Quarterly Report • Oct 29, 2021
Quarterly Report
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Q3 2021.
Third quarter 2021 results Formpipe Software
| Net sales of SEK | 106 m | (96 m) |
|---|---|---|
| Recurring revenues of SEK | 70 m | (63 m) |
| which corresponds to % of net sales | 66 % | (66 %) |
| EBITDA SEK | 30 m | (27 m) |
| EBITDA margin | 28 % | (28 %) |
| EBIT | 17 m | (14 m) |
| EBIT margin | 16 % | (15 %) |
| Net profit SEK | 12 m | (9 m) |
| Net profit margin | 12 % | (10 %) |
| EPS before dilution SEK | 0.23 | (0.17) |
| Cash flow from operating activities SEK | 30 m | (3 m) |
| ACV SEK | 9.4 m | (4.3 m) |
| ARR SEK | 291 m | (259 m) |
ACV SEK 9 m (4 m) ARR SEK 291 m (259 m)
| Net sales of SEK | 351 m | (300 m) |
|---|---|---|
| Recurring revenues of SEK | 205 m | (186 m) |
| which corresponds to % of net sales | 58 % | (62 %) |
| EBITDA SEK | 107 m | (78 m) |
| EBITDA margin | 31 % | (26 %) |
| EBIT | 52 m | (41 m) |
| EBIT margin | 15 % | (14 %) |
| Net profit SEK | 39 m | (29 m) |
| Net profit margin | 11 % | (10 %) |
| EPS before dilution SEK | 0.73 | (0.55) |
| Cash flow from operating activities SEK | 47 m | (65 m) |
| ACV SEK | 25.7 m | (13.3 m) |
| ARR SEK | 291 m | (259 m) |
"Business area Private Sector shows a very positive development with sales growth of 18 percent "
Christian Sundin, CEO Formpipe
| Jul-Sep | Jan-Sep | |||
|---|---|---|---|---|
| (SEK Million) | 2021 | 2020 | 2021 | 2020 |
| Net sales | 106,4 | 96,4 | 350,9 | 299,8 |
| whereof recurring revenue | 70,4 | 63,3 | 205,0 | 186,4 |
| EBITDA | 29,7 | 27,0 | 107,0 | 78,4 |
| Margin, % | 27,9% | 28,1% | 30,5% | 26,2% |
| EBIT | 17,1 | 14,0 | 52,5 | 40,6 |
| Margin, % | 16,1% | 14,5% | 15,0% | 13,5% |
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.
Formpipe presents a strong third quarter with sales growth of 10 percent to SEK 106 million (96 million) and where the business area Private Sector shows a very positive development with sales growth of 18 percent. For our long-term growth, it is important that we take advantage of the opportunities our own developed product Lasernet offers, and I am pleased that the business is growing according to plan.
For the third quarter in a row, we see an increased Annual Contract Value (ACV), which is the net of all won contracts with recurring revenue, and during the quarter ACV amounted to SEK 9 million compared with SEK 4 million in the same period last year, including a result of intensified sales efforts. The increase in ACV gives an annual rate of recurring revenue (ARR) at the end of the quarter of SEK 291 million, compared with SEK 259 million during the same period last year.
Our growth strategy is to increase our capacity to support our partners in the sales process and thereby meet the demand for Lasernet, while deliveries are increasingly made through the partner network. The development is proof of the scalability of our business, where we see a strong development for Lasernet as SaaS (Software as a Service).
During the third quarter, we saw strong growth in the public sector in Denmark, where the deal with Landbrugsstyrelsen, which was announced during
the second quarter, contributes to a positive momentum in the market. We see a good demand in Sweden as well, for both products and services. However, we have noted the tough competition for competence, which in the short term affects our ability to grow in this segment. Going forward, our focus will continue to be on recruiting to meet demand and ensure a high presence with our customers.
We expect a continued positive development with good demand in both the private and public sectors.
