Quarterly Report • Oct 23, 2018
Quarterly Report
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| Jul-Sep | Jan-Sep | Rolling 12 | Full year | |||
|---|---|---|---|---|---|---|
| (SEK Million) | 2018 | 2017 | 2018 | 2017 | months | 2017 |
| Net sales | 95,6 | 88,0 | 296,9 | 279,8 | 407,3 | 390,2 |
| whereof recurring revenue | 56,3 | 49,9 | 163,2 | 143,6 | 214,5 | 194,8 |
| EBITDA | 25,6 | 22,1 | 72,4 | 59,9 | 98,3 | 85,8 |
| EBITDA-adj | 16,9 | 13,3 | 47,6 | 31,5 | 64,9 | 48,9 |
| EBIT - excluding items affecting comparability | 13,9 | 11,1 | 37,1 | 21,7 | 52,6 | 37,3 |
| EBIT | 13,9 | 11,1 | 37,1 | 23,0 | 51,7 | 37,7 |
Just as last year we can present a strong profit for the quarter even though our customer's activity are usually low during the summer months. We can thereby continue our positive trend and present improved margins. It is mainly the growth in recurring revenue that enables the steady improvement of our margins, which is in line with our strategy.
As a significant part of our business operations is in Denmark, the weakening of the Swedish krona has had a positive currency effect on the period's figures against our comparative figures. Since we have both income and costs in Denmark, a form of natural currency hedging occurs, and thus the effect on the earnings is limited. Despite the significant effect on net sales.
Our closer cooperation with Microsoft continues to be successful and our presence in AppSource has generated several new business deals for our product Lasernet.
During the quarter we have conducted our annual Customer Days Conference in both Denmark and Sweden with a record number of participants. The interest in the benefits from digitalization continues to increase and together with our customers we keep finding areas we jointly can create increased social benefits.
Enterprise content management (ECM) is used to create, store, distribute, discover, archive and manage digital content (such as scanned documents, email, reports, medical images and office documents), and ultimately analyze usage to enable organizations to deliver relevant content to users where and when they need it. It is in the ECM market that Formpipe has emerged as the market leader in the public sector, as a challenger in e.g. life sciences and legal as well as cross-industry for parts of the product range.
Growth in the ECM market is fueled in large part by the organizational and corporate wide need to streamline operations and meet legal requirements and regulations. Making business value from the information requires applications and services to search, analyze, process and
distribute data and content. Growth drivers continually gain strength as the sheer amount of data and information increases and ECM remains a highly prioritized investment area. Gartner's forecast on ECM software revenue is a Compound Annual Growth Rate of 8.3 %, 2018-2021. The ECM market is large and fragmented, with a total addressable market (systems revenue) of 8.0 billion dollars in 2018 (Source: Gartner, Enterprise Software Markets, Worldwide, 2013-2020, 4Q16 update).
The ECM market is changing from the centralized, backend, command and control of unstructured content to integrated, purpose-built, cloud based solutions that prioritizes content usability, processing and analyzing content from one or several sources, to get business insights and business value. Control, file synchronization and sharing will be a standard capability of ECM offerings.
This change is well in line with the Formpipe's strategy, as more and more of the company's customers choose to switch to cloud solutions for the standard products, as well as with the company development of applications and modules with the ability to process information from both Formpipe's existing systems or from other systems.
The development for ECM software is towards cloud based solutions and Gartner predicts that at least 50% of the leading ECM software providers will have rearchitected their offerings to cloud based platform by the end of 2018. But even if the trend is towards the cloud, the license revenues from on-premise will play an important role for years to come.
Case and Document Management is about managing documents and information in cooperation, over functional boundaries, with version management, management of rights, traceability and automation of the work flows. This provides lower costs, minimized risk exposure and structured information. In the area of Case and Document Management, Formpipe addresses the public sector in Sweden and Denmark, as well as the industries of Life Science and Legal.
Grants Management automates the whole life cycle for applications and grants for both grant funding bodies and recipients, from requests for proposals by the program to measurement and reporting of the outcome of the effort. Formpipes Grants Management products are currently sold to the public sector and it is the leading system with national authorities.
With CCM products, content is produced, individualized, formatted and distributed from different systems and data sources to the format that best suits the company in its communication with customers or other business partners. Formpipe's CCM product Lasernet is mainly tied to sales of ERP systems
Structured data archiving is the ability to index and move important operating data from active business systems, or systems being discontinued. It provides control and makes the data available in its context, reduces storage costs and the amount of data in the daily production environment. Formpipe's product Long-Term Archive is currently sold to the public sector in Sweden where there is a high level of activity.
