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Formpipe Software
Quarterly Report • Jul 14, 2023
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Quarterly Report
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Second quarter 2023 results Formpipe Software
Q2 2023.
| 2023 | 2022 | Δ | ||
|---|---|---|---|---|
| Net sales of SEK | 137 m | (120 m) | 15% | |
| Recurring revenues of SEK | 94m | (78 m) | 21% | |
| which corresponds to % of net sales | 69 % | (66 %) | ||
| EBITDA SEK | 29 m | (15 m) | 98% | |
| EBITDA margin | 21 % | (12 %) | ||
| EBIT | 13 m | (0 m) | n/a | |
| EBIT margin | 9 % | (0 %) | ||
| Net profit SEK | 5 m | (-1 m) | n/a | |
| Net profit margin | 3 % | (-1 %) | ||
| EPS before dilution SEK | 0,09 | (-0.01) | n/a | |
| Cash flow from operating activities SEK | 1 m | (-5 m) | n/a | |
| ACV SEK | 11 m | (10 m) | 8% | |
| ARR SEK | 406 m | (333 m) | 22% |
| ACV | SEK 11 m (10 m) |
|---|---|
| ARR | SEK 406 m (333 m) |
| 2023 | 2022 | Δ | |
|---|---|---|---|
| Net sales of SEK | 265 m | (240 m) | 11% |
| Recurring revenues of SEK | 183 m | (155 m) | 18% |
| which corresponds to % of net sales | 69 % | (65 %) | |
| EBITDA SEK | 52 m | (32 m) | 65% |
| EBITDA margin | 20 % | (13 %) | |
| EBIT | 20 m | (4 m) | 411% |
| EBIT margin | 8 % | (2 %) | |
| Net profit SEK | 11 m | (0 m) | n/a |
| Net profit margin | 4 % | (0 %) | |
| EPS before dilution SEK | 0,17 | (0.01) | n/a |
| Cash flow from operating activities SEK | 16 m | (8 m) | 114% |
| ACV SEK | 22 m | (19 m) | 14% |
| ARR SEK | 406 m | (333 m) | 22% |
profitability trend" Christian Sundin, profitability and ARR "
"Continued positive
"Growth in both
CEO Formpipe
| Apr-Jun | Jan-Jun | Full year | ||||
|---|---|---|---|---|---|---|
| (SEK Million) | 2023 | 2022 | 2023 | 2022 | R12 | 2022 |
| Net sales | 137,5 | 119,6 | 265,1 | 239,9 | 510,3 | 485,1 |
| whereof recurring revenue | 94,5 | 78,4 | 182,7 | 154,9 | 348,1 | 320,3 |
| EBITDA | 29,1 | 14,7 | 52,4 | 31,7 | 93,1 | 72,4 |
| Margin, % | 21,2% | 12,3% | 19,8% | 13,2% | 18,2% | 14,9% |
| EBIT | 12,9 | 0,4 | 20,0 | 3,9 | 31,8 | 15,7 |
| Margin, % | 9,4% | 0,3% | 7,5% | 1,6% | 6,2% | 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, 14 July 2023.
Continued strengthened profitability and growth in ARR.
As we previously communicated, we are past the phase of major cost increases in our growth plan. All of our business areas execute in line with our plans and contribute to the positive profitability development. The profit improvement is mainly achieved through continued strong growth in recurring revenue of 21%, while our costs only increased by 4%.
For the quarter, ACV amounts to SEK 11 million. Thus continue to generate strong growth in ARR. Compared to the previous year, ARR has increased by 22%, corresponding to SEK 73 million, from SEK 333 million to SEK 406 million.
Within Public in both Denmark and Sweden, we made considerable new sales in the quarter. For Sweden, however, we terminated an unprofitable agreement, of SEK 3 million, which of course lowers the ACV. In Denmark, we have now successfully assumed full responsibility for the commitments included in the new agreement with Landbrugsstyrelsen.
Within the Private business area, we and our partners are experiencing a market situation with somewhat longer lead times in sales. Microsoft's ERP offering consists of two different systems, Dynamics 365 Finance and Operations and Dynamics 365 Business Central, respectively. While we have historically won more business with Dynamics 365 Finance and Operations, we are now seeing increased interest in Dynamics 365 Business Central. Also here, Lasernet is a good complement, and we work together with our partners to expand their offer. This affects our ACV within Lasernet in the short term, but will lead to an overall larger addressable market and reach.
