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Formpipe Software

Earnings Release Apr 28, 2021

3159_10-q_2021-04-28_d15ac6da-ea5c-4cd3-ace8-3a54610d693b.pdf

Earnings Release

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Q1 2021.

First quarter 2021 results

Net sales of SEK 102 m (103 m)
Recurring revenues of SEK 66 m (61 m)
which corresponds to % of net sales 65 % (59 %)
EBITDA SEK 20 m (27 m)
EBITDA margin 19 % (26 %)
EBIT 6 m (15 m)
EBIT margin 6 % (14 %)
Net profit SEK 4 m (11 m)
Net profit margin 4 % (11 %)
EPS before dilution SEK 0.08 (0.21)
Cash flow from operating activities SEK 6 m (26 m)
ACV SEK 11 m (7 m)
ARR SEK 271 m (235 m)
Jan-Mar Full year
(SEK Million) 2021 2020 R12 2020
Net sales 101.5 103.1 401.6 403.1
whereof recurring revenue 66.4 60.8 259.1 253.5
EBITDA 19.6 27.1 96.8 104.3
Margin, % 19% 26% 24% 26%
EBIT 5.7 14.8 44.2 53.3
Margin, % 6% 14% 11% 13%

A steady start in line with the new strategy.

During the first quarter of the year, according to plan Formpipe shows sales growth of 18 percent in the Private business area, driven by an increased share of recurring revenue compared with the previous year and continued good demand for SaaS. Our ACV development is a clear sign of our sales success. For the quarter, ACV amounts to SEK 11 million, compared with SEK 7 million in the first quarter last year.

"During the first quarter of the year, we are progressing according to plan and expect development in line with the growth strategy presented in connection with the financial statements for 2020."

The public sector is also developing in line with our expectations. The ongoing pandemic continues to make an impression in the segment and compared with an unusually strong first quarter last year, sales are declining. A contributing factor to the lower sales is declining delivery revenues in both Sweden and Denmark while software revenues are growing. During the quarter, we delivered a couple of new projects with a lower delivery share and higher SaaS content, which benefits us in the long term but has a short-term negative effect on delivery revenues. We have also presented a new deal with the Danish Landbrugsstyrelsen (Board of Agriculture) that ensures stable deliveries to this customer for several years to come.

Our strategy in the Private business area is based on scaling up our capacity to sell and deliver Lasernet, which means initial investments in 2021. We have succeeded well in recruiting expertise to be able to meet the demand for our products in both the private and public sectors. At the end of the quarter, we were 261 persons, compared with 219 in the same quarter last year, and we continue to grow. During the first quarter of the year, we are progressing according to plan and expect development in line with the growth strategy presented in connection with the financial statements for 2020.

Christian Sundin, CEO Formpipe

Financial Information

January-March 2021

Net sales for the period decreased by 2 % compared to previous year and totalled to SEK 101.5 million (103.1 million). Software revenue increased by 6 % from the previous year and totalled to SEK 72.7 million (68.3 million). Total recurring revenue for the period increased by 9 % from the previous year and totalled to SEK 66.4 million (60.8 million), which is equivalent to 65 % of net sales (59 %). Exchange rate effects have affected net sales negatively by SEK 3.6 million in comparison with the previous year.

Revenue split, Jan-Mar 2021

Recurring revenue, rolling 12 m, mSEK

Annual recurring revenue (ARR), mSEK

January-March 2021

The operating costs for the period totalled to SEK 95.8 million (88.3 million). Personnel costs totalled to SEK 63.2 million (54.9 million). Selling expenses totalled to SEK 12.0 million (11.2 million). Other costs totalled to SEK 19.7 million (19.0 million).

Recurring revenues in relation to fixed operating costs, rolling 12 m, mSEK

Financial Information

January-March 2021

Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 19.6 million (27.1 million) with an EBITDA margin of 19.3 % (26.3 %). Operating profit (EBIT) totalled to SEK 5.7 million (14.8 million) with an operating margin of 5.6 % (14.4 %). Net profit totalled to SEK 4.4 million (11.3 million). Exchange rate effects have affected EBITDA negatively by SEK 0.4 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 46.4 million (43.5 million). The company had interest-bearing debt at the end of the period totalling to SEK 59.4 million (26.3 million), whereof 19.1 million (26.3 million) refers to lease debts according to IFRS 16. The company's total bank overdraft limit amounts to SEK 50.0 million, at the end of the period it was not utilized (- million).

