | 23,6% | 17,6% | 21,0% | 14,6% |
| EBIT margin, % | 9,4% | 5,3% | 8,1% | 2,8% |
| Profit margin, % | 7,1% | 2,9% | 4,7% | 1,0% |
| Earnings per share attributable to the parent company's shareholders during the period (SEK per share) |
||||
| - before dilution | 0,16 | 0,06 | 0,34 | 0,07 |
| - after dilution | 0,16 | 0,06 | 0,34 | 0,07 |
| Average no. of shares before dilution, in 000 | 54 218 | 54 218 | 54 218 | 54 077 |
| Average no. of shares after dilution, in 000 | 54 218 | 54 218 | 54 218 | 54 173 |
| 30 Sep | |||
|---|---|---|---|
| (SEK 000) | 2023 | 2022 | 2022 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Capitalized expenditure | 164 832 | 151 506 | 158 251 |
| Goodwill | 453 805 | 437 148 | 441 367 |
| Other intangibel assets | 9 685 | 12 946 | 12 695 |
| Intangible assets | 628 323 | 601 601 | 612 313 |
| Tangible assets | |||
| Other equipment & furnitures | 13 445 | 19 332 | 19 231 |
| Tangibel assets | 13 445 | 19 332 | 19 231 |
| Financial assets | |||
| Other financial assets | 1 744 | 1 667 | 1 681 |
| Other non-current receivables | 1 691 | 2 619 | 2 430 |
| Financial assets | 3 435 | 4 286 | 4 112 |
| Non-current receivables | |||
| Deferred tax assets | 5 922 | 31 627 | 4 003 |
| Non-current receivables | 5 922 | 31 627 | 4 003 |
| Non-current assets | 651 125 | 656 846 | 639 658 |
| Current assets (excl. cash equivalents) | |||
| Trade receivables | 87 104 | 74 352 | 83 484 |
| Current tax assets | 16 082 | 166 | 16 025 |
| Other receivables | 82 | 15 | 26 |
| Prepaid costs and accrued income | 37 816 | 37 331 | 38 570 |
| 141 085 | 111 864 | 138 105 | |
| Cash equivalents | - | - | 4 781 |
| TOTAL ASSETS | 792 209 | 768 710 | 782 545 |
| 30 Sep | |||||
|---|---|---|---|---|---|
| (SEK 000) | 2023 | 2022 | 2022 | ||
| EQUITY | |||||
| Share capital | 5 422 | 5 422 | 5 422 | ||
| Other paid-in capital | 229 177 | 229 207 | 229 177 | ||
| Revaluation reserves | 65 016 | 43 819 | 49 478 | ||
| Retained earnings including profit for the year | 176 218 | 152 832 | 157 942 | ||
| Equity | 475 832 | 431 279 | 442 019 | ||
| LIABILITIES | |||||
| Non-current liabilities | |||||
| Liabilities to credit institutions | 15 000 | 35 000 | 22 500 | ||
| Deferred tax liabilities | 38 385 | 43 134 | 36 060 | ||
| Non-current leasing liabilities | 2 065 | 5 013 | 5 083 | ||
| Non-current liabilities | 55 451 | 83 146 | 63 643 | ||
| Current liabilities | |||||
| Liabilities to credit institutions | 13 824 | 36 757 | 10 000 | ||
| Current leasing liabilities | 4 250 | 5 396 | 6 631 | ||
| Trade liabilities | 25 638 | 20 647 | 34 703 | ||
| Current tax liabilities | 257 | -144 | - | ||
| Other liabilities | 11 697 | 11 716 | 12 042 | ||
| Accrued expenses and deferred income | 205 261 | 179 913 | 213 508 | ||
| Current liabilities | 260 926 | 254 284 | 276 884 | ||
| Liabilities | 316 377 | 337 431 | 340 526 | ||
| TOTAL EQUITY AND LIABILITIES | 792 209 | 768 710 | 782 545 | ||