Christian Sundin, CEO Formpipe
Net sales for the period increased by 10 % compared to previous year and totalled to SEK 106.4 million (96.4 million). Software revenue increased by 9 % from the previous year and totalled to SEK 75.6 million (69.1 million). Total recurring revenue for the period increased by 11 % from the previous year and totalled to SEK 70.4 million (63.3 million), which is equivalent to 66 % of net sales (66 %). Exchange rate effects have affected net sales negatively by SEK 2.6 million in comparison with the previous year.
Net sales for the period decreased by 17 % compared to previous year and totalled to SEK 350.9 million (299.8 million). Software revenue increased by 26 % from the previous year and totalled to SEK 264.3 million (209.9 million). Total recurring revenue for the period increased by 10 % from the previous year and totalled to SEK 205.0 million (186.4 million), which is equivalent to 58 % of net sales (62 %). The deal with Landbrugsstyrelsen is included in net sales and software revenues and amounts to SEK 40.9 million. Exchange rate effects have affected net sales negatively by SEK 8.9 million in comparison with the previous year.
Recurring revenue, rolling 12 m, mSEK
The operating costs for the period totalled to SEK 89.3 million (82.4 million). Personnel costs totalled to SEK 54.9 million (50.2 million). Selling expenses totalled to SEK 12.1 million (9.7 million). Other costs totalled to SEK 22.3 million (19.0 million).
The operating costs for the period totalled to SEK 298.5 million (259.2 million). Personnel costs totalled to SEK 182.7 million (161.3 million). Selling expenses totalled to SEK 35.7 million (31.2 million). Other costs totalled to SEK 64.5 million (57.2 million). The deal
with Landbrugsstyrelsen is included in operating costs and amounts to SEK 15.1 million.
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 29.7 million (27.0 million) with an EBITDA margin of 27.9 % (28.1 %). Operating profit (EBIT) totalled to SEK 17.1 million (14.0 million) with an operating margin of 16.1 % (14.5 %). Net profit totalled to SEK 12.2 million (9.2 million). Exchange rate effects have affected EBITDA negatively by SEK 1.0 million in comparison with the previous year.
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 107.0 million (78.4 million) with an EBITDA margin of 30.5 % (26.2 %). Operating profit (EBIT) totalled to SEK 52.5 million (40.6 million) with an operating margin of 15.0 % (13.5 %). Net profit totalled to SEK 39.3 million (29.4 million). The deal with Landbrugsstyrelsen the operating profit positively with SEK 25.8 million. Exchange rate effects have affected EBITDA negatively by SEK 5.0 million in comparison with the previous year.
Cash and cash equivalents at the end of the period amounted to SEK 0.0 million (27.4 million). The company had interest-bearing debt at the end of the period totalling to SEK 34.7 million (69.8 million), whereof SEK 15.7 million (22.6 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 utilized with SEK 18.9 million (- million).
The company's net debt position thereby totalled to SEK 34.7 million (42.4 million), which corresponds to a net debt position of SEK 18.9 million (19.6 million) excluding IFRS 16-related debt.
By the end of the period the company's deferred tax assets attributable to accumulated losses amounted to SEK 9.9 million (SEK 9.8 million).
Equity at the end of the period amounted to SEK 415.2 million (405.3 million), which was equivalent to SEK 7.73 (7.58) 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 10.4 million (3.8 million) from the end of the year.
The equity ratio at the end of the period was 63 % (57 %).
Cash flow from operating activities for the period January - September totalled to SEK 47.2 million (65.4 million). Due to increased working capital tied up, the cash flow has been affected negatively compared to previous periods.
During the period January – September the company has redeemed the DKK loan in full.
During the period January – September the company amortized SEK 43.5 million (22.1 million). Whereof SEK 3.3 million (5.4 million) relates to leasing debts.
The existing bank overdraft facility totalling to SEK 50.0 million was utilized with SEK 18.9 million at the end of the period (- million). Leasing related liabilities amounted to SEK 15.7 million (22.6 million) at the end of the period. The company's interest-bearing debt at the end of the period was thereby SEK 34.7 million (69.8 million).
During the period, dividends were paid to the company's shareholders amounting to SEK 35.3 million (32.1 million).