The company's net debt position thereby totalled to SEK 13.0 million (-17.2 million), which corresponds to a net cash position of SEK 6.1 million (43.5 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 5.4 million (SEK 9.1 million).

Equity

Equity at the end of the period amounted to SEK 416.4 million (430.1 million), which was equivalent to SEK 7.79 (8.09) 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 13.2 million (18.7 million) from the end of the year.

Equity ratio

The equity ratio at the end of the period was 57 % (63 %).

Cash flow from operating activities

Cash flow from operating activities for the period January - March totalled to SEK 6.4 million (26.1 million). Due to increased working capital tied up, the cash flow has been affected negatively compared to previous periods.

Investments and acquisitions

  • Total investments for the period January March amounted to SEK 16.0 million (10.5 million).
  • Investments in intangible assets totalled to SEK 15.0 million (9.6 million) and refer to capitalized product development costs.
  • Investments in tangible and financial assets totalled to SEK 1.0 million (0.9 million).

Financing

During the period January – March the company has amortized DKK 2.6 million on loan in DKK. The outstanding loan amounts to DKK 29.1 million at the end of the period, which is equivalent to SEK 39.9 million.

During the period January – March the company amortized SEK 6.2 million (6.9 million). Whereof SEK 2.7 million relates to leasing debts.

The existing bank overdraft facility totalling to SEK 50.0 million was not utilized at the end of the period

Financial Information

(SEK - million). Leasing related liabilities amounted to SEK 19.1 million (26.3 million) at the end of the period. The company's interest-bearing debt at the end of the period was thereby SEK 59.4 million (26.3 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, re-ports, 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 per cent 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. From 2017 Formpipe has had an average annual SaaS revenues growth of 55 percent.

Private sector

The global ERP software market is estimated to reach USD 50 billion in 20243 . As cloud solutions are becoming increasingly accepted due to their scalability, reliability and flexibility, many ERP customers are changing their views on their internal IT architecture. This shift, where customers see the benefits of moving to the cloud, opens up new opportunities for Formpipe. Lasernet is an add-on to ERP systems and enables business documents to be delivered in exactly the format and layout desired. Lasernet continues its strong growth internationally, a positive development that is primarily a result of Formpipe's close collaboration with Microsoft and their offering in the cloud (Azure) regarding Microsoft Dynamics. Lasernet is a natural add-on to Dynamics and improves the customer experience through efficient document management.

Through the acquisition of EFS, Formpipe has further strengthened its position in this area as EFS product Autoform DM together with Lasernet is a valuable add-on to business systems from Temenos, a wellestablished and increasingly strong system supplier to the financial sector.

Public Sector

Formpipe has a leading market position in the public sector in both Sweden and Denmark. For many

1 Enterprise Application Software Forecast Q420, Gartner, Inc. 2020

2 Market Trends: Cloud Shift — 2020 Through 2024, Gartner, Inc. 2020

3 Enterprise Application Software Forecast Q420, Gartner, Inc. 2020

Market

years, we have delivered systems for automated processes for case and document management.

In the Swedish public sector, Formpipe has a stable customer base in municipalities, regions and authorities. In the public sector Sweden, up to SEK 45 billion is invested in IT every year4 . The Swedish government's ambition is for state authorities, municipalities and regions to be the best in the world at using the opportunities of digitalization to create an efficient public sector – a simpler everyday life for 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 information management 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 modernization and digitalization of the public sector can free up DKK 20 billion by 20255 . Money that can then be returned to the public sector and help increase the level of service.

4 Regeringen.se 5 www.danskindustri.dk

Significant events

New growth strategy and financial targets

The new strategy captures opportunities to deliver on a number of markets with the self-developed and successful product Lasernet. Investments in growth will primarily take place through capacity building with focus on the USA and Europe. The build-up phase provides a not insignificant short-term negative margin impact before reaching the goals.