Formpipe is well-positioned to be able to develop and strengthen its leading position as ECM provider while retaining good profitability levels. The company sees good opportunities to continue to utilize its experience from its successes in order to target new markets and customer segments. A solid product development and product strategy creates good conditions to be able to efficiently develop market-leading offerings and meet up with sector-specific requirements also in the future.
The board believes that Formpipe, which is one of the largest European-based ECM suppliers, is wellpositioned with a stabile customer base, a high share of recurring revenue and a focus on customer segments with a high need for ECM solutions.
1 Source: Gartner, Enterprise Software Markets, Worldwide, 2014-2021, 4Q17 Update
Net sales for the period totalled to SEK 95.6 million (88.0 million), which corresponds to an increase of 9 %. Software revenue increased by 14 % from the previous year and totalled to SEK 64.8 million (56.7 million). Total recurring revenue for the period increased by 13 % from the previous year and totalled to SEK 56.3 million (49.9 million), which is equivalent to 59 % of net sales (57 %). Exchange rate effects have affected net sales positively by SEK 3.5 million in comparison with the previous year.
Net sales for the period totalled to SEK 296.9 million (279.8 million), which corresponds to an increase of 6 %. Software revenue increased by 10 % from the previous year and totalled to SEK 197.2 million (179.9 million). Total recurring revenue for the period increased by 14 % from the previous year and totalled to SEK 163.2 million (143.6 million), which is equivalent to 55 % of net sales (51 %). Exchange rate effects have affected net sales positively by SEK 10.7 million in comparison with the previous year.
The operating costs for the period increased by 6 % and totalled to SEK 81.8 million (76.9 million). Personnel costs increased by 4 % and totalled to SEK 48.3 million (46.4 million). Selling expenses totalled to SEK 13.2 million (12.8 million). Other costs totalled to SEK 17.2 million (15.5 million).
The operating costs for the period increased by 1 % and totalled to SEK 259.8 million (258.0 million). Personnel costs increased by 1 % and totalled to SEK 156.8 million (155.0 million). Selling expenses totalled to SEK 37.4 million (41.5 million). Other costs totalled to SEK 55.1 million (51.7 million).
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 25.6 million (22.1 million) with an EBITDA margin of 26.8 % (25.1 %). Operating profit (EBIT) totalled to SEK 13.9 million (11.1 million) with an operating margin of 14.5 % (12.7 %). Net profit totalled to SEK 10.1 million (6.5 million). Exchange rate effects have affected EBITDA positively by SEK 0.8 million in comparison with the previous year.
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 72.4 million (SEK 59.9 million) with an EBITDA margin of 24.4 % (21.4 %). Operating profit (EBIT) totalled to SEK 37.1 million (23.0 million) with an operating margin of 12.5 % (8.2 %). Net profit totalled to SEK 27.4 million (14.4 million). Exchange rate effects have affected EBITDA positively by SEK 2.2 million in comparison with the previous year.
Cash and cash equivalents at the end of the period amounted to SEK 79.1 million (36.4 million). The company had interest-bearing debt at the end of the period totalling to SEK 81.6 million (94.5 million). The company's net interest-bearing debt thereby totalled to SEK 2.5 million (58.1 million).
The company has bank overdraft facilities for a total of SEK 10.0 million and for DKK 17.0 million, which were not utilized at the end of the period (- million).
By the end of the period the company's deferred tax assets attributable to accumulated losses amounted to SEK 10.3 million (SEK 16.8 million).
Equity at the end of the period amounted to SEK 379.9 million (345.5 million), which was equivalent to SEK 7.32 (6.66) per outstanding share at the end of the period. The weakening of the Swedish krona has increased the value of the group's net assets in foreign currencies by SEK 10.9 million (-0.6 million) from the end of the year.
The equity ratio at the end of the period was 59 % (58 %).
Cash flow from operating activities for the period January - September totalled to SEK 60.8 million (34.3 million).
Total investments for the period January - September amounted to SEK 28.6 million (30.6 million.
Investments in intangible assets totalled to SEK 27.0 million (28.6 million) and refer to capitalized product development costs.
Investments in tangible and financial assets totalled to SEK 1.6 million (2.0 million).
During the period January – September the company has amortized SEK 12.8 million (13.1 million) and the interest-bearing debt amounted to SEK 81.6 million (94.5 million) at the end of the period.
As an outcome from the exercise of the personnel warrant program 2015/2018, 314 576 new shares was issued and payments amounting to SEK 3.0 million (3.8 million) has been added to the Company. At the same time the Company repurchased 153 224 warrants to a value of SEK 0.9 million (3.3 million).