As an outcome from the exercise of the personnel warrant program 2018/2021, 262,150 new shares were issued and payments amounting to SEK 4.7 million (4.6 million) has been added to the Company. At the same time the Company repurchased 234,850 warrants to a value of SEK 4.1 million (1.3 million).
During the period, a new warrant program (2021/2024) has been issued to the company's employees, amounting to 500,000 warrants, which provided the company with payments of SEK 1.3 million (0.8 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.
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 in 2020, 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 well-established and increasingly strong system supplier to the financial sector.
Formpipe is strategically well aligned with Temenos' growth areas within SaaS-transformation and expansion on the North American market. Formpipe's
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
products are sold and implemented as customers buy and implement Temenos' systems. During 2020 Temenos won 64 new clients and had 307 go-live across their customer base.4
Formpipe has a leading market position in the public sector in both Sweden and Denmark. For many 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 year5 . 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 20256 . Money that can then be returned to the public sector and help increase the level of service.
4 Temenos Annual Report 2020 5 Regeringen.se
6 www.danskindustri.dk
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:
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.
At the AGM on April 28, 2021, decisions were made regarding:
Adoption profit distribution.
Dividend of SEK 0.66 (0.60) per share.
During the period the personnel warrant program 2018/2021 was exercised. A total of 262,150 new shares were issued from this program. The number of shares and votes in the Company has therefore increased with 262,150 and share capital has increased with SEK 26,215. After the issue of new shares, the total number of outstanding shares and votes amounts to 53,726,057 and the share capital amounts to SEK 5,372,605.7.
No significant events have occurred during the period of July-September 2021.
The Chairman of the Board has convened the Nomination Committee and after consultation with the
company's largest shareholders in terms of votes as of September 30, 2021, the Nomination Committee consists of the following members:
The Nomination Committee will prepare proposals for the 2022 Annual General Meeting regarding, among other things, the Chairman of the Annual General Meeting, Board members, Chairman of the Board, the Board's remuneration, auditors, auditors' fees, the composition of the Nomination Committee and tasks prior to the 2023 Annual General Meeting.
Shareholders who wish to submit proposals to the Nomination Committee can do so via e-mail to [email protected]. Last day to submit proposals to the Nomination Committee prior to the Annual General Meeting of the Board 2022 is 16th of March 2022.
.
The number of employees at the end of the reporting period totalled to 276 persons (244 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 other changes in the risk and uncertainty factors for the group and the parent company.
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 1-20 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.
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.
| February 16, 2022 | Interim report Jan-Dec |
|---|---|
| April 27, 2022 | Interim report Jan-Mar |
| April 27, 2022 | Annual General Meeting |
| July 15, 2022 | Interim report Jan-Jun |
| October 27, 2022 | 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 29th of September, 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 | Jul-Sep | Jan-Sep | ||||