Financial targets:

  • The average annual revenue growth will amount to 10 percent 2021 – 2025
  • 70 percent of total revenue will consist of recurring revenue by 2025
  • The operating margin will gradually be strengthened and exceed 20 percent in 2025
  • Over time, at least 50 percent of the year's net income will be distributed as dividends to our shareholders

Formpipe and Danish Landbrugsstyrelsen intends to sign agreement worth approximately DKK 50 million

Formpipe and Danish Landbrugsstyrelsen (Board of Agriculture) have agreed to sign an agreement on further development of the solution that Formpipe for several years has developed on behalf of Landbrugsstyrelsen. The agreement will run for two years and the value is estimated at approximately DKK 50 Million. Within the framework of the agreement, Landbrugsstyrelsen acquires the right to procure continued operation and development via third party after June 2023.

Employees

The number of employees at the end of the reporting period totalled to 262 persons (219 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

April 28, 2021 Annual General Meeting
July 15, 2021 Interim report Jan-Jun
October 29, 2021 Interim report Jan-Sep

This interim report has not been subject to review by the company's auditors.

With the support of temporary statutory rules, the Annual General Meeting will be held on April 28, 2021 by mail vote only.

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 28th of April, 2021 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

Text Jan-Mar
(SEK 000) 2021 2020
Net Sales 101,540 103,093
Sales expenses
Other costs
-12,018 -11,210
Personnel costs -19,690 -19,037
Capitalized work for own account -63,218 -54,870
12,948 9,148
Operating profit/loss before depreciation/amortization
and non-comparative items (EBITDA)
19,563 27,122
Depreciation/amortization -13,831 -12,302
Operating profit/loss (EBIT) 5,732 14,820
Financial income and expenses -350 -195
Exchange rate differences 156 63
Tax -1,188 -3,404
Net profit for the period 4,350 11,285
Of which the following relates to:
Parent company shareholders 4,350 11,285
Other comprehensive income
Translation differences 13,181 18,673
Other comprehensive income for the period, net after tax 13,181 18,673
Total comprehensive income for the period 17,532 29,958
Of which the following relates to:
Parent company shareholders 17,532 29,958
EBITDA margin, % 19.3% 26.3%
EBIT margin, % 5.6% 14.4%
Profit margin, % 4.3% 10.9%
Earnings per share attributable to the parent company's shareholders during the period (SEK per share)
- before dilution 0.08 0.21
- after dilution 0.08 0.21
Average no. of shares before dilution, in 000 53,343 53,174
Average no. of shares after dilution, in 000 53,549 53,269