During the period a new warrant program (2018/2021) has been issued to the company's personnel amounting to 500 000 warrants, which has provided the company with payments of SEK 0.4 million (0.4 million).
During the period dividends amounting to SEK 25.9 million (15.4 million) has been paid out to shareholders.
Formpipe entered into an agreement to acquire the remaining 35.1 percent of the shares in the subsidiary Formpipe Intelligo AB through a non-cash rights issue. The acquisition was conditional upon the Annual General Meeting, which was held on April 25, 2018, and approved the non-cash rights issue.
The minority owner is employed by the Group, why the acquisition was considered to be a transaction with related parties, and thereby needing a 90% majority at the meeting.
It was decided at the AGM held on 25 April to issue 500,000 warrants offered to all employees within the Formpipe Software group, where one option gives the right to subscribe for one new share. The programme was fully subscribed.
The AGM approved the Board's proposal for a issue of share for non-cash consideration to finance the acquisition of the remaining 35.1 % of the shares from the minority owner of the subsidiary Formpipe Intelligo AB. Through the issue of shares, 699,805 new shares were issued to a value of 10,700,000 SEK.
During the period the personnel warrant program 2015/2018 was exercised. A total of 314,576 new shares were issued from this program.
During the period, the Company completed a rights issue in which 699,805 new shares were issued in connection with the acquisition of the minority's share of the shares in Formpipe Intelligo AB.
The number of shares and votes in the Company has therefore increased with 1 014 381 and the share capital has increased with SEK 101,438.1. After the issue of new shares, the total number of shares and votes in the Company amounts to 52,887,406 and the share capital to SEK 5,288,740.6.
No significant events have occurred during the period.
No significant events have occurred after the periods end.
The number of employees at the end of the reporting period totalled to 219 persons (236 persons).
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 changes in the risk and uncertainty factors for the group and the parent company.
In addition to the agreed agreement to acquire the minority item in Formpipe Intelligo AB, no related party transactions have occurred during the period.
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 1-14 and the interim report on pages 1-7 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 except for the changes in the principles of revenue recognition applied by the Group from January 1, 2018 in accordance with IFRS 15. The Group's new accounting principles for revenue recognition are described in the following section "New accounting principles applied from January 1, 2018".
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.
NE W AC C O U N T I N G ST A N D A R D S AP P L I C A B L E F R O M JA N U A R Y 1, 2018
IFRS 15 is the new standard for revenue recognition. IFRS 15 replaces IAS 18 Revenue and IAS 11 Construction Contracts and all related interpretations (IFRIC and SIC). A revenue is reported when the customer receives control of the sold item or services, a principle that supersedes the former principle that revenue is reported when risks and benefits have passed to the buyer. The basic principle of IFRS 15 is that the Group accounts for revenues in the manner that best reflects the transfer of the control of the promised product or service to the customer. This revenue recognition is done using a five-step model applied to all customer contracts
Based on the above five-step model, the Group's contracts with customers include various performance commitments identified as Licenses, SaaS (Software as a Service), Support and Maintenance Agreements, and Consulting Services. A revenue can only be reported when the control of the service or product sold can be considered to have been transferred to the customer for each type of revenue / performance commitment.
The revenue includes the fair value of what has been or will be obtained for goods and services sold in the Group's ongoing operations. Revenues are reported excluding VAT, returns and discounts and after elimination of intercompany sales.
Below are the accounting principles applied by the Group for these performance commitments.
The Group has analyzed and evaluated IFRS 15 as a regulatory framework and the implementation of IFRS 15 has not led to any transition effects for the Formpipe Group.
The Group develop and sells software. The revenue from license rights is recognized on completion of delivery as agreed and when the customer has received control over the purchased licenses and that no significant obligations remain after delivery date. In the cases where a license is sold and the billing model differs from when the customer has received control over the licenses being delivered, the Group post a provision for a license fee that is settled against the invoices during the term of the agreement. In such cases, the Group assesses whether there is a significant financing component to be reported in the balance sheet and whether there is an interest component that is to be reported under financial items instead of as a regular revenue. The transaction price is thus adjusted for the impact of a significant financing component.
The Group sells SaaS (Software-as-a-Service) by hosting the software and related services as cloud-based services. The software is not installed on the client's own servers, but on servers that the Formpipe Group manages for the customer's part. The customer continuously receive this service, which includes license, support & maintenance as well as hosting of the software, during the term of the contract and is recognized linearly over the contract period. The control is transferred to the customer continuously during the term of the agreement.