We are pleased that our investement in the important US market is starting to have an effect. Our partner
network is growing and we have won a handful of new Dynamics customers in the US this quarter.
In summary, we made a good quarter, completely in line with our plans and we continue towards our longterm financial goals. The strong growth in ARR combined with good cost control provides continuous profitability improvement.
I would like to thank all employees, customers and partners and wish you all a really nice summer. As this is my last quarterly report, I also want to take the opportunity to thank you for my 16 years with Formpipe. It is with pride that I hand over a company that is on the right track in all aspects. As a shareholder, I will continue to follow the company's success going forward and feel comfort with now handing over the helm to Magnus. Thanks to all friends for fantastic years!
Christian Sundin, CEO Formpipe
Financial information
April – June 2023
Net sales for the period increased by 15 % compared to previous year and totalled to SEK 137.5 million (119.6 million). Software revenue increased by 27 % from the previous year and totalled to SEK 102.4 million (80.8 million).
Total recurring revenue for the period increased by 21 % from the previous year and totalled to SEK 94.5 million (78.4 million), which is equivalent to 69 % of net sales (66 %). Exchange rate effects have affected net sales favourably by SEK 6.2 million in comparison with the previous year.
Revenue split, Jan - Jun 2023
January – June 2023
Net sales for the period increased by 11 % compared to previous year and totalled to SEK 265.1 million (239.9 million). Software revenue increased by 20 % from the previous year and totalled to SEK 193.5 million (161.0 million).
Total recurring revenue for the period increased by 18 % from the previous year and totalled to SEK 182.7 million (154.9 million), which is equivalent to 69 % of net sales (65 %). Exchange rate effects have affected net sales favourably by SEK 11.9 million in comparison with the previous year.
Recurring revenue, rolling 12 m, mSEK
Annual recurring revenue (ARR), mSEK
April – June 2023
The operating costs for the period totalled to SEK 124.5 million (119.2 million). Personnel costs totalled to SEK 75.3 million (71.5 million). Selling expenses totalled to SEK 16.3 million (15.8 million). Other costs totalled to SEK 30.5 million (30.7 million). Exchange rate effects have increased expenses by SEK 5.9 million in comparison with the previous year.
Financial information
January – July 2023
The operating costs for the period totalled to SEK 245.1 million (236.0 million). Personnel costs totalled to SEK 148.7 million (143.7 million). Selling expenses totalled to SEK 32.3 million (31.8 million). Other costs totalled to SEK 58.1 million (57.7 million). Exchange rate effects have increased expenses by SEK 11.3 million in comparison with the previous year.
Recurring revenues in relation to fixed operating costs, rolling 12 m, mSEK
April – June 2023
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 29.1 million (14.7 million) with an EBITDA margin of 21.2 % (12.3 %). Operating profit (EBIT) totalled to SEK 12.9 million (0.4 million) with an operating margin of 9.4 % (0.3 %). Net profit totalled to SEK 4.6 million (-0.8 million). Exchange rate effects have affected EBIT favourably by SEK 0.3 million in comparison with the previous year.
January – June 2023
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 52.4 million (31.7 million) with an EBITDA margin of 19.8 % (13.2 %). Operating profit (EBIT) totalled to SEK 20.0 million (3.9 million) with an operating margin of 7.5 % (1.6 %). Net profit totalled
to SEK 9.5 million (0.3 million). Exchange rate effects have affected EBIT favourably by SEK 0.7 million in comparison with the previous year.
Sales and EBITDA margin, mSEK
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 5.0 million (19.5 million). The total accessible funds therefore amounts to SEK 45.0 million (30.5 million).
The company had interest-bearing debt at the end of the period totalling to SEK 40.8 million (68.4 million), whereof SEK 8.2 million (11.4 million) refers to lease debts according to IFRS 16.
The company's net debt position thereby totalled to SEK 40.8 million (68.4 million), which corresponds to a net debt position of SEK 32.5 million (57.0 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 3.9 million (SEK 7.5 million).