Financial Tables

31 Mar 31 Dec
(SEK 000) 2021 2020 2020
Intangible assets 538,847 490,700 523,623
Tangible assets 26,004 33,179 27,138
Financial assets 6,437 4,545 3,284
Deferred tax asset 5,381 9,121 3,645
Current assets (excl. cash equivalents) 106,754 97,346 104,235
Cash equivalents 46,402 43,500 58,593
TOTAL ASSETS 729,825 678,391 720,517
Equity 416,396 430,087 398,865
Long-term liabilities 68,973 47,944 71,145
Current liabilities 244,455 200,360 250,507
TOTAL EQUITY AND LIABILITIES 729,825 678,391 720,517
Net interest-bearing debt (-) / cash (+) -13,032 17,163 -5,594
Equity attributable to the parent company's shareholders
Share Other
contributed
Other Profit/loss
brought
(SEK 000) capital capital reserves forward Total
Balance at January 1, 2020 5,317 208,600 23,712 162,498 400,129
Comprehensive income - - - - -
Net profit for the period - - - 11,285 11,285
Other comprehensive income items - - 18,673 - 18,673
Total comprehensive income - - 18,673 11,285 29,958
Transaction with owners
Total transaction with owners - - - - -
Balance at March 31, 2020 5,317 208,600 42,385 173,783 430,087
Balance at January 1, 2021 5,346 212,644 9,066 171,807 398,865
Comprehensive income - - - - -
Net profit for the period - - - 4,350 4,350
Other comprehensive income items - - 13,185 - 13,181
Total comprehensive income - - 13,185 4,350 17,532
Transaction with owners
Total transaction with owners - - - - -
Balance at March 31, 2021 5,346 212,644 22,248 176,158 416,396
Jan-Mar
(SEK 000) 2021 2020
Cash flow from operating activities
before working capital changes 26,067 21,681
Cash flow from working capital changes -19,711 4,373
Cash flow from operating activities 6,356 26,054
Cash flow from investing activities -15,506 -10,545
Cash flow from financing activities -6,177 -7,278
Cash flow for the period -15,327 8,231
Change in cash and cash equivalent
Cash and cash equivalent at the beginning of the period 58,593 33,682
Translation differences 3,137 1,586
Cash flow for the period -15,327 8,231
Cash and cash equivalent at the end of the period 46,402 43,500
(SEK 000) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
License 11,629 4,678 10,157 7,508 10,235 5,817 8,971 6,324
SaaS 10,728 11,532 12,323 12,884 13,373 13,755 14,571 14,171
Support and maintenance 45,671 46,241 46,705 47,952 48,849 49,552 52,592 52,214
Software revenues 68,029 62,450 69,185 68,344 72,457 69,123 76,134 72,709
whereof recurring revenue 56,399 57,773 59,028 60,836 62,222 63,307 67,163 66,385
Deliveries 33,461 29,975 33,874 34,749 27,839 27,260 27,219 28,832
Net sales 101,490 92,425 103,059 103,093 100,296 96,383 103,353 101,540
Sales expenses -12,836 -9,924 -12,918 -11,210 -10,270 -9,718 -10,083 -12,018
Other costs -18,806 -20,143 -17,220 -19,037 -19,116 -19,042 -20,401 -19,690
Personnel costs -53,900 -47,885 -52,979 -54,870 -56,256 -50,192 -58,794 -63,218
Capitalized development costs 9,065 9,811 8,430 9,148 9,593 9,606 11,860 12,948
Total operating expenses -76,478 -68,140 -74,687 -75,970 -76,048 -69,346 -77,419 -81,977
EBITDA 25,012 24,285 28,372 27,122 24,248 27,037 25,935 19,563
% 24.6% 26.3% 27.5% 26.3% 24.2% 28.1% 25.1% 19.3%
Depreciation/amortization -13,528 -13,065 -13,059 -12,302 -12,479 -13,075 -13,235 -13,831
EBIT 11,484 11,220 15,314 14,820 11,769 13,962 12,699 5,732
% 11.3% 12.1% 14.9% 14.4% 11.7% 14.5% 12.3% 5.6%

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. The Group has adjusted the segment overview for financial year 2020.

Jan-Mar 2021
SE DK
(SEK 000) Public Public Private Other Group
License 4,049 - 2,275 - 6,324
SaaS 3,338 1,517 9,316 - 14,171
Support & Maintenance 19,785 14,497 16,851 1,081 52,214
Delivery 4,176 17,390 7,265 0 28,832
Net sales 31,347 33,404 35,708 1,081 101,540
Costs, external -19,717 -23,783 -33,768 -4,709 -81,977
Intercompany net -18 18 -0 - -
EBITDA 11,612 9,639 1,941 -3,628 19,563
% 37.0% 28.9% 5.4% -335.7% 19.3%
Jan-Mar 2020
SE DK
(SEK 000) Public Public Private Other Group
License 748 2,227 4,532 - 7,508
SaaS 4,396 1,553 6,936 - 12,884
Support & Maintenance 19,821 12,632 14,315 1,183 47,952
Delivery 4,768 25,510 4,470 1 34,749
Net sales 29,732 41,923 30,253 1,184 103,093
Costs, external -16,835 -28,664 -26,274 -4,198 -75,970
Intercompany net 134 -62 -72 - -
EBITDA 13,032 13,197 3,907 -3,014 27,122
% 43.8% 31.5% 12.9% -254.6% 26.3%