The Group sells Support and Maintenance Agreements for the software. Such agreements are signed in connection with the sale of licenses or SaaS (Software as a Service). Revenue from the Support and Maintenance contracts is invoiced in advance and is recognized as revenue over the contract period since the control is transferred to the customer continuously during the term of the agreement.
The Group sells consultancy and education services, which are provided on a regular basis or as a fixed price agreement. Revenue from contracts where consultancy hours are delivered on a regular basis is recognized when the worked hours have been delivered.
Revenue from fixed-price contracts for services, successive revenue recognition is applied. Successive revenue recognition means that revenues are reported based on the amount of services delivered out of the total services to be delivered (completion rate). Revenue from fixed-price contracts for services is usually reported during the period of delivery of the services, distributed linearly throughout the contract period.
If any circumstances arise that may change the initial estimate of revenue, costs or degree of completion, the estimates will be reviewed. These reassessments may result in increases or decreases in estimated revenue or expenses and affect revenue during the period when the circumstances that caused the change came to the knowledge of the company.
The Group offers certain agreements where the customer can purchase a license including one year's service. Where such multi-part agreement exists, revenue from the sale of a license is recognized as the fair value of the license in relation to the fair value of the sales agreement as a whole. The revenue from the service part, which
corresponds to the fair value of the service part in relation to the fair value of the sales contract, is distributed over the service period. Actual values for each part are determined on the basis of current market prices on these parts when sold separately.
Formpipe Software AB (publ) is a software company in the field of ECM (Enterprise Content Management). We develop and deliver ECM products for structuring information in larger companies, the public sector and organizations. Our software helps organizations to capture and place information in context. Reduced costs, minimized risk exposure and structured information are the benefits from using our ECM products.
Formpipe was founded in 2004 and has offices in Sweden, Denmark, United Kingdom, the Netherlands, Germany and USA. The Formpipe share is listed on Nasdaq Stockholm.
| February 12, 2019 | Interim report Jan-Dec |
|---|---|
| April 25, 2019 | Interim report Jan-Mar |
| April 26, 2019 | Annual General Meeting |
| July 12, 2019 | Interim report Jan-Jun |
| October 24, 2019 | Interim report Jan-Sep |
Can be ordered from the below contact details. All financial information is published on www.formpipe.com immediately after being made public.
Christian Sundin, Managing Director Telephone: +46 70 567 73 85, +46 8 555 290 84 E-mail: [email protected]
Stockholm October 23, 2018 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) | 2018 | 2017 | 2018 | 2017 |
| Net Sales | 95 637 | 88 002 | 296 862 | 279 783 |
| Sales expenses | -13 195 | -12 772 | -37 392 | -41 504 |
| Other costs | -17 171 | -15 530 | -55 055 | -51 732 |
| Personnel costs | -48 327 | -46 428 | -156 848 | -155 024 |
| Capitalized work for own account | 8 669 | 8 849 | 24 867 | 28 373 |
| Operating profit/loss before depreciation/amortization | 25 613 | 22 121 | 72 433 | 59 897 |
| and non-comparative items (EBITDA) | ||||
| Items affecting comparability | - | - | - | 1 260 |
| Depreciation/amortization | -11 754 | -10 976 | -35 359 | -38 152 |
| Operating profit/loss (EBIT) | 13 859 | 11 145 | 37 074 | 23 004 |
