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Formpipe Software

Quarterly Report Apr 28, 2020

3159_10-q_2020-04-28_9691451a-42ea-4236-85dd-baec4a034d45.pdf

Quarterly Report

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Interim Report January – March 2020

PERIOD JANUARY 1 – MARCH 31, 2020

  • Net sales of SEK 103.1 m (SEK 96.8 m)
  • Software revenues of SEK 68.3 m (SEK 61.5 m)
  • Recurring revenues of SEK 60.8 m (SEK 56.5 m) which corresponds to 59 % (58 %) of net sales.
  • EBITDA SEK 27.1 m; 26.3 % (SEK 23.0 m; 23.8 %)
  • EBITDA-adj. SEK 18.0 m; 17.4 % (SEK 14.0 m; 14.5 %)
  • EBIT SEK 14.8 m; 14.4 % (SEK 9.5 m; 9.8 %)
  • Net profit SEK 11.3 m; 10.9 % (SEK 6.3 m; 6.5 %)
  • EPS before dilution SEK 0.21 (SEK 0.12)
  • Cash flow from operating activities SEK 26.1 m (SEK -12.5 m)

INCOME STATEMENT - SUMMARY

Jan-Mar Full year
(SEK Million) 2020 2019 months 2019
Net sales 103,1 96,8 400,1 393,8
whereof recurring revenue 60,8 56,5 234,0 229,7
EBITDA 27,1 23,0 104,8 100,7
EBITDA-adj 18,0 14,0 68,3 64,4
EBIT 14,8 9,5 52,8 47,5

Comments from the Group's CEO

In the first quarter, we achieved an operating profit of SEK 14.8 million (SEK 9.5 million), an improvement of 56% compared to the previous year, a solid start to the year.

During the quarter we closed a number of interesting agreements. Fiskeristyrelsen, a new customer in Denmark, intends to use TAS for the management of fishing rights in the EU. Our customer Fresenius Kabi, who already uses Platina QMS in Sweden and Austria, has now also purchased our solutions for its operations in Portugal. Even more gratifying is that the deal consists of a combination of several products, Platina QMS, Lasernet and Long-Term Archive.

Due to the ongoing Covid-19 pandemic, there is great uncertainty around the world. During the first quarter, this has not had a significant impact on the financial outcome of our business. Thereby, not saying that we will remain unaffected in the future. We are humble by the fact that the near future is uncertain.

Two thirds of our sales go to the public sector and the signals from the public Denmark and Sweden are clear. They will as far as possible continue their projects and

investments to be safe and stable customers during these uncertain times. Nevertheless, we believe that our customers will re-plan and postpone projects and new procurements.

Our product TAP has been used for many years by the Danish Board of Agriculture in Denmark to pay EU subsidies for agriculture. The planned EU CAP2020 reform has been delayed due to the uncertainty surrounding Brexit and now there are a risk of further delays caused by Covid-19. The increased uncertainty in combination with the contractual terms from the last extension of the contract with the customer, which does not contain guaranteed volumes, means that we have chosen to reclassify these revenues from Support & Maintenance to Delivery revenue instead, corresponding to DKK 2.5 million per quarter. In order to facilitate comparisons, we have also made the same adjustment for historical quarters.

In our business area Private Sector, the demand is currently good. If the effects of the ongoing pandemic become prolonged, we believe that the demand is likely to decrease.

We have solid and stable finances, and a business model with a high proportion of recurring revenue. We believe that we have good conditions to manage the impact on our business during these challenging times.

Finally, I would like to emphasize that for Formpipe, the health of our customers and employees is our highest priority. We act long term and focus on ensuring that we are well equipped when the world order is restored.

Market

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, email, 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 Enterprise Content Management (ECM) 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, manufacturing, life science, energy and water as well as legal.

The growth in the market is fueled 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, analyse, process and distribute data and content. Growth drivers tend to gain strength as the amount of data and information increases. Intelligent information management is a high priority area.

Gartner's forecast for the global market is an average annual growth of 9.4 per cent in 2018-2023. The Content Services market has a total addressable forecast market in 2021 with system revenues of USD 10.5 billion1 .

CLOUD-BASED SOLUTIONS

An important part of the change of the ECM 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 40 per cent of the total sales of software in 2022.