Financial Tables

Jan-Mar 2021
SE DK
(Mkr) Public Public Private Other Group
ARR In - SaaS* 13.3 5.9 35.4 - 54.7
ARR In - Support & Maint.* 81.6 51.5 68.3 4.0 205.5
ARR In 95.0 57.5 103.7 4.0 260.1
ARR - FX - 1.7 1.7 - 3.4
ACV - SaaS -0.5 0.4 4.6 - 4.5
ACV - Support & Maintenance 1.4 1.4 -0.1 -0.1 2.7
ACV - Net 0.9 3.5 6.3 -0.1 10.6
ARR Out - SaaS 12.8 6.4 40.6 - 59.8
ARR Out - Support & Maint. 83.1 54.6 69.3 3.9 210.9
ARR Out 95.9 60.9 110.0 3.9 270.7
Jan-Mar 2020
SE DK
(Mkr) Public Public Private Other Group
ARR In - SaaS 12.7 6.2 26.1 - 45.0
ARR In - Support & Maint. 79.0 41.9 57.4 4.5 182.7
ARR In 91.6 48.1 83.5 4.5 227.7
ARR - FX - 2.0 3.2 - 5.2
ACV - SaaS 0.9 -1.3 1.1 - 0.7
ACV - Support & Maintenance 0.7 0.2 0.5 -0.0 1.3
ACV - Net 1.6 0.9 4.7 -0.0 7.2
ARR Out - SaaS 13.6 5.3 28.6 - 47.5
ARR Out - Support & Maint. 79.7 43.7 59.6 4.4 187.4
ARR Out 93.3 49.0 88.2 4.4 234.9

* Contracts with a total ARR of 3,8 mSEK have been reclassified from SaaS to Support & Maintenance as per January 1, 2021, due to the stipulations in governing framework agreement in DK Public.

2017-01-01 2018-01-01 2019-01-01 2020-01-01 2021-01-01
2017-12-31 2018-12-31 2019-12-31 2020-12-31 2021/03/31
Shares outstanding beginning of the period 51,273,608 51,873,025 52,887,406 53,173,907 53,463,907
Share issue from warrant programme 599,417 314,576 286,501 290,000 0
Non-cash issue 0 699,805 0 0 0
Shares outstanding at the end of the period 51,873,025 52,887,406 53,173,907 53,463,907 53,463,907
Jan-Mar
2021 2020
Employees at end of period 262 219
Net sales, SEK 000 101,540 103,093
EBITDA, SEK 000 19,563 27,122
EBIT, SEK 000 5,732 14,820
Net profit for the period, SEK 000 4,350 11,285
EBITDA margin, % 19.3% 26.3%
EBIT margin, % 5.6% 14.4%
Profit margin, % 4.3% 10.9%
Return on equity, %* 8.5% 9.6%
Return on working capital, %* 11.2% 13.0%
Equity ratio, % 57.1% 63.4%
Equity per outstanding share at the end of the period, SEK 7.79 8.09
Earnings per share - before dilution, SEK 0.08 0.21
Earnings per share - after dilution, SEK 0.08 0.21
Share price at the end of the period, SEK 31.00 17.46
* Ratios including P&L measures are based on the most recent 12-month period
Jan-Mar
(SEK 000) 2021 2020
Net sales 33,142 34,317
Operating expenses - -
Sales expenses -1,673 -1,222
Other costs -10,603 -9,323
Personnel costs -21,452 -17,622
Depreciation/amortization -615 -1,536
Total operating expenses -34,343 -29,703
Operating profit/loss -1,200 4,613
Other financial items -1,100 -121
Tax - -
Net profit for the period -2,300 4,492
31 Mar 31 Dec
31 Mar
(SEK 000) 2021 2020 2020
Intangible assets 8,411 9,338 6,851
Tangible assets 1,076 909 981
Financial assets 349,557 278,483 346,446
Current assets (excl. cash equivalents) 39,684 51,785 44,787
Cash and bank balances 22,470 22,847 30,666
TOTAL ASSETS 421,197 363,363 429,732
Restricted equity 23,037 23,008 23,037
Non-restricted equity 165,097 195,569 167,398
Total equity 188,135 218,577 190,435
Long-term liabilities 25,330 - 29,434
Current liabilities 207,733 144,786 209,863
TOTAL EQUITY AND LIABILITIES 421,197 363,363 429,732

Pledged assets referred to shares in subsidiaries as security for loans. The pledged assets in the Group was the same as disclosed for the Parent Company

31 Mar 31 Dec
(SEK 000) 2021 2020 2020
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 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, acquisition-related 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, acquisition-related 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).

Definitions

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]

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