Equity
Equity at the end of the period amounted to SEK 479.1 million (420.2 million), which was equivalent to SEK 8.84 (7.75) per outstanding share at the end of
Financial information
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 27.6 million (13.3 million) from the end of the year.
Equity ratio
The equity ratio at the end of the period was 59 % (57 %).
Cash flow from operating activities
Cash flow from operating activities for the period January - June totalled to SEK 16.4 million (7.7 million).
Investments and acquisitions
Total investments for the period January – June amounted to SEK 27.0 million (60.3 million).
Investments in intangible assets totalled to SEK 27.0 million (26.1 million) and refer to capitalized product development costs.
- Investments in tangible and financial assets totalled to SEK 1.3 million (1.3 million).
- Acquisitions of subsidiaries amounted to SEK 0.0 million (32.9 million).
Financing
During the period January – June the company amortized SEK 5.0 million (2.5 million).
The existing bank overdraft facility totalling to SEK 50.0 million was utilized at the end of the period with 5.0 million (19.5 million). Leasing related liabilities amounted to SEK 8.2 million (11.4 million) at the end of the period. The company's interest-bearing debt at the end of the period was thereby SEK 40.8 million (68.4 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 21 percent in the second quarter (Oct-Dec) of Microsoft's fiscal year 2023. 3 Temenos grew its SaaS business by 37 percent in the full year of 2022. 4
4 https:// www.temenos.com/wp-content/uploads/2023/02/Temenos-Q4- 2022-Results-Press-Release-2h9e96fri.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-q2/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.
Employees
The number of employees at the end of the reporting period totalled to 275 persons (287 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
October 25, 2023 Interim report Jan-Sep February 16, 2024 Interim report Jan-Dec
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
Christian Sundin, Managing Director Telephone: +46 70 567 73 85, +46 8 555 290 84 E-mail: [email protected]
Stockholm July 14, 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
| Apr-Jun | Jan-Jun | ||||
|---|---|---|---|---|---|
| (SEK 000) | 2023 | 2022 | 2023 | 2022 | |
| Net Sales | 137 484 | 119 580 | 265 119 | 239 927 | |
| Sales expenses | -16 340 | -15 760 | -32 266 | -31 816 | |
| Other costs | -30 480 | -30 680 | -58 141 | -57 685 | |
| Personnel costs | -75 321 | -71 546 | -148 673 | -143 670 | |
| Capitalized work for own account | 13 740 | 13 085 | 26 391 | 24 966 | |
| Operating profit/loss before depreciation/amortization | |||||
| and non-comparative items (EBITDA) | 29 083 | 14 679 | 52 431 | 31 721 | |
| Depreciation/amortization | -16 142 | -14 298 | -32 425 | -27 809 | |
| Operating profit/loss (EBIT) | 12 941 | 381 | 20 006 | 3 912 | |
| Financial income and expenses | -636 | -374 | -1 244 | -682 | |
| Exchange rate differences | -4 406 | -962 | -5 840 | -367 | |
| Tax | -3 282 | 146 | -3 450 | -2 546 | |
| Net profit for the period | 4 617 | -809 | 9 472 | 317 | |
| Of which the following relates to: | |||||