This development is well in line with Formpipe's reality where growing numbers of the Company's customers choose to shift to Formpipe's cloud services for the standard products and with the Company's development of service modules that can process information both from Formpipe's existing systems and other systems.

Business Areas

SWEDISH PUBLIC SECTOR

Around SEK 45 billion is invested in IT in the public sector every year. The Swedish Government's ambition is for government agencies, municipalities and county councils to be the best in the world at using the possibilities of digitalization to create an efficient public sector – a simpler daily life for private individuals and companies, more jobs and greater welfare. Digital solutions and automation create opportunities to meet the growing welfare needs and at the same time increase the service to the citizens. Formpipe has extensive knowledge of the opportunities and challenges that Sweden's municipalities, county councils and agencies will be facing in the future.

Estimated impact of Covid-19 for the business area Swedish Public Sector:

The National Agency for Public Procurement in Sweden is clear in its message to the public sector in Sweden:

  • Continue with purchases as usual.
  • Now is not the time to cancel procurements or postpone purchases.
  • The public sector is needed as a stable and secure customer when there are uncertain times.

In practice, however, some customers are judged to be in need of re-planning to postpone projects for practical or technical reasons. There is also reason to believe that, for these practical reasons, fewer new procurements will be initiated than would otherwise have been expected.

1 Gartner: Enterprise Application Software, Worldwide, 4Q19 Update

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.

DANISH PUBLIC SECTOR

In the Danish public sector, Formpipe is a market leading vendor of software within Enterprise Content Management (ECM). The digitalization of the Danish public sector creates value, growth and efficiency. The public sector sets ambitious goals for the development towards a more digital public sector in the next few years. 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 billion2 by 2025. Money that can then be fed back to the public sector and contribute to increasing the level of service. Formpipe has extensive knowledge of the opportunities and challenges that the Danish public sector will face in the future.

Estimated impact of Covid-19 for the business area Danish Public Sector:

The government in Denmark urges public organizations to act as the stable purchasing power in society and to help private companies to get through the financial turmoil. However, some customers will still be in need of re-planning to postpone projects for practical or technical reasons.

Formpipe's TAP platform is installed on the Board of Agriculture to support the process of EU's joint grants for agriculture. The planned EU CAP-2020 reform has been delayed due to the uncertainty surrounding Brexit and now Covid-19 risks to further delaying it. The continued delay of the CAP-2020 reform thus results in increased uncertainty in this business area.

PRIVATE SECTOR

The global ERP software market was estimated at USD 35.81 billion in 2018 and is expected to reach USD 78.40 billion by 20263 . 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 a product that complements 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 complement to Dynamics and improves the customer experience through efficient document management. Microsoft supports the marketing of Lasernet, for instance through their global market places Microsoft Azure Marketplace and Microsoft AppSource.

There is potential to expand Formpipe's offering with more products through this channel. This may include, for instance, our product Long-Term Archive, which can make it easier for companies and organizations to execute on their cloud strategy. By providing Long-Term Archive in Azure, customers can move all their business systems to the cloud without the risk of losing valuable information. Both Gartner and Microsoft find this area (often referred to as Cloud Migration or Application Retirement) as a significant growth area.

Estimated impact of Covid-19 for the business area Private Sector:

Within the business area Private Sector, the risk of negative impact of Covid-19 is assessed as greater than for Formpipe's other two business areas. New sales are mainly driven by our partners selling the product Lasernet as part of ERP system implementation projects, such as Microsoft Dynamics etc. At present, the demand is good but there is reason to believe that if the pandemic becomes long-lasting, new ERP investments will come to be pushed for the future. There is also a significant risk that customers within the private sector will end up in financial problems with missing payments as a result and that existing agreements within Support & Maintenance and SaaS will be lost.

When the pandemic is over, the possible deferred ERP investments are estimated to have created a pent-up need with a demand that is higher than normal at that stage.

2 https://www.danskindustri.dk/politik-og-analyser/dimener/digitalisering/digitalisering-af-den-offentlige-sektor/

3 https://www.alliedmarketresearch.com/ERP-market

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.