| Net interest-bearing debt (-) / cash (+) | -35 139 | -82 166 | -39 432 |
| Equity attributable to the parent company's shareholders | ||||||||
|---|---|---|---|---|---|---|---|---|
| Other | Profit/loss | |||||||
| Share | contributed | Other | brought | |||||
| (SEK 000) | capital | capital | reserves | forward | Total | |||
| Balance at January 1, 2021 | 5 373 | 214 501 | 22 808 | 186 958 | 429 640 | |||
| Comprehensive income | ||||||||
| Net profit for the period | - | - | - | 3 649 | 3 649 | |||
| Other comprehensive income items | - | - | 21 011 | - | 21 011 | |||
| Total comprehensive income | - | - | 21 011 | 3 649 | 24 660 | |||
| Transaction with owners | ||||||||
| Dividend | - | - | - | -37 776 | -37 776 | |||
| Share issue | 49 | 16 578 | - | - | 16 627 | |||
| Repurchase of warrants | - | -2 151 | - | - | -2 151 | |||
| Employee warrant schemes | - | 279 | - | - | 279 | |||
| Total transaction with owners | 49 | 14 705 | - | -37 776 | -23 021 | |||
| Balance at September 30, 2022 | 5 422 | 229 207 | 43 819 | 152 832 | 431 279 | |||
| Balance at January 1, 2022 | 5 422 | 229 177 | 49 478 | 157 942 | 442 019 | |||
| Comprehensive income | ||||||||
| Net profit for the period | - | - | - | 18 276 | 18 276 | |||
| Other comprehensive income items | - | - | 15 538 | - | 15 538 | |||
| Total comprehensive income | - | - | 15 538 | 18 276 | 33 813 | |||
| Transaction with owners | ||||||||
| Dividend | - | - | - | - | - | |||
| Total transaction with owners | - | - | - | - | - | |||
| Balance at September 30, 2023 | 5 422 | 229 177 | 65 016 | 176 218 | 475 832 |
| Jul-Sep | Jan-Sep | |||||
|---|---|---|---|---|---|---|
| (SEK 000) | 2023 | 2022 | 2023 | 2022 | ||
| Cash flow from operating activities | ||||||
| Operating profit/loss (EBIT) | 11 567 | 6 060 | 31 560 | 9 972 | ||
| Items not affecting cash flow | ||||||
| - Depreciation | 14 204 | 18 261 | 42 408 | 42 334 | ||
| - Other items | 423 | -18 565 | 347 | -12 467 | ||
| Other items affecting liquidity | ||||||
| Interest revenue | 76 | 21 | 169 | 24 | ||
| Interest expense | -771 | -932 | -2 011 | -1 618 | ||
| Realized currency effects | 2 480 | - | -3 962 | - | ||
| Income tax paid | -2 160 | 4 393 | -7 715 | -4 840 | ||
| Cash flow from operating activities | 25 819 | 9 238 | 60 796 | 33 404 | ||
| before working capital changes | ||||||
| Increase (-) / decrease (+) work in progress | -424 | 57 | -21 | -1 016 | ||
| Increase (-) / decrease (+) trade receivables | -490 | -527 | -1 516 | 6 726 | ||
| Increase (-) / decrease (+) other current receivables | -726 | 4 947 | 1 242 | -4 233 | ||
| Increase (-) / decrease (+) trade payables | 556 | -879 | -9 685 | -2 291 | ||
| Increase (-) / decrease (+) current liabillities | -5 044 | -3 424 | -14 740 | -15 517 | ||
| Cash flow from changes in working capital | -6 127 | 174 | -24 721 | -16 331 | ||
| Cash flow from operating activities | 19 692 | 9 412 | 36 075 | 17 074 | ||