| Parent company shareholders | 4 617 | -809 | 9 472 | 317 | |
| Other comprehensive income | |||||
| Translation differences | 21 430 | 11 317 | 27 584 | 13 313 | |
| Other comprehensive income for the period, net after tax | 21 430 | 11 317 | 27 584 | 13 313 | |
| Total comprehensive income for the period | 26 047 | 10 508 | 37 056 | 13 629 | |
| Of which the following relates to: | |||||
| Parent company shareholders | 26 047 | 10 508 | 37 056 | 13 629 | |
| EBITDA margin, % | 21,2% | 12,3% | 19,8% | 13,2% | |
| EBIT margin, % | 9,4% | 0,3% | 7,5% | 1,6% | |
| Profit margin, % | 3,4% | -0,7% | 3,6% | 0,1% | |
| Earnings per share attributable to the parent company's shareholders during the period (SEK per share) |
|||||
| - before dilution | 0,09 | -0,01 | 0,17 | 0,01 | |
| - after dilution | 0,09 | -0,01 | 0,17 | 0,01 | |
| Average no. of shares before dilution, in 000 | 54 218 | 54 049 | 54 218 | 54 007 | |
| Average no. of shares after dilution, in 000 | 54 218 | 54 146 | 54 218 | 54 180 |
| 30 Jun | ||||
|---|---|---|---|---|
| (SEK 000) | 2023 | 2022 | 2022 | |
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | ||||
| Capitalized expenditure | 165 617 | 146 710 | 158 251 | |
| Goodwill | 462 311 | 430 812 | 441 367 | |
| Other intangibel assets | 10 992 | 13 897 | 12 695 | |
| Intangible assets | 638 919 | 591 418 | 612 313 | |
| Tangible assets | ||||
| Other equipment & furnitures | 16 159 | 18 491 | 19 231 | |
| Tangibel assets | 16 159 | 18 491 | 19 231 | |
| Financial assets | ||||
| Other financial assets | 1 787 | 1 632 | 1 681 | |
| Other non-current receivables | 1 954 | 2 859 | 2 430 | |
| Financial assets | 3 742 | 4 491 | 4 112 | |
| Non-current receivables | ||||
| Deferred tax assets | 4 080 | 7 477 | 4 003 | |
| Non-current receivables | 4 080 | 7 477 | 4 003 | |
| Non-current assets | 662 900 | 621 877 | 639 658 | |
| Current assets (excl. cash equivalents) | ||||
| Trade receivables | 88 761 | 73 138 | 83 484 | |
| Current tax assets | 21 267 | 21 417 | 16 025 | |
| Other receivables | 43 | 73 | 26 | |
| Prepaid costs and accrued income | 37 178 | 35 287 | 38 570 | |
| 147 250 | 129 914 | 138 105 | ||
| Cash equivalents | 0 | - | 4 781 | |
| TOTAL ASSETS | 810 150 | 751 792 | 782 545 |
| 30 Jun | |||||
|---|---|---|---|---|---|
| (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 | 77 062 | 36 120 | 49 478 | ||
| Retained earnings including profit for the year | 167 414 | 149 499 | 157 942 | ||
| Equity | 479 075 | 420 248 | 442 019 | ||
| LIABILITIES | |||||
| Non-current liabilities | |||||
| Liabilities to credit institutions | 17 500 | 37 500 | 22 500 | ||
| Deferred tax liabilities | 37 628 | 38 335 | 36 060 | ||
| Non-current leasing liabilities | 3 533 | 5 670 | 5 083 | ||
| Non-current liabilities | 58 660 | 81 504 | 63 643 | ||
| Current liabilities | |||||
| Liabilities to credit institutions | 15 035 | 19 523 | 10 000 | ||
| Current leasing liabilities | 4 683 | 5 711 | 6 631 | ||
| Trade liabilities | 25 335 | 21 074 | 34 703 | ||
| Current tax liabilities | 2 001 | 3 511 | - | ||
| Other liabilities | 11 905 | 10 572 | 12 042 | ||
| Accrued expenses and deferred income | 213 508 | 189 649 | 213 508 | ||
| Current liabilities | 272 466 | 250 039 | 276 884 | ||