| Financial income and expenses | -695 | -856 | -2 190 | -3 027 |
| Exchange rate differences | 104 | -147 | 368 | -799 |
| Tax | -3 155 | -3 678 | -7 894 | -4 799 |
| Net profit for the period | 10 112 | 6 464 | 27 358 | 14 379 |
| Of which the following relates to: | ||||
| Parent company shareholders | 10 112 | 6 444 | 27 358 | 14 347 |
| Shareholding with no controlling influence | - | 20 | - | 32 |
| Other comprehensive income | ||||
| Translation differences | -3 747 | -2 759 | 10 867 | -620 |
| Other comprehensive income for the period, net after tax | -3 747 | -2 759 | 10 867 | -620 |
| Total comprehensive income for the period | 6 365 | 3 705 | 38 225 | 13 759 |
| Of which the following relates to: | ||||
| Parent company shareholders | 6 365 | 3 685 | 38 225 | 13 727 |
| Shareholding with no controlling influence | - | 20 | - | 32 |
| EBITDA margin, % | 26,8% | 25,1% | 24,4% | 21,4% |
| EBIT margin, % | 14,5% | 12,7% | 12,5% | 8,2% |
| Profit margin, % | 10,6% | 7,3% | 9,2% | 5,1% |
| Earnings per share attributable to the parent company's shareholders | ||||
| during the period (SEK per share) | ||||
| - before dilution | 0,19 | 0,12 | 0,52 | 0,28 |
| - after dilution | 0,19 | 0,12 | 0,51 | 0,28 |
| Average no. of shares before dilution, in 000 | 52 887 | 51 873 | 52 713 | 51 540 |
| Average no. of shares after dilution, in 000 | 53 319 | 52 191 | 53 341 | 52 104 |
| Sep 30 | Dec 31 | ||
|---|---|---|---|
| (SEK 000) | 2018 | 2017 | 2017 |
| Intangible assets | 471 523 | 457 442 | 465 071 |
| Tangible assets | 4 967 | 3 096 | 4 596 |
| Financial assets | 1 222 | 2 890 | 2 964 |
| Deferred tax asset | 10 286 | 16 777 | 14 937 |
| Current assets (excl. cash equivalents) | 81 664 | 82 197 | 106 052 |
| Cash equivalents | 79 135 | 36 388 | 82 663 |
| TOTAL ASSETS | 648 797 | 598 791 | 676 281 |
| Equity | 379 858 | 345 554 | 363 051 |
| Shareholding with no controlling influence | - | 2 106 | 2 079 |
| Long-term liabilities | 90 724 | 103 377 | 97 137 |
| Current liabilities | 178 214 | 147 754 | 214 014 |
| TOTAL EQUITY AND LIABILITIES | 648 797 | 598 791 | 676 281 |
| Net interest-bearing debt (-) / cash (+) | -2 495 | -58 081 | -9 409 |
| Equity attributable to the parent company's shareholders | Share | ||||||
|---|---|---|---|---|---|---|---|
| Other | Profit/loss | holdings with | |||||
| Share | contributed | Other | brought | no controlling | |||
| (SEK 000) | capital | capital | reserves | forward | Total | influence | Total |
| Balance at January 1, 2017 | 5 127 | 193 933 | 11 395 | 135 793 | 346 249 | 2 706 | 348 954 |
| Comprehensive income | |||||||
| Net profit for the period | - | - | - | 14 347 | 14 347 | 32 | 14 379 |
| Other comprehensive income items | - | - | -620 | - | -620 | - | -620 |
| Total comprehensive income | - | - | -620 | 14 347 | 13 727 | 32 | 13 759 |
| Transaction with owners | |||||||
| Dividend | - | - | - | -15 382 | -15 382 | -632 | -16 014 |
| Share issue | 60 | 3 782 | - | - | 3 842 | - | 3 842 |
| Repurchase of warrants | - | -3 282 | - | - | -3 282 | - | -3 282 |
| Employee warrant schemes | - | 400 | - | - | 400 | - | 400 |
| Total transaction with owners | 60 | 900 | - | -15 382 | -14 422 | -632 | -15 054 |
| Balance at September 30, 2017 | 5 187 | 194 833 | 10 775 | 134 758 | 345 554 | 2 106 | 347 659 |
| Balance at January 1, 2018 | 5 187 | 194 729 | 17 892 | 145 243 | 363 051 | 2 079 | 365 130 |
|---|---|---|---|---|---|---|---|
| Comprehensive income | |||||||
| Net profit for the period | - | - | - | 27 358 | 27 358 | - | 27 358 |
| Other comprehensive income items | - | - | 10 867 | - | 10 867 | - | 10 867 |
| Total comprehensive income | - | - | 10 867 | 27 358 | 38 225 | - | 38 225 |
| Transaction with owners | |||||||
| Acquisition of non-controlling interests | - | - | -8 621 | - | -8 621 | -2 079 | -10 700 |