| Cash flow from investing activities | ||||||
| Investment in intangible assets | -13 498 | -13 886 | -40 484 | -40 008 | ||
| Investment in tangible assets | -292 | -10 216 | -1 551 | -11 543 | ||
| Investment in financial assets | 263 | - | 738 | - | ||
| Investment in subsidiaries | - | 2 625 | -0 | -30 252 | ||
| Cash flow from investing activities | -13 527 | -21 477 | -41 297 | -81 804 | ||
| Cash flow from financing activities | ||||||
| New share issue | - | - | - | 10 082 | ||
| Issue of warrants | - | - | - | 6 798 | ||
| Warrant buy-back | - | - | - | -2 151 | ||
| Raising och loans | - | 17 234 | - | 76 761 | ||
| Repayment of loans | -2 500 | -4 303 | -7 500 | -7 170 | ||
| Change in bank overdraft facility | -1 212 | -1 763 | 3 824 | -2 949 | ||
| Dividend paid | - | - | - | -37 776 | ||
| Cash flow from financing activities | -3 712 | 11 168 | -3 676 | 43 596 | ||
| Chas flow for the period | 2 453 | -897 | -8 899 | -21 134 | ||
| Currency translation differences for cash | -2 452 | 897 | 4 118 | 3 069 | ||
| Cash and cash equivalent at the beginning of the period | - | - | 4 781 | 18 065 | ||
| Cash and cash equivalent at the end of the period | - | - | - | - |
| (SEK 000) | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 |
|---|---|---|---|---|---|---|---|---|
| SaaS | 19 427 | 20 832 | 22 192 | 24 481 | 26 254 | 28 113 | 32 135 | 33 679 |
| Support and maintenance | 53 990 | 55 685 | 56 175 | 56 424 | 58 212 | 60 115 | 62 339 | 65 454 |
| Recurring revenue | 73 418 | 76 517 | 78 368 | 80 905 | 84 467 | 88 228 | 94 474 | 99 133 |
| License | 9 923 | 3 691 | 2 437 | 3 426 | 7 012 | 2 836 | 7 924 | 1 929 |
| Software revenues | 83 340 | 80 208 | 80 805 | 84 330 | 91 479 | 91 064 | 102 398 | 101 062 |
| Deliveries | 38 921 | 40 139 | 38 775 | 33 064 | 36 298 | 36 571 | 35 086 | 22 754 |
| Net sales | 122 261 | 120 347 | 119 580 | 117 395 | 127 777 | 127 635 | 137 484 | 123 816 |
| Sales expenses | -15 200 | -16 056 | -15 760 | -16 869 | -18 606 | -15 926 | -16 340 | -14 241 |
| Other costs | -26 879 | -27 005 | -30 680 | -28 089 | -31 211 | -27 661 | -30 480 | -28 500 |
| Personnel costs | -65 486 | -72 124 | -71 546 | -64 971 | -73 690 | -73 352 | -75 321 | -65 304 |
| Capitalized development costs | 13 377 | 11 881 | 13 085 | 13 153 | 15 803 | 12 651 | 13 740 | 13 434 |
| Total operating expenses | -94 189 | -103 305 | -104 901 | -96 776 | -107 703 | -104 288 | -108 401 | -94 610 |
| EBITDA | 28 072 | 17 042 | 14 679 | 20 619 | 20 074 | 23 348 | 29 083 | 29 206 |
| % | 23,0% | 14,2% | 12,3% | 17,6% | 15,7% | 18,3% | 21,2% | 23,6% |
| Depreciation/amortization | -12 046 | -13 511 | -14 392 | -14 432 | -14 361 | -16 283 | -16 142 | -16 153 |
| EBIT | 16 027 | 3 531 | 287 | 6 187 | 5 713 | 7 065 | 12 941 | 11 588 |
| % | 13,1% | 2,9% | 0,2% | 5,3% | 4,5% | 5,5% | 9,4% | 9,4% |
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.