| Liabilities | 331 127 | 331 544 | 340 526 | ||
| TOTAL EQUITY AND LIABILITIES | 810 150 | 751 792 | 782 545 | ||
| Net interest-bearing debt (-) / cash (+) | -40 751 | -68 403 | -39 432 |
| Equity attributable to the parent company's shareholders | ||||||||
|---|---|---|---|---|---|---|---|---|
| (SEK 000) | Share capital |
Other contributed capital |
Other reserves |
Profit/loss brought forward |
Total | |||
| Balance at January 1, 2021 | 5 373 | 214 501 | 22 808 | 186 958 | 429 640 | |||
| Comprehensive income | ||||||||
| Net profit for the period | - | - | - | 317 | 317 | |||
| Other comprehensive income items | - | - | 13 313 | - | 13 313 | |||
| Total comprehensive income | - | - | 13 313 | 317 | 13 629 | |||
| 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 June 30, 2022 | 5 422 | 229 207 | 36 120 | 149 499 | 420 248 | |||
| Balance at January 1, 2022 | 5 422 | 229 177 | 49 478 | 157 942 | 442 019 | |||
| Comprehensive income | ||||||||
| Net profit for the period | - | - | - | 9 472 | 9 472 | |||
| Other comprehensive income items | - | - | 27 584 | - | 27 584 | |||
| Total comprehensive income | - | - | 27 584 | 9 472 | 37 056 | |||
| Transaction with owners | ||||||||
| Total transaction with owners | - | - | - | - | - | |||
| Balance at June 30, 2023 | 5 422 | 229 177 | 77 062 | 167 414 | 479 075 |
| Apr-Jun | Jan-Jun | |||
|---|---|---|---|---|
| (SEK 000) | 2023 | 2022 | 2023 | 2022 |
| Cash flow from operating activities | ||||
| Operating profit/loss (EBIT) | 12 919 | 381 | 19 993 | 3 912 |
| Items not affecting cash flow | ||||
| - Depreciation | 14 025 | 12 463 | 28 204 | 24 072 |
| - Other items | -7 | -860 | -76 | 6 098 |
| Other items affecting liquidity | ||||
| Interest revenue | 44 | 3 | 92 | 3 |
| Interest expense | -648 | -377 | -1 240 | -686 |
| Realized currency effects | -4 991 | - | -6 442 | - |
| Income tax paid | -779 | 10 883 | -782 | -9 233 |
| Cash flow from operating activities | 20 562 | 22 493 | 39 750 | 24 167 |
| before working capital changes | ||||
| Increase (-) / decrease (+) work in progress | -83 | 391 | 403 | -1 073 |
| Increase (-) / decrease (+) trade receivables | -18 055 | -15 660 | -1 026 | 7 254 |
| Increase (-) / decrease (+) other current receivables | 2 794 | -14 342 | -2 805 | -9 180 |
| Increase (-) / decrease (+) trade payables | 3 253 | 6 870 | -10 241 | -1 412 |
| Increase (-) / decrease (+) current liabillities | -7 109 | -5 171 | -9 697 | -12 093 |
| Cash flow from changes in working capital | -19 200 | -27 913 | -23 366 | -16 505 |
| Cash flow from operating activities | 1 363 | -5 420 | 16 384 | 7 662 |
| Cash flow from investing activities | ||||
| Investment in intangible assets | -13 896 | -13 666 | -26 986 | -26 122 |
| Investment in tangible assets | -958 | -1 081 | -1 259 | -1 328 |
| Investment in financial assets | 263 | - | 475 | - |
| Investment in subsidiaries | -16 | - | - | -32 877 |
| Cash flow from investing activities | -14 607 | -14 747 | -27 770 | -60 327 |
| Cash flow from financing activities | ||||
| New share issue | - | - | - | 10 082 |
| Issue of warrants | - | 6 798 | - | 6 798 |
| Warrant buy-back | - | -2 151 | - | -2 151 |
| Raising och loans | 0 | 19 527 | 0 | 59 527 |