| Dividend | - | - | - | -25 937 | -25 937 | -25 937 | |
| Issue for non-cash consideration | 70 | 10 630 | - | - | 10 700 | - | 10 700 |
| Share issue | 31 | 2 970 | - | - | 3 001 | - | 3 001 |
| Repurchase of warrants | - | -916 | - | - | -916 | - | -916 |
| Employee warrant schemes | - | 355 | - | - | 355 | - | 355 |
| Total transaction with owners | 101 | 13 038 | -8 621 | -25 937 | -21 418 | -2 079 | -23 497 |
| Balance at September 30, 2018 | 5 288 | 207 768 | 20 137 | 146 664 | 379 858 | - | 379 858 |
| Jul-Sep | Jan-Sep | |||
|---|---|---|---|---|
| (SEK 000) | 2018 | 2017 | 2018 | 2017 |
| Cash flow from operating activities | ||||
| before working capital changes | 25 356 | 22 249 | 67 864 | 55 468 |
| Cash flow from working capital changes | -5 416 | -5 384 | -7 036 | -21 206 |
| Cash flow from operating activities | 19 940 | 16 865 | 60 828 | 34 262 |
| Cash flow from investing activities | -9 936 | -10 527 | -28 587 | -30 565 |
| Cash flow from financing activities | -4 388 | -4 948 | -36 327 | -28 173 |
| Cash flow for the period | 5 616 | 1 390 | -4 086 | -24 476 |
| Change in cash and cash equivalent | ||||
| Cash and cash equivalent at the beginning of the period | 73 699 | 35 109 | 82 663 | 60 890 |
| Translation differences | -179 | -112 | 559 | -26 |
| Cash flow for the period | 5 616 | 1 390 | -4 086 | -24 476 |
| Cash and cash equivalent at the end of the period | 79 135 | 36 388 | 79 135 | 36 388 |
| (SEK 000) | 2016 Q4 | 2017 Q1 | 2017 Q2 | 2017 Q3 | 2017 Q4 | 2018 Q1 | 2018 Q2 | 2018 Q3 |
|---|---|---|---|---|---|---|---|---|
| License | 27 658 | 13 829 | 15 733 | 6 792 | 16 698 | 14 024 | 11 380 | 8 544 |
| SaaS | 2 662 | 3 491 | 3 866 | 5 341 | 6 147 | 6 535 | 7 110 | 8 125 |
| Support and maintenance | 42 619 | 43 638 | 42 685 | 44 536 | 45 130 | 45 678 | 47 610 | 48 147 |
| Software revenues | 72 939 | 60 958 | 62 285 | 56 670 | 67 975 | 66 237 | 66 101 | 64 815 |
| whereof recurring revenue | 45 282 | 47 129 | 46 552 | 49 877 | 51 277 | 52 214 | 54 720 | 56 272 |
| Deliveries | 33 757 | 33 765 | 34 774 | 31 332 | 42 482 | 34 972 | 33 916 | 30 822 |
| Net sales | 106 696 | 94 722 | 97 059 | 88 002 | 110 457 | 101 209 | 100 016 | 95 637 |
| Sales expenses | -14 287 | -13 625 | -15 107 | -12 772 | -19 532 | -10 645 | -13 553 | -13 195 |
| Other costs | -18 621 | -17 502 | -18 700 | -15 530 | -19 978 | -18 965 | -18 919 | -17 171 |
| Personnel costs | -52 220 | -54 465 | -54 130 | -46 428 | -53 580 | -54 358 | -54 163 | -48 327 |
| Capitalized development costs | 8 718 | 9 632 | 9 892 | 8 849 | 8 496 | 8 055 | 8 143 | 8 669 |
| Total operating expenses | -76 410 | -75 960 | -78 046 | -65 881 | -84 595 | -75 913 | -78 492 | -70 024 |
| EBITDA | 30 286 | 18 763 | 19 013 | 22 121 | 25 862 | 25 296 | 21 524 | 25 613 |
| % | 28,4% | 19,8% | 19,6% | 25,1% | 23,4% | 25,0% | 21,5% | 26,8% |
| Items affecting comparability | - | - | 1 260 | - | -863 | - | - | - |
| Depreciation/amortization | -14 460 | -14 356 | -12 820 | -10 976 | -10 330 | -11 721 | -11 884 | -11 754 |
| EBIT | 15 827 | 4 406 | 7 453 | 11 145 | 14 669 | 13 575 | 9 640 | 13 859 |
| % | 14,8% | 4,7% | 7,7% | 12,7% | 13,3% | 13,4% | 9,6% | 14,5% |
* In the connection of the Group's review of effects from the transition to IFRS 15 standard, the Groups's contracts has been reviewed and analyzed. The Group has not noted any effects from the transition that affects the income statement or balance sheet historically. During this work, a few contracts were noted where adjustments of the revenue type where neded between SaaS and support and maintenance. Therefore, reclassifications have been made in the above table between the revenue types SaaS and support and maintenance. At the same time the revenue type SaaS has been broken out of license and is now reported seperatly.