| Jul-Sep 2023 | Jan-Sep 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | ||||||||
| (SEK 000) | Public | Public | Private | Other | Group | Public | Public | Private | Other | Group | |
| SaaS | 4 468 | 3 836 | 25 375 | - | 33 679 | 12 842 | 9 872 | 71 213 | - | 93 927 | |
| Support & Maintenance | 21 851 | 23 193 | 19 636 | 775 | 65 454 | 66 824 | 61 010 | 57 608 | 2 466 | 187 908 | |
| Recurring revenue | 26 319 | 27 029 | 45 010 | 775 | 99 133 | 79 666 | 70 882 | 128 821 | 2 466 | 281 835 | |
| License | 410 | 1 529 | -10 | - | 1 929 | 3 535 | 3 374 | 5 780 | - | 12 689 | |
| Sofware revenue | 26 729 | 28 558 | 45 000 | 775 | 101 062 | 83 200 | 74 256 | 134 601 | 2 466 | 294 524 | |
| Delivery | 8 780 | 10 376 | 3 598 | -0 | 22 754 | 30 390 | 50 285 | 13 737 | -0 | 94 412 | |
| Net sales | 35 509 | 38 934 | 48 599 | 775 | 123 816 | 113 590 | 124 541 | 148 338 | 2 466 | 388 935 | |
| Costs, external | -18 585 | -28 857 | -42 520 | -4 648 | -94 610 | -67 907 | -91 508 | -129 928 | -17 956 | -307 299 | |
| Intercompany net | 142 | -142 | 0 | - | - | 379 | -379 | -0 | - | - | |
| EBITDA | 17 066 | 9 935 | 6 078 | -3 873 | 29 206 | 46 062 | 32 654 | 18 410 | -15 490 | 81 636 | |
| % | 48,1% | 25,5% | 12,5% | -499,7% | 23,6% | 40,6% | 26,2% | 12,4% | -628,1% | 21,0% |
| Jul-Sep 2022 | Jan-Sep 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | ||||||||
| (SEK 000) | Public | Public | Private | Other | Group | Public | Public | Private | Other | Group | |
| SaaS | 4 135 | 2 036 | 18 310 | - | 24 481 | 11 298 | 5 802 | 50 405 | - | 67 505 | |
| Support & Maintenance | 20 962 | 16 394 | 18 114 | 954 | 56 424 | 63 163 | 47 812 | 54 404 | 2 906 | 168 284 | |
| Recurring revenue | 25 096 | 18 430 | 36 424 | 954 | 80 905 | 74 461 | 53 614 | 104 809 | 2 906 | 235 789 | |
| License | 118 | 103 | 3 205 | - | 3 426 | 1 631 | 987 | 6 936 | - | 9 553 | |
| Sofware revenue | 25 214 | 18 534 | 39 629 | 954 | 84 330 | 76 091 | 54 601 | 111 744 | 2 906 | 245 343 | |
| Delivery | 7 921 | 16 936 | 8 207 | -0 | 33 064 | 29 382 | 59 206 | 23 391 | -0 | 111 979 | |
| Net sales | 33 135 | 35 470 | 47 836 | 954 | 117 395 | 105 473 | 113 808 | 135 135 | 2 906 | 357 321 | |
| Costs, external | -21 721 | -26 687 | -41 938 | -6 429 | -96 776 | -74 255 | -84 102 | -125 315 | -21 309 | -304 982 | |
| Intercompany net | 108 | -107 | -1 | - | - | 394 | -394 | - | - | - | |
| EBITDA | 11 521 | 8 676 | 5 897 | -5 475 | 20 619 | 31 612 | 29 311 | 9 820 | -18 404 | 52 340 | |
| % | 34,8% | 24,5% | 12,3% | -573,8% | 17,6% | 30,0% | 25,8% | 7,3% | -633,4% | 14,6% |
| Jul-Sep 2023 | Jan-Sep 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | |||||||