Financial Information

REVENUE

January – March 2020

Net sales for the period totalled to SEK 103.1 million (96.8 million), which corresponds to a increase of 6 %. Software revenue increased by 11 % from the previous year and totalled to SEK 68.3 million (61.5 million). Total recurring revenue for the period increased by 8 % from the previous year and totalled to SEK 60.8 million (56.5 million), which is equivalent to 59 % of net sales (58 %). Exchange rate effects have affected net sales positively by SEK 1.5 million in comparison with the previous year.

Recurring revenue rolling 12 months, MSEK

COSTS

January – March 2020

The operating costs for the period totalled to SEK 88.3 million (87.3 million). Personnel costs totalled to SEK 54.9 million (54.1 million). Selling expenses totalled to SEK 11.2 million (11.9 million). Other costs totalled to SEK 19.0 million (16.8 million).

Recurring revenues in relation to fixed operating costs rolling 12 months, MSEK

EARNINGS

January – March 2020

Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 27.1 million (23.0 million) with an EBITDA margin of 26.3 % (23.8 %). Operating profit (EBIT) totalled to SEK 14.8 million (9.5 million) with an operating margin of 14.4 % (9.8 %). Net profit totalled to SEK 11.3 million (6.3 million). Exchange rate effects have affected EBITDA positively by SEK 0.2 million in comparison with the previous year.

Sales and EBITDA margin, MSEK

FINANCIAL POSITION AND LIQUIDITY

Cash equivalents

Cash and cash equivalents at the end of the period amounted to SEK 43.5 million (95.4 million). The company had interest-bearing debt at the end of the period totalling to SEK 26.3 million (104.9 million), whereof 26.3 million (31.5 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.

The company's net cash position thereby totalled to SEK 17.2 million (-9.4 million), which corresponds to a net cash position of 43.5 million (22.0 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 9.1 million (SEK 9.9 million).

Equity

Equity at the end of the period amounted to SEK 430.1 million (402.4 million), which was equivalent to SEK 8.09 (7.61) 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 18.7 million (5.1 million) from the end of the year.

Equity ratio

The equity ratio at the end of the period was 63 % (56 %).

CASH FLOW

Cash flow from operating activities

Cash flow from operating activities for the period January - March totalled to SEK 26.1 million (-12.5 million). The cash flow has been affected positively by a decreased working capital tied up compared to previous periods.

Investments and acquisitions

Total investments for the period January - March amounted to SEK 10.5 million (9.9 million).

Investments in intangible assets totalled to SEK 9.6 million (9.5 million) and refer to capitalized product development costs.

Investments in tangible and financial assets totalled to SEK 0.9 million (0.4 million).

Financing

During the period January – March the company amortized SEK 5.9 million (4.8 million). The existing bank overdraft facility totalling to SEK 50.0 million was not utilized at the end of the period. Leasing related liabilities amounted to SEK 26.3 million (31.5 million) at the end of the period. The company's interest-bearing debt at the end of the period was thereby SEK 26.3 million (104.9 million).

Significant events during the period January – March 2020

NEW DATE OF THE ANNUAL GENERAL MEETING AND AN UPDATED CALENDAR FOR FINANCIAL INFORMATION

Due to the uncertainty arising from the spread of the Corona virus, Covid-19, the Board of Directors decided to postpone the Annual General Meeting until Tuesday, June 30, 2020 at 10:00 am. By postponing the Annual General Meeting, the Board of Directors will be given the opportunity to continuously analyze and assess the situation, and based on this, evaluate the proposed dividend for 2019.

As a consequence of the postponed Annual General Meeting, the publication of the interim report for January-June will also be postponed until Wednesday, August 19, 2020.

Significant events after the period's end

No significant events have occurred after the period's end.

Other

EMPLOYEES

The number of employees at the end of the reporting period totalled to 219 persons (222 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. For risks related to Covid-19, see this report under the section Market. 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 1-14 and the interim report on pages 1-6 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 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.

CALENDAR FOR FINANCIAL INFORMATION

Annual General Meeting
Interim report Jan-Jun
Interim report Jan-Sep

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

The annual report will be available for shareholders from 30th of April 2020 on Formpipe's webpage, www.formpipe.com, and on the group's headquarter, Sveavägen 168 in Stockholm.

The Annual General Meeting will be held at the head office at Sveavägen 168, at 10:00 am on the 30th of June 2020.