The Group's segments are divided according to which country they have their headquarters in and for which products that is accounted for. The segments are divided into Sweden, Denmark and Life Science. Segment Sweden comprises the Swedish companies and their products, segment Denmark consists of the Danish companies and their subsidiaries that accounts for products belonging to the Danish entities. Segment Life Science consists of the Group's total records related to life sciences customers for its products specifically designed for life science companies. Items related to life sciences are thus reported separately under its own segment and are not included in the other segments' reported amounts.
| Jan-Sep 2018 | |||||||
|---|---|---|---|---|---|---|---|
| Life | |||||||
| (SEK 000) | Sweden | Denmark | Science | Eliminations | Group | ||
| Sales, external | 119 817 | 167 232 | 9 813 | - | 296 862 | ||
| Sales, internal | 3 792 | 980 | 1 023 | -5 795 | - | ||
| Total sales | 123 609 | 168 212 | 10 836 | -5 795 | 296 862 | ||
| Costs, external | -84 701 | -131 116 | -8 612 | - | -224 429 | ||
| Costs, internal | -2 404 | -2 298 | -1 094 | 5 795 | - | ||
| EBITDA | 36 505 | 34 797 | 1 131 | - | 72 433 | ||
| % | 29,5% | 20,7% | 10,4% | 24,4% |
| Jan-Sep 2017 | |||||||
|---|---|---|---|---|---|---|---|
| Life | |||||||
| (SEK 000) | Sweden | Denmark | Science | Eliminations | Group | ||
| Sales, external | 121 302 | 150 714 | 7 767 | - | 279 783 | ||
| Sales, internal | 3 607 | 367 | 571 | -4 545 | - | ||
| Total sales | 124 909 | 151 081 | 8 338 | -4 545 | 279 783 | ||
| Costs, external | -84 234 | -126 419 | -9 233 | - | -219 886 | ||
| Costs, internal | -3 436 | -531 | -578 | 4 545 | - | ||
| EBITDA | 37 239 | 24 131 | -1 473 | - | 59 897 | ||
| % | 29,8% | 16,0% | -17,7% | 21,4% |
Revenues from all products and services are identified as follows:
| Life | ||||
|---|---|---|---|---|
| 2018 | Sweden | Denmark | Science | Group |
| License | 12 566 | 20 421 | 960 | 33 947 |
| SaaS | 10 662 | 9 359 | 1 749 | 21 770 |
| Support & Maintenance | 73 201 | 66 015 | 2 219 | 141 435 |
| Delivery | 23 388 | 71 437 | 4 885 | 99 709 |
| Net sales | 119 817 | 167 232 | 9 813 | 296 862 |
| Life | ||||
|---|---|---|---|---|
| 2017 | Sweden | Denmark | Science | Group |
| License | 17 632 | 18 188 | 535 | 36 355 |
| SaaS | 8 947 | 2 617 | 1 134 | 12 698 |
| Support & Maintenance | 69 280 | 59 318 | 2 262 | 130 860 |
| Delivery | 25 443 | 70 591 | 3 837 | 99 871 |
| Net sales | 121 302 | 150 714 | 7 767 | 279 783 |
| 2015-01-01 2015-12-31 |
2016-01-01 2016-12-31 |
2017-01-01 2017-12-31 |
2018-01-01 2018-06-30 |
2018-01-01 2018-09-30 |
|
|---|---|---|---|---|---|
| Number of outstanding shares at the beginning of the period |
50 143 402 | 50 143 402 | 51 273 608 | 51 873 025 | 52 887 406 |
| Share issue from warrant programme | - | 1 130 206 | 599 417 | 314 576 | - |
| Non-cash issue | - | - | - | 699 805 | - |
| Number of outstanding shares at the end of the period |
50 143 402 | 51 273 608 | 51 873 025 | 52 887 406 | 52 887 406 |
| Jan-Sep | ||
|---|---|---|
| 2018 | 2017 | |
| Net sales, SEK 000 | 296 862 | 279 783 |
| EBITDA, SEK 000 | 72 433 | 59 897 |
| EBITDA-adj., SEK 000 | 47 566 | 31 523 |
| EBIT, SEK 000 | 37 074 | 23 004 |
| Net profit for the period, SEK 000 | 27 358 | 14 379 |
| EBITDA margin, % | 24,4% | 21,4% |
| EBITDA-adj. margin, % | 16,0% | 11,3% |
| EBIT margin, % | 12,5% | 8,2% |
| Profit margin, % | 9,2% | 5,1% |
| Return on equity, %* | 10,2% | 7,5% |
| Return on working capital, %* | 13,7% | 9,7% |
| Equity ratio, % | 59% | 58% |
| Equity per outstanding share at the end of the period, SEK | 7,32 | 6,66 |
| Earnings per share - before dilution, SEK | 0,52 | 0,28 |
| Earnings per share - after dilution, SEK | 0,51 | 0,28 |
| Share price at the end of the period, SEK | 20,10 | 14,90 |
* Ratios including P&L measures are based on the most recent 12-month period
| Jul-Sep | Jan-Sep | |||
|---|---|---|---|---|
| (SEK 000) | 2018 | 2017 | 2018 | 2017 |
| Net sales | 32 422 | 32 961 | 110 746 | 108 089 |
| Operating expenses | ||||
| Sales expenses | -3 646 | -3 809 | -10 235 | -14 854 |
| Other costs | -9 171 | -8 213 | -26 425 | -22 895 |