|---|---|---|---|---|---|---|
| (SEK 000) | 2021 | 2020 | 2021 | 2020 | ||
| Net Sales | 106 429 | 96 383 | 350 943 | 299 772 | ||
| Sales expenses | -12 064 | -9 718 | -35 716 | -31 198 | ||
| Other costs | -22 327 | -19 042 | -64 534 | -57 195 | ||
| Personnel costs | -54 945 | -50 192 | -182 746 | -161 318 | ||
| Capitalized work for own account | 12 592 | 9 606 | 39 094 | 28 347 | ||
| Operating profit/loss before depreciation/amortization | ||||||
| and non-comparative items (EBITDA) | 29 684 | 27 037 | 107 041 | 78 408 | ||
| Depreciation/amortization | -12 584 | -13 075 | -54 550 | -37 856 | ||
| Operating profit/loss (EBIT) | 17 100 | 13 962 | 52 490 | 40 552 | ||
| Financial income and expenses | -664 | -356 | -1 482 | -798 | ||
| Exchange rate differences | -455 | -1 593 | 281 | -1 389 | ||
| Tax | -3 742 | -2 835 | -11 945 | -8 988 | ||
| Net profit for the period | 12 239 | 9 179 | 39 345 | 29 376 | ||
| Of which the following relates to: | ||||||
| Parent company shareholders | 12 239 | 9 179 | 39 345 | 29 376 | ||
| Other comprehensive income | ||||||
| Translation differences | 6 736 | 2 939 | 10 356 | 3 819 | ||
| Other comprehensive income for the period, net after tax | 6 736 | 2 939 | 10 356 | 3 819 | ||
| Total comprehensive income for the period | 18 975 | 12 117 | 49 701 | 33 195 | ||
| Of which the following relates to: | ||||||
| Parent company shareholders | 18 975 | 12 117 | 49 701 | 33 195 | ||
| EBITDA margin, % | 27,9% | 28,1% | 30,5% | 26,2% | ||
| EBIT margin, % | 16,1% | 14,5% | 15,0% | 13,5% | ||
| Profit margin, % | 11,5% | 9,5% | 11,2% | 9,8% | ||
| Earnings per share attributable to the parent company's shareholders during the period (SEK per share) |
||||||
| - before dilution | 0,23 | 0,17 | 0,73 | 0,55 | ||
| - after dilution | 0,23 | 0,17 | 0,73 | 0,55 | ||
| Average no. of shares before dilution, in 000 | 53 726 | 53 464 | 53 580 | 53 303 | ||
| Average no. of shares after dilution, in 000 | 53 852 | 53 659 | 53 825 | 53 502 |
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| (SEK 000) | 2021 | 2020 | 2020 |
| Intangible assets | 528 922 | 538 274 | 523 623 |
| Tangible assets | 21 496 | 29 594 | 27 138 |
| Financial assets | 5 477 | 3 739 | 3 284 |
| Deferred tax asset | 9 896 | - | 3 645 |
| Current assets (excl. cash equivalents) | 107 091 | 96 489 | 104 235 |
| Cash equivalents | - | 27 370 | 58 593 |
| TOTAL ASSETS | 672 882 | 695 466 | 720 517 |
| Equity | 415 162 | 405 318 | 398 865 |
| Long-term liabilities | 55 055 | 85 317 | 71 145 |
| Current liabilities | 202 665 | 214 631 | 250 507 |
| TOTAL EQUITY AND LIABILITIES | 672 882 | 705 265 | 720 517 |
| Net interest-bearing debt (-) / cash (+) | -34 659 | -42 451 | -5 594 |
| Equity attributable to the parent company's shareholders | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Other | Profit/loss | ||||||||
| Share | contributed | Other | brought | ||||||
| (SEK 000) | capital | capital | reserves | forward | Total | ||||
| Balance at January 1, 2020 | 5 317 | 208 600 | 23 712 | 162 498 | 400 129 | ||||
| Comprehensive income | - | - | - | - | - | ||||
| Net profit for the period | - | - | - | 29 376 | 29 376 | ||||
| Other comprehensive income items | - | - | 3 819 | - | 3 819 | ||||
| Total comprehensive income | - | - | 3 819 | 29 376 | 33 195 | ||||
| Transaction with owners | |||||||||
| Dividend | - | - | - | -32 078 | -32 078 | ||||
| Share issue | 29 | 4 553 | - | - | 4 582 | ||||
| Repurchase of warrants | - | -1 260 | - | - | -1 260 | ||||
| Employee warrant schemes | - | 750 | - | - | 750 | ||||
| Total transaction with owners | 29 | 4 044 | - | -32 078 | -28 006 | ||||