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 April 28, 2020 Formpipe Software AB The Board of Directors and the Managing Director

Formpipe Software AB (publ) Swedish company reg. no.: 556668-6605 Sveavägen 168 | Box 231 31 | 104 35 Stockholm T: +46 8 555 290 60 | F: +46 8 555 290 99 [email protected] | www.formpipe.se

CONSOLIDATED INCOME STATEMENT SUMMARY

Jan-Mar
(SEK 000) 2020 2019
Net Sales 103 093 96 823
Sales expenses -11 210 -11 864
Other costs -19 037 -16 794
Personnel costs -54 870 -54 121
Capitalized work for own account 9 148 8 955
Operating profit/loss before depreciation/amortization 27 122 22 998
and non-comparative items (EBITDA)
Depreciation/amortization -12 302 -13 502
Operating profit/loss (EBIT) 14 820 9 496
Financial income and expenses -195 -781
Exchange rate differences 63 -499
Tax -3 404 -1 885
Net profit for the period 11 285 6 331
Of which the following relates to:
Parent company shareholders 11 285 6 331
Other comprehensive income
Translation differences 18 673 5 056
Other comprehensive income for the period, net after tax 18 673 5 056
Total comprehensive income for the period 29 958 11 387
Of which the following relates to:
Parent company shareholders 29 958 11 387
EBITDA margin, % 26,3% 23,8%
EBIT margin, % 14,4% 9,8%
Profit margin, % 10,9% 6,5%
Earnings per share attributable to the parent company's
shareholders during the period (SEK per share)
- before dilution 0,21 0,12
- after dilution 0,21 0,12
Average no. of shares before dilution, in 000 53 174 52 887
Average no. of shares after dilution, in 000 53 269 53 378

CONSOLIDATED BALANCE SHEET SUMMARY

Mar 31 Dec 31
(SEK 000) 2020 2019 2019
Intangible assets 490 700 473 533 472 389
Tangible assets 33 179 38 745 33 745
Financial assets 4 545 5 887 4 824
Deferred tax asset 9 121 9 943 7 664
Current assets (excl. cash equivalents) 97 346 96 375 122 268
Cash equivalents 43 500 95 439 33 682
TOTAL ASSETS 678 391 719 923 674 573
Equity 430 087 402 410 400 129
Shareholding with no controlling influence - - -
Long-term liabilities 47 944 47 517 43 791
Current liabilities 200 360 269 996 230 654
TOTAL EQUITY AND LIABILITIES 678 391 719 923 674 573
Net interest-bearing debt (-) / cash (+) 17 163 -9 449 690

CHANGES IN CONSOLIDATED EQUITY

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, 2019 5 288 207 768 18 770 159 196 391 023 - 391 023
Comprehensive income
Net profit for the period - - - 6 331 6 331 - 6 331
Other comprehensive income items - - 5 056 - 5 056 - 5 056
Total comprehensive income - - 5 056 6 331 11 387 - 11 387
Total transaction with owners - - - - - - -
Balance at March 31, 2019 5 288 207 768 23 826 165 527 402 410 - 402 410
Balance at January 1, 2020 5 317 208 600 23 712 162 498 400 129 - 400 129
Comprehensive income
Net profit for the period - - - 11 285 11 285 - 11 285
Other comprehensive income items - - 18 673 - 18 673 - 18 673
Total comprehensive income - - 18 673 11 285 29 958 - 29 958
Total transaction with owners - - - - - - -
Balance at March 31, 2020 5 317 208 600 42 385 173 783 430 087 - 430 087

CASH FLOW STATEMENT SUMMARY

Jan-Mar
(SEK 000) 2020 2019
Cash flow from operating activities
before working capital changes 21 681 17 651
Cash flow from working capital changes 4 373 -30 143
Cash flow from operating activities 26 054 -12 492
Cash flow from investing activities -10 545 -9 888
Cash flow from financing activities -7 278 -6 861
Of which dividend paid - -
Cash flow for the period 8 231 -29 241
Change in cash and cash equivalent
Cash and cash equivalent at the beginning of the period 33 682 123 782
Translation differences 1 586 898
Cash flow for the period 8 231 -29 241
Cash and cash equivalent at the end of the period 43 500 95 439