| Repayment of loans | -2 500 | -3 462 | -5 000 | -2 867 |
| Change in bank overdraft facility | 5 035 | -75 | 5 035 | -1 186 |
| Dividend paid | - | -37 776 | - | -37 776 |
| Cash flow from financing activities | 2 535 | -17 138 | 35 | 32 428 |
| Chas flow for the period | -10 710 | -37 305 | -11 351 | -20 237 |
| Currency translation differences for cash | 4 985 | 1 938 | 6 570 | 2 172 |
| Cash and cash equivalent at the beginning of the period | 5 725 | 35 367 | 4 781 | 18 065 |
| Cash and cash equivalent at the end of the period | - | - | - | - |
Financial Tables
| (SEK 000) | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 |
|---|---|---|---|---|---|---|---|---|
| SaaS | 17 038 | 19 427 | 20 832 | 22 192 | 24 481 | 26 254 | 28 113 | 32 135 |
| Support and maintenance | 53 332 | 53 990 | 55 685 | 56 175 | 56 424 | 58 212 | 60 115 | 62 339 |
| Recurring revenue | 70 369 | 73 418 | 76 517 | 78 368 | 80 905 | 84 467 | 88 228 | 94 474 |
| License | 5 255 | 9 923 | 3 691 | 2 437 | 3 426 | 7 012 | 2 836 | 7 924 |
| Software revenues | 75 625 | 83 340 | 80 208 | 80 805 | 84 330 | 91 479 | 91 064 | 102 398 |
| Deliveries | 30 805 | 38 921 | 40 139 | 38 775 | 33 064 | 36 298 | 36 571 | 35 086 |
| Net sales | 106 429 | 122 261 | 120 347 | 119 580 | 117 395 | 127 777 | 127 635 | 137 484 |
| Sales expenses | -12 064 | -15 200 | -16 056 | -15 760 | -16 869 | -18 606 | -15 926 | -16 340 |
| Other costs | -22 327 | -26 879 | -27 005 | -30 680 | -28 089 | -31 211 | -27 661 | -30 480 |
| Personnel costs | -54 945 | -65 486 | -72 124 | -71 546 | -64 971 | -73 690 | -73 352 | -75 321 |
| Capitalized development costs | 12 592 | 13 377 | 11 881 | 13 085 | 13 153 | 15 803 | 12 651 | 13 740 |
| Total operating expenses | -76 745 | -94 189 | -103 305 | -104 901 | -96 776 | -107 703 | -104 288 | -108 401 |
| EBITDA | 29 684 | 28 072 | 17 042 | 14 679 | 20 619 | 20 074 | 23 348 | 29 083 |
| % | 27,9% | 23,0% | 14,2% | 12,3% | 17,6% | 15,7% | 18,3% | 21,2% |
| Depreciation/amortization | -12 584 | -12 046 | -13 511 | -14 298 | -14 525 | -14 361 | -16 283 | -16 142 |
| EBIT | 17 100 | 16 027 | 3 531 | 381 | 6 093 | 5 713 | 7 065 | 12 941 |
| % | 16,1% | 13,1% | 2,9% | 0,3% | 5,2% | 4,5% | 5,5% | 9,4% |
Financial Tables
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.
| Apr-Jun 2023 | Jan-Jun 2023 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | ||||||||||
| (SEK 000) | Public | Public | Private | Other | Group | Public | Public | Private | Other | Group | |||
| SaaS | 4 415 | 3 382 | 24 338 | - | 32 135 | 8 374 | 6 036 | 45 838 | - | 60 248 | |||
| Support & Maintenance | 22 460 | 19 866 | 19 187 | 826 | 62 339 | 44 973 | 37 817 | 37 972 | 1 691 | 122 454 | |||
| Recurring revenue | 26 875 | 23 248 | 43 525 | 826 | 94 474 | 53 347 | 43 853 | 83 811 | 1 691 | 182 702 | |||
| License | 2 020 | 1 477 | 4 427 | - | 7 924 | 3 125 | 1 845 | 5 790 | - | 10 760 | |||
| Sofware revenue | 28 895 | 24 724 | 47 952 | 826 | 102 398 | 56 471 | 45 699 | 89 601 | 1 691 | 193 462 | |||
| Delivery | 11 021 | 19 806 | 4 259 | -0 | 35 086 | 21 610 | 39 909 | 10 139 | -0 | 71 658 | |||
| Net sales | 39 916 | 44 531 | 52 212 | 826 | 137 484 | 78 082 | 85 607 | 99 740 | 1 691 | 265 119 | |||