| Balance at September 30, 2020 | 5 346 | 212 644 | 27 531 | 159 795 | 405 318 | ||||
| Balance at January 1, 2021 | 5 346 | 212 644 | 9 066 | 171 807 | 398 865 | ||||
| Comprehensive income | - | - | - | - | - | ||||
| Net profit for the period | - | - | - | 39 345 | 39 345 | ||||
| Other comprehensive income items | - | - | 10 356 | - | 10 356 | ||||
| Total comprehensive income | - | - | 10 356 | 39 345 | 49 701 | ||||
| Transaction with owners | |||||||||
| Acquisition of non-controlling interests | - | - | - | - | - | ||||
| Dividend | - | - | - | -35 286 | -35 286 | ||||
| Share issue | 26 | 4 666 | - | - | 4 692 | ||||
| Repurchase of warrants | - | -4 119 | - | - | -4 119 | ||||
| Employee warrant schemes | - | 1 310 | - | - | 1 310 | ||||
| Total transaction with owners | 26 | 1 857 | - | -35 286 | -33 403 | ||||
| Balance at September 30, 2021 | 5 373 | 214 501 | 19 422 | 175 866 | 415 162 |
| Jul-Sep | Jan-Sep | ||||
|---|---|---|---|---|---|
| (SEK 000) | 2021 | 2020 | 2021 | 2020 | |
| Cash flow from operating activities | |||||
| before working capital changes | 14 368 | 26 611 | 95 784 | 68 644 | |
| Cash flow from working capital changes | 15 669 | -23 473 | -48 605 | -3 209 | |
| Cash flow from operating activities | 30 037 | 3 138 | 47 179 | 65 435 | |
| Cash flow from investing activities | -13 947 | -57 866 | -45 160 | -79 554 | |
| Of which acquisition/divesture of business activities | - | -46 067 | - | -46 067 | |
| Cash flow from financing activities | -18 194 | 13 075 | -63 067 | 7 464 | |
| Of which dividend paid | - | -32 078 | -35 286 | -32 078 | |
| Cash flow for the period | -2 103 | -41 653 | -61 048 | -6 655 | |
| Change in cash and cash equivalent | |||||
| Cash and cash equivalent at the beginning of the period | 2 016 | 68 854 | 58 593 | 33 682 | |
| Translation differences | 88 | 169 | 2 455 | 342 | |
| Cash flow for the period | -2 103 | -41 653 | -61 048 | -6 655 | |
| Cash and cash equivalent at the end of the period | - | 27 370 | - | 27 370 |
| (SEK 000) | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 |
|---|---|---|---|---|---|---|---|---|
| License | 10 157 | 7 508 | 10 235 | 5 817 | 8 971 | 6 324 | 47 775 | 5 255 |
| SaaS | 12 323 | 12 884 | 13 373 | 13 755 | 14 571 | 14 171 | 15 458 | 17 038 |
| Support and maintenance | 46 705 | 47 952 | 48 849 | 49 552 | 52 592 | 52 214 | 52 749 | 53 332 |
| Software revenues | 69 185 | 68 344 | 72 457 | 69 123 | 76 134 | 72 709 | 115 982 | 75 625 |
| whereof recurring revenue | 59 028 | 60 836 | 62 222 | 63 307 | 67 163 | 66 385 | 68 208 | 70 369 |
| Deliveries | 33 874 | 34 749 | 27 839 | 27 260 | 27 219 | 28 832 | 26 991 | 30 805 |
| Net sales | 103 059 | 103 093 | 100 296 | 96 383 | 103 353 | 101 540 | 142 974 | 106 429 |
| Sales expenses | -12 918 | -11 210 | -10 270 | -9 718 | -10 083 | -12 018 | -11 634 | -12 064 |
| Other costs | -17 220 | -19 037 | -19 116 | -19 042 | -20 401 | -19 690 | -22 518 | -22 327 |
| Personnel costs | -52 979 | -54 870 | -56 256 | -50 192 | -58 794 | -63 218 | -64 583 | -54 945 |
| Capitalized development costs | 8 430 | 9 148 | 9 593 | 9 606 | 11 860 | 12 948 | 13 555 | 12 592 |
| Total operating expenses | -74 687 | -75 970 | -76 048 | -69 346 | -77 419 | -81 977 | -85 180 | -76 745 |
| EBITDA | 28 372 | 27 122 | 24 248 | 27 037 | 25 935 | 19 563 | 57 793 | 29 684 |
| % | 27,5% | 26,3% | 24,2% | 28,1% | 25,1% | 19,3% | 40,4% | 27,9% |
| Depreciation/amortization | -13 059 | -12 302 | -12 479 | -13 075 | -13 235 | -13 831 | -28 135 | -12 584 |
| EBIT | 15 314 | 14 820 | 11 769 | 13 962 | 12 699 | 5 732 | 29 659 | 17 100 |
| % | 14,9% | 14,4% | 11,7% | 14,5% | 12,3% | 5,6% | 20,7% | 16,1% |
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.