8 QUARTERS IN SUMMARY

(SEK 000) 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1
License 11 380 8 544 10 670 4 972 11 629 4 678 10 157 7 508
SaaS 7 110 8 125 9 031 10 475 10 728 11 532 12 323 12 884
Support and maintenance 44 117 44 626 47 461 46 037 45 671 46 241 46 705 47 952
Software revenues 62 607 61 295 67 161 61 484 68 029 62 450 69 185 68 344
whereof recurring revenue 51 227 52 751 56 491 56 512 56 399 57 773 59 028 60 836
Deliveries 37 409 34 342 42 389 35 339 33 461 29 975 33 874 34 749
Net sales 100 016 95 637 109 550 96 823 101 490 92 425 103 059 103 093
Sales expenses -13 553 -13 195 -13 549 -11 864 -12 836 -9 924 -12 918 -11 210
Other costs -18 919 -17 171 -19 966 -16 794 -18 806 -20 143 -17 220 -19 037
Personnel costs -54 163 -48 327 -58 156 -54 121 -53 900 -47 885 -52 979 -54 870
Capitalized development costs 8 143 8 669 9 419 8 955 9 065 9 811 8 430 9 148
Total operating expenses -78 492 -70 024 -82 252 -73 825 -76 478 -68 140 -74 687 -75 970
EBITDA 21 524 25 613 27 299 22 998 25 012 24 285 28 372 27 122
% 21,5% 26,8% 24,9% 23,8% 24,6% 26,3% 27,5% 26,3%
Items affecting comparability - - - - - - - -
Depreciation/amortization -11 884 -11 754 -11 159 -13 502 -13 528 -13 065 -13 059 -12 302
EBIT 9 640 13 859 16 140 9 496 11 484 11 220 15 314 14 820
% 9,6% 14,5% 14,7% 9,8% 11,3% 12,1% 14,9% 14,4%

* As of January 1, 2019, the Group applies IFRS 16 according to the modified retroactive transition method, which means that the comparative figures will not be recalculated. The effect of the application of IFRS 16 means that the operating leases previously expensed on a straight-line basis over the income statement under the item "Other expenses" from Q1 2019 are expensed under depreciation and financial items instead.

8 QUARTERS IN SUMMARY EXCL. RECLASSIFICATION OF REVENUE

(SEK 000) 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1
License 11 380 8 544 10 670 4 972 11 629 4 678 10 157 7 508
SaaS 7 110 8 125 9 031 10 475 10 728 11 532 12 323 12 884
Support and maintenance 47 610 48 147 50 947 49 554 49 253 49 843 50 300 51 521
Software revenues 66 101 64 815 70 647 65 001 71 610 66 053 72 780 71 912
whereof recurring revenue 54 720 56 272 59 978 60 030 59 981 61 375 62 623 64 405
Deliveries 33 916 30 822 38 903 31 822 29 879 26 372 30 279 31 180
Net sales 100 016 95 637 109 550 96 823 101 490 92 425 103 059 103 093
Sales expenses -13 553 -13 195 -13 549 -11 864 -12 836 -9 924 -12 918 -11 210
Other costs -18 919 -17 171 -19 966 -16 794 -18 806 -20 143 -17 220 -19 037
Personnel costs -54 163 -48 327 -58 156 -54 121 -53 900 -47 885 -52 979 -54 870
Capitalized development costs 8 143 8 669 9 419 8 955 9 065 9 811 8 430 9 148
Total operating expenses -78 492 -70 024 -82 252 -73 825 -76 478 -68 140 -74 687 -75 970
EBITDA 21 524 25 613 27 299 22 998 25 012 24 285 28 372 27 122
% 21,5% 26,8% 24,9% 23,8% 24,6% 26,3% 27,5% 26,3%
Items affecting comparability - - - - - - - -
Depreciation/amortization -11 884 -11 754 -11 159 -13 502 -13 528 -13 065 -13 059 -12 302
EBIT 9 640 13 859 16 140 9 496 11 484 11 220 15 314 14 820
% 9,6% 14,5% 14,7% 9,8% 11,3% 12,1% 14,9% 14,4%

SEGMENT SUMMARY

From January 1, 2019, 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.