| Costs, external | |||||||||||||
| -24 602 | -31 440 | -45 235 | -7 124 | -108 401 | -49 322 | -62 651 | -87 408 | -13 308 | -212 689 | ||||
| Intercompany net | 193 | -193 | - | - | - | 236 | -236 | - | - | 0 | |||
| EBITDA | 15 507 | 12 898 | 6 976 | -6 298 | 29 083 | 28 996 | 22 720 | 12 332 | -11 617 | 52 431 | |||
| % | 38,8% | 29,0% | 13,4% | -762,7% | 21,2% | 37,1% | 26,5% | 12,4% | -686,9% | 19,8% |
| Apr-Jun 2022 | Jan-Jun 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | ||||||||
| (SEK 000) | Public | Public | Private | Other Koncern | Public | Public | Private | Other Koncern | |||
| SaaS | 3 648 | 1 933 | 16 612 | - | 22 192 | 7 164 | 3 766 | 32 095 | - | 43 025 | |
| Support & Maintenance | 21 284 | 15 839 | 18 088 | 964 | 56 175 | 42 201 | 31 418 | 36 290 | 1 952 | 111 860 | |
| Recurring revenue | 24 932 | 17 773 | 34 699 | 964 | 78 368 | 49 364 | 35 184 | 68 385 | 1 952 | 154 885 | |
| License | 500 | 813 | 1 124 | - | 2 437 | 1 513 | 884 | 3 731 | - | 6 128 | |
| Sofware revenue | 25 432 | 18 586 | 35 823 | 964 | 80 805 | 50 877 | 36 068 | 72 116 | 1 952 | 161 013 | |
| Delivery | 11 808 | 19 395 | 7 572 | -0 | 38 775 | 21 461 | 42 270 | 15 183 | -0 | 78 914 | |
| Net sales | 37 240 | 37 981 | 43 395 | 964 | 119 580 | 72 338 | 78 338 | 87 299 | 1 952 | 239 927 | |
| Costs, external | -24 844 | -28 369 | -43 020 | -8 677 | -104 910 | -52 534 | -57 415 | -83 379 | -14 880 | -208 209 | |
| Intercompany net | 232 | -234 | 10 | - | 9 | 286 | -287 | 3 | - | 3 | |
| EBITDA | 12 628 | 9 378 | 386 | -7 713 | 14 679 | 20 091 | 20 635 | 3 923 | -12 928 | 31 721 | |
| % | 33,9% | 24,7% | 0,9% | -800,1% | 12,3% | 27,8% | 26,3% | 4,5% | -662,5% | 13,2% |
| Apr-Jun 2023 | Jan-Jun 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | |||||||
| (Mkr) | Public | Public | Private | Other | Group | Public | Public | Private | Other | Group |
| ARR In - SaaS | 22,9 | 15,4 | 95,1 | - | 133,5 | 22,9 | 13,2 | 88,9 | - | 125,0 |
| ARR In - Support & Maint. | 89,0 | 82,9 | 74,4 | 2,8 | 249,2 | 89,1 | 76,9 | 75,2 | 3,0 | 244,3 |
| ARR In - FX | - | 4,3 | 7,8 | - | 12,1 | - | 5,4 | 9,4 | - | 14,8 |
| ARR In* | 111,9 | 102,6 | 177,4 | 2,8 | 394,8 | 112,0 | 95,6 | 173,5 | 3,0 | 384,1 |
| ACV - SaaS | -0,1 | 5,1 | 3,9 | - | 8,9 | -0,1 | 7,1 | 9,2 | - | 16,2 |
| ACV - Support & Maintenance | 0,1 | 1,8 | 0,3 | -0,2 | 2,0 | 0,0 | 6,8 | -1,1 | -0,4 | 5,3 |
| ACV - Net | -0,0 | 6,9 | 4,1 | -0,2 | 10,8 | -0,1 | 13,9 | 8,1 | -0,4 | 21,5 |
| ARR Out - SaaS | 22,8 | 21,2 | 103,4 | - | 147,4 | 22,8 | 21,2 | 103,4 | - | 147,4 |
| ARR Out - Support & Maint. | 89,1 | 88,4 | 78,1 | 2,6 | 258,2 | 89,1 | 88,4 | 78,1 | 2,6 | 258,2 |
| ARR Out | 111,9 | 109,6 | 181,5 | 2,6 | 405,6 | 111,9 | 109,6 | 181,5 | 2,6 | 405,6 |
| Apr-Jun 2022 | Jan-Jun 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | |||||||
| (Mkr) | Public | Public | Private | Other Koncern | Public | Public | Private | Other Koncern | ||
| ARR In - SaaS | 16,6 | 10,0 | 65,8 | - | 92,3 | 16,1 | 8,7 | 59,9 | - | 84,7 |
| ARR In - Support & Maint. | 85,6 | 61,4 | 71,9 | 3,5 | 222,4 | 84,3 | 60,1 | 71,1 | 3,7 | 219,2 |
| ARR In - FX | - | 2,4 | 5,3 | - | 7,8 | - | 3,2 | 6,7 | - | 9,9 |