| Personnel costs | -17 436 | -15 652 | -51 565 | -48 809 |
| Depreciation/amortization | -1 601 | -1 571 | -4 666 | -4 688 |
| Total operating expenses | -31 853 | -29 244 | -92 890 | -91 247 |
| Operating profit/loss | 569 | 3 717 | 17 856 | 16 843 |
| Other financial items | -2 254 | 714 | -2 429 | 1 737 |
| Net profit for the period | -1 685 | 5 599 | 15 427 | 19 747 |
| Sep 30 | Dec 31 | |||
|---|---|---|---|---|
| (SEK 000) | 2018 | 2017 | 2017 | |
| Intangible assets | 12 711 | 15 785 | 14 852 | |
| Tangible assets | 1 184 | 972 | 967 | |
| Financial assets | 331 661 | 325 725 | 324 304 | |
| Deferred tax asset | 2 816 | - | - | |
| Current assets (excl. cash equivalents) | 45 472 | 70 462 | 79 439 | |
| Cash and bank balances | 41 787 | 27 563 | 65 908 | |
| TOTAL ASSETS | 435 631 | 440 507 | 485 470 | |
| Restricted equity | 22 979 | 22 878 | 22 878 | |
| Non-restricted equity | 214 157 | 215 330 | 211 628 | |
| Total equity | 237 136 | 238 208 | 234 506 | |
| Long-term liabilities | 70 815 | 77 457 | 81 429 | |
| Current liabilities | 124 865 | 124 842 | 169 535 | |
| TOTAL EQUITY AND LIABILITIES | 432 816 | 440 507 | 485 470 |
* A reclassification has been made between financial assets and current assets for the year 2017 as of Sep 30 related to the short-term part of interest bearing receivables on group companies. The reclassification amounts to 11 678 Tkr.
Pledged assets refers to shares in subsidiaries as security for loans. The pledged assets in the Group is the same as disclosed for the Parent Company.
| Sep 30 | Dec 31 | |||
|---|---|---|---|---|
| (SEK 000) | 2018 | 2017 | 2017 | |
| Pledged assets | 307 246 | 302 219 | 310 329 | |
| Contingent liabilities | - | - | - |
Formpipe uses alternative key figures, also called APM (Alternative Performance Measures). From July 3rd 2016 new guidelines were implemented by the European Union regarding alternative APM's, which Formpipe uses in published reports. Formpipe's APM's is calculated from the financial reports, which are prepared in accordance with applicable rules for financial reporting, where prepared figures is 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
The total of license revenue and revenue from support and maintenance contracts.
Revenue of an annually recurring nature such as support and maintenance revenue and revenue from SAAS services regarding license agreements.
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.
Initial value for the period's Annual recurring revenue.
Annual recurring revenue of the period's won and lost contracts (net).
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.
Other costs and personnel costs
Sales costs, other costs, personnel costs, capitalized development and depreciation.
Earnings before depreciation, amortization, acquisitionrelated costs and other items affecting comparability.
EBITDA exclusive capitalized work for own account
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
Operating profit/loss
Earnings before depreciation, amortization, acquisitionrelated costs and other items affecting comparability as a percentage of net sales.
Earnings before capitalized work for own account, depreciation, amortization, acquisition-related costs and other items affecting comparability as a percentage of net sales.
Operating profit/loss as a percentage of net sales.
Net profit/loss after tax as a percentage of sales at the end of the period.
Net profit/loss after tax divided by the average number of shares during the period.
Net proft/loss after tax adjusted for dilution effects divided by the average number of shares after dilution during the period.
Equity at the end of the period divided by the number of shares at the end of the period.
Profit/loss after tax as a percentage of average equity
Operating profit/loss as a percentage of average working capital (balance sheet total less non-interest bearing liabilities and cash and bank balances).
Cash flow from operating activities minus cash flow from investing activities excluding acquisitions.
Interest bearing debts minus cash and cash equivalents
Equity as a percentage of the balance sheet total.
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