| (Mkr) | Public | Public | Private | Other | Group | Public | Public | Private | Other | Group |
| ARR In - SaaS | 22,8 | 21,2 | 103,4 | - | 147,4 | 22,9 | 13,2 | 88,9 | - | 125,0 |
| ARR In - Support & Maint. | 89,1 | 88,4 | 78,1 | 2,6 | 258,2 | 89,1 | 76,9 | 75,2 | 3,0 | 244,3 |
| ARR In - FX | - | -2,4 | -3,1 | - | -5,5 | - | 3,1 | 6,3 | - | 9,4 |
| ARR In* | 111,9 | 107,2 | 178,5 | 2,6 | 400,2 | 112,0 | 93,2 | 170,4 | 3,0 | 378,6 |
| ACV - SaaS | 0,3 | 4,1 | 4,9 | - | 9,3 | 0,2 | 11,3 | 14,0 | - | 25,5 |
| ACV - Support & Maintenance | 1,0 | -1,9 | 0,1 | -0,2 | -1,0 | 1,1 | 4,9 | -1,0 | -0,7 | 4,3 |
| ACV - Net | 1,3 | 2,2 | 5,0 | -0,2 | 8,3 | 1,2 | 16,2 | 13,1 | -0,7 | 29,8 |
| ARR Out - SaaS | 23,1 | 25,0 | 106,4 | - | 154,4 | 23,1 | 25,0 | 106,4 | - | 154,4 |
| ARR Out - Support & Maint. | 90,1 | 84,4 | 77,1 | 2,4 | 254,1 | 90,1 | 84,4 | 77,1 | 2,4 | 254,1 |
| ARR Out | 113,2 | 109,4 | 183,5 | 2,4 | 408,5 | 113,2 | 109,4 | 183,5 | 2,4 | 408,5 |
| jul-sep 2022 | jan-sep 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | |||||||
| (Mkr) | Public | Public | Private | Other Koncern | Public | Public | Private | Other Koncern | ||
| ARR In - SaaS | 19,0 | 11,9 | 73,8 | - | 104,7 | 16,1 | 8,7 | 59,9 | - | 84,7 |
| ARR In - Support & Maint. | 87,6 | 62,3 | 74,5 | 3,5 | 227,9 | 84,3 | 60,1 | 71,1 | 3,7 | 219,2 |
| ARR In - FX | - | 1,5 | 5,1 | - | 6,6 | - | 4,7 | 11,8 | - | 16,5 |
| ARR In | 106,6 | 75,6 | 153,5 | 3,5 | 339,2 | 100,4 | 73,5 | 142,8 | 3,7 | 320,4 |
| ACV - SaaS | 0,0 | 0,5 | 6,5 | - | 7,0 | 2,9 | 3,2 | 17,6 | - | 23,7 |
| ACV - Support & Maintenance | -0,3 | 0,3 | -0,6 | -0,2 | -0,8 | 3,1 | -0,3 | -1,0 | -0,4 | 1,4 |
| ACV - Net | -0,2 | 0,8 | 5,9 | -0,2 | 6,2 | 6,0 | 2,9 | 16,6 | -0,4 | 25,0 |
| ARR Out - SaaS | 19,0 | 12,5 | 82,5 | - | 114,0 | 19,0 | 12,5 | 82,5 | - | 114,0 |
| ARR Out - Support & Maint. | 87,3 | 63,9 | 76,9 | 3,3 | 231,4 | 87,3 | 63,9 | 76,9 | 3,3 | 231,4 |
| ARR Out | 106,3 | 76,4 | 159,4 | 3,3 | 345,4 | 106,3 | 76,4 | 159,4 | 3,3 | 345,4 |
| 2019-01-01 | 2020-01-01 | 2021-01-01 | 2022-01-01 | 2023-01-01 | |
|---|---|---|---|---|---|
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | 2023-09-30 | |
| Shares outstanding beginning of the period | 52 887 406 | 53 173 907 | 53 463 907 | 53 726 057 | 54 217 825 |
| Share issue from warrant programme | 286 501 | 290 000 | 262 150 | 252 800 | 0 |
| 0 | 0 | 0 | 238 968 | 0 | |
| Shares outstanding at the end of the period | 53 173 907 | 53 463 907 | 53 726 057 | 54 217 825 | 54 217 825 |
| Jan-Sep | ||
|---|---|---|
| 2023 | 2022 | |
| Employees at end of period | 267 | 284 |
| Net sales, SEK 000 | 388 935 | 357 321 |
| EBITDA, SEK 000 | 81 636 | 52 340 |
| EBIT, SEK 000 | 31 594 | 10 006 |