| ARR In | 102,2 | 73,8 | 143,0 | 3,5 | 322,5 | 100,4 | 72,0 | 137,7 | 3,7 | 313,7 |
| ACV - SaaS | 2,4 | 1,6 | 5,8 | - | 9,8 | 2,9 | 2,7 | 11,1 | - | 16,7 |
| ACV - Support & Maintenance | 2,0 | -1,3 | -0,4 | -0,1 | 0,2 | 3,3 | -0,5 | -0,4 | -0,2 | 2,1 |
| ACV - Net | 4,4 | 0,3 | 5,4 | -0,1 | 10,0 | 6,2 | 2,2 | 10,7 | -0,2 | 18,8 |
| ARR Out - SaaS | 19,0 | 11,9 | 73,8 | - | 104,7 | 19,0 | 11,9 | 73,8 | - | 104,7 |
| ARR Out - Support & Maint. | 87,6 | 62,3 | 74,5 | 3,5 | 227,9 | 87,6 | 62,3 | 74,5 | 3,5 | 227,9 |
| ARR Out | 106,6 | 74,1 | 148,4 | 3,5 | 332,5 | 106,6 | 74,1 | 148,4 | 3,5 | 332,5 |
| 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 | 2023-06-30 | |
| 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 |
Financial Tables
| Jan-Jun | ||
|---|---|---|
| 2023 | 2022 | |
| Employees at end of period | 275 | 287 |
| Net sales, SEK 000 | 265 119 | 239 927 |
| EBITDA, SEK 000 | 52 431 | 31 721 |
| EBIT, SEK 000 | 20 006 | 3 912 |
| Net profit for the period, SEK 000 | 9 472 | 317 |
| EBITDA margin, % | 19,8% | 13,2% |
| EBIT margin, % | 7,5% | 1,6% |
| Profit margin, % | 3,6% | 0,1% |
| Return on equity, %* | 4,0% | 5,8% |
| Return on working capital, %* | 6,4% | 8,2% |
| Equity ratio, % | 59% | 57% |
| Equity per outstanding share at the end of the period, SEK | 8,84 | 7,75 |
| Earnings per share - before dilution, SEK | 0,17 | 0,01 |
| Earnings per share - after dilution, SEK | 0,17 | 0,01 |
| Share price at the end of the period, SEK | 26,20 | 28,90 |
* Ratios including P&L measures are based on the most recent 12-month period
| Apr-Jun | Jan-Jun | |||||
|---|---|---|---|---|---|---|
| (SEK 000) | 2023 | 2022 | 2023 | 2022 | ||
| Net sales | 42 573 | 34 600 | 83 083 | 66 586 | ||
| Operating expenses | ||||||
| Sales expenses | -3 536 | -4 004 | -6 693 | -5 796 | ||
| Other costs | -16 473 | -16 566 | -31 374 | -30 009 | ||
| Personnel costs | -24 092 | -22 423 | -46 643 | -45 704 | ||
| Depreciation/amortization | -1 247 | -867 | -2 471 | -1 719 | ||
| Total operating expenses | -45 348 | -43 860 | -87 181 | -83 227 | ||
| Operating profit/loss | -2 775 | -9 260 | -4 098 | -16 642 | ||
| Result from participations in group companies | - | 466 | 70 | 466 | ||
| Other financial items | -5 694 | -3 698 | -6 755 | -4 538 | ||
| Tax | -315 | - | -627 | - | ||
| Net profit for the period | -8 784 | -12 492 | -11 409 | -20 714 | ||
| 30 Jun | 31 Dec |
| 30 Jun | |||
|---|---|---|---|
| (SEK 000) | 2023 | 2022 | 2022 |
| Intangible assets | 39 808 | 8 892 | 41 124 |
| Tangible assets | 1 703 | 1 001 | 2 012 |
| Financial assets | 347 197 | 385 897 | 347 674 |
| Deferred tax asset | 2 880 | 2 249 | 2 880 |
| Current assets (excl. cash equivalents) | 98 684 | 87 347 | 109 483 |
| Cash and bank balances | - | - | 4 073 |
| TOTAL ASSETS | 490 272 | 485 385 | 507 246 |
| Restricted equity | 23 113 | 23 113 | 23 113 |
| Non-restricted equity | 185 869 | 183 320 | 197 149 |
| Total equity | 208 982 | 206 433 | 220 262 |
| Long-term liabilities | 17 535 | 27 500 | 23 209 |
| Current liabilities | 263 755 | 251 452 | 263 775 |
| TOTAL EQUITY AND LIABILITIES | 490 272 | 485 385 | 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 Jun | 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]