Jan-Mar 20
SE DK
(Tkr) Public Public Private Other Elim. IFRS 16 Koncern
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
Sales, internal 80 19 -95 - -4 - -
Net sales 29 813 41 942 30 158 1 184 -4 - 103 093
Costs, external -17 910 -29 335 -26 503 -4 198 - 1 976 -75 970
Costs, internal 54 -81 23 - 4 - 0
EBITDA 11 956 12 526 3 678 -3 014 - 1 976 27 122
% 40,1% 29,9% 12,2% -254,6% 26,3%
Jan-Mar 19
SE DK
(Tkr) Public Public Private Other Elim. IFRS 16 Koncern
License 535 1 516 2 921 - - - 4 972
SaaS 4 242 1 561 4 666 7 - - 10 475
Support & Maintenance 19 971 10 525 14 154 1 387 - - 46 037
Delivery 5 956 24 347 5 036 0 - - 35 339
Sales, internal 92 20 1 049 - -1 161 - -
Net sales 30 795 37 969 27 826 1 394 -1 161 - 96 823
Costs, external -19 413 -30 190 -22 543 -3 642 - 1 963 -73 825
Costs, internal -18 -93 -1 050 - 1 161 - -
EBITDA 11 365 7 685 4 233 -2 247 - 1 963 22 998
% 36,9% 20,2% 15,2% -161,2% 23,8%

NUMBER OF SHARES

Number of outstanding shares at the end of the period 51 273 608 51 873 025 52 887 406 53 173 907 53 173 907
Non-cash issue - - 699 805 - -
Share issue from warrant programme 1 130 206 599 417 314 576 286 501 -
Number of outstanding shares at the beginning of the period 50 143 402 51 273 608 51 873 025 52 887 406 53 173 907
2016-12-31 2017-12-31 2018-12-31 2019-12-31 2020-03-31
2016-01-01 2017-01-01 2018-01-01 2019-01-01 2020-01-01

KEY RATIOS FOR THE GROUP

Jan-Mar
2020 2019
Net sales, SEK 000 103 093 96 823
EBITDA, SEK 000 27 122 22 998
EBITDA-adj., SEK 000 17 975 14 043
EBIT, SEK 000 14 820 9 496
Net profit for the period, SEK 000 11 285 6 331
EBITDA margin, % 26,3% 23,8%
EBITDA-adj. margin, % 17,4% 14,5%
EBIT margin, % 14,4% 9,8%
Profit margin, % 10,9% 6,5%
Return on equity, %* 9,6% 9,5%
Return on working capital, %* 13,0% 12,5%
Equity ratio, % 63% 56%
Equity per outstanding share at the end of the period, SEK 8,09 7,61
Earnings per share - before dilution, SEK 0,21 0,12
Earnings per share - after dilution, SEK 0,21 0,12
Share price at the end of the period, SEK 17,46 23,60

* Ratios including P&L measures are based on the most recent 12-month period

PARENT COMPANY INCOME STATEMENT SUMMARY

Jan-Mar
(SEK 000) 2020 2019
Net sales 34 317 33 870
Operating expenses
Sales expenses -1 222 -2 680
Other costs -9 323 -8 823
Personnel costs -17 622 -18 683
Depreciation/amortization -1 536 -1 480
Total operating expenses -29 703 -31 666
Operating profit/loss 4 613 2 204
Other financial items -121 -1 412
Appropriations - -
Tax - -
Net profit for the period 4 492 792

PARENT COMPANY BALANCE SHEET SUMMARY

Mar 31 Dec 31
(SEK 000) 2020 2019 2019
Intangible assets 9 338 11 415 12 198
Tangible assets 909 1 145 1 185
Financial assets 278 483 279 932 280 294
Deferred tax asset - - -
Current assets (excl. cash equivalents) 51 785 97 211 94 690
Cash and bank balances 22 847 34 388 64 116
TOTAL ASSETS 363 363 424 091 452 482
Restricted equity 23 008 22 979 22 979
Non-restricted equity 195 569 219 640 218 848
Total equity 218 577 242 619 241 827
Long-term liabilities - - -
Current liabilities 144 786 181 472 210 655
TOTAL EQUITY AND LIABILITIES 363 363 424 091 452 482

PLEDGED ASSETS AND CONTINGENT LIABILITIES

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.

Mar 31 Dec 31
(SEK 000) 2020 2019 2019
Pledged assets - 334 180 -
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 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

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.

ACV

Annual recurring revenue of the period's won and lost 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.

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.

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