| Net profit for the period, SEK 000 | 18 276 | 3 649 |
| EBITDA margin, % | 21,0% | 14,6% |
| EBIT margin, % | 8,1% | 2,8% |
| Profit margin, % | 4,7% | 1,0% |
| Return on equity, %* | 4,9% | 3,3% |
| Return on working capital, %* | 7,4% | 5,5% |
| Equity ratio, % | 60% | 56% |
| Equity per outstanding share at the end of the period, SEK | 8,78 | 7,95 |
| Earnings per share - before dilution, SEK | 0,34 | 0,07 |
| Earnings per share - after dilution, SEK | 0,34 | 0,07 |
| Share price at the end of the period, SEK | 26,30 | 25,05 |
| * Ratios including P&L measures are based on the most recent 12-month period |
| Jul-Sep | Jan-Sep | |||||
|---|---|---|---|---|---|---|
| (SEK 000) | 2023 | 2022 | 2023 | 2022 | ||
| Net sales | 36 770 | 30 971 | 119 853 | 97 557 | ||
| Operating expenses | ||||||
| Sales expenses | -1 990 | -3 695 | -8 683 | -9 491 | ||
| Other costs | -14 366 | -14 941 | -45 740 | -44 949 | ||
| Personnel costs | -19 570 | -18 773 | -66 915 | -64 476 | ||
| Depreciation/amortization | -1 239 | -994 | -3 711 | -2 713 | ||
| Total operating expenses | -37 165 | -38 402 | -125 049 | -121 630 | ||
| Operating profit/loss | -395 | -7 431 | -5 195 | -24 073 | ||
| Result from participations in group companies | 23 196 | - | 23 266 | 466 | ||
| Other financial items | 545 | -5 525 | -6 209 | -10 063 | ||
| Tax | 5 | - | -622 | - | ||
| Net profit for the period | 23 351 | -12 957 | 11 240 | -33 670 | ||
| 30 Sep | 31 dec |
| 30 Sep | |||
|---|---|---|---|
| (SEK 000) | 2023 | 2022 | 2022 |
| Intangible assets | 34 479 | 8 862 | 41 124 |
| Tangible assets | 1 439 | 2 030 | 2 012 |
| Financial assets | 346 934 | 385 709 | 347 674 |
| Deferred tax asset | 3 204 | 2 249 | 2 880 |
| Current assets (excl. cash equivalents) | 57 970 | 78 779 | 109 483 |
| Cash and bank balances | - | - | 4 073 |
| TOTAL ASSETS | 444 025 | 477 629 | 507 246 |
| Restricted equity | 23 113 | 23 113 | 23 113 |
| Non-restricted equity | 205 591 | 170 364 | 197 149 |
| Total equity | 228 703 | 193 477 | 220 262 |
| Long-term liabilities | 15 035 | 25 000 | 23 209 |
| Current liabilities | 200 287 | 259 153 | 263 775 |
| TOTAL EQUITY AND LIABILITIES | 444 025 | 477 629 | 507 246 |
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.
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| (SEK 000) | 2023 | 2022 | 2022 |
| 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)
Recurring revenue for the period's last month multiplied by 12, to obtain the recurring revenue for the coming 12 months from contracts with recognized revenue.
ARR IN
Initial value for the period's Annual recurring revenue.
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]