| Jul-Sep 2021 | Jan-Sep 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE DK |
||||||||
| (SEK 000) | Public | Public | Private | Other | Group | Public | Public | Private | Other | Group |
| License | 0 | 1 505 | 3 656 | 94 | 5 255 | 4 861 | 4 588 | 8 953 | 40 951 | 59 353 |
| SaaS | 3 046 | 1 782 | 12 210 | - | 17 038 | 9 577 | 4 944 | 32 146 | - | 46 667 |
| Support & Maintenance | 20 259 | 14 512 | 17 526 | 1 034 | 53 332 | 60 229 | 43 283 | 51 612 | 3 171 | 158 295 |
| Delivery | 3 397 | 20 693 | 6 715 | 0 | 30 805 | 11 679 | 54 323 | 20 625 | 0 | 86 627 |
| Net sales | 26 702 | 38 492 | 40 107 | 1 128 | 106 429 | 86 346 | 107 139 | 113 336 | 44 122 | 350 943 |
| Costs, external | -16 397 | -21 087 | -34 702 | -4 559 | -76 745 | -57 543 | -68 130 | -102 643 | -15 586 | -243 903 |
| Intercompany net | 99 | -102 | 4 | - | 0 | 254 -257 |
4 | - | 0 | |
| EBITDA | 10 404 | 17 302 | 5 409 | -3 431 | 29 684 | 29 057 | 38 751 | 10 696 | 28 536 | 107 041 |
| % | 39,0% | 45,0% | 13,5% | -304,0% | 27,9% | 33,7% | 36,2% | 9,4% | 64,7% | 30,5% |
| Jul-Sep 2020 | Jan-Sep 2020 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | SE | DK | |||||
| (SEK 000) | Public | Public | Private | Public | Public | Public | Public | Private | Other | Group |
| License | 888 | 594 | 4 335 | - | 5 817 | 3 813 | 5 318 | 14 428 | - | 23 559 |
| SaaS | 4 385 | 1 502 | 7 868 | - | 13 755 | 13 261 | 4 545 | 22 206 | - | 40 013 |
| Support & Maintenance | 19 686 | 12 847 | 15 886 | 1 133 | 49 552 | 59 856 | 38 368 | 44 669 | 3 461 | 146 353 |
| Delivery | 3 318 | 17 907 | 6 035 | 0 | 27 260 | 11 485 | 63 975 | 14 387 | 1 | 89 848 |
| Net sales | 28 277 | 32 849 | 34 124 | 1 133 | 96 383 | 88 415 | 112 205 | 95 690 | 3 462 | 299 772 |
| Costs, external | -11 806 | -23 222 | -26 700 | -7 629 | -69 357 | -47 535 | -80 972 | -76 184 | -16 685 | -221 376 |
| Intercompany net | -19 | 19 | 11 | - | 11 | 96 | -24 | -61 | - | 11 |
| EBITDA | 16 452 | 9 647 | 7 435 | -6 496 | 27 037 | 40 976 | 31 209 | 19 445 | -13 222 | 78 408 |
| % | 58,2% | 29,4% | 21,8% | -573,2% | 28,1% | 46,3% | 27,8% | 20,3% | -381,9% | 26,2% |
| Jul-Sep 2021 | Jan-Sep 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | |||||||
| (SEK 000) | Public | Public | Private | Other | Group | Public | Public | Private | Other | Group |
| ARR In - SaaS | 13,9 | 7,0 | 48,0 | - | 68,9 | 13,3 | 5,9 | 35,4 | - | 54,7 |
| ARR In - Support & Maint. | 82,8 | 54,6 | 69,5 | 3,8 | 210,8 | 81,6 | 51,5 | 68,3 | 4,0 | 205,5 |
| ARR In - FX | - | 0,3 | 1,3 | - | 1,6 | - | 0,9 | 3,9 | - | 4,8 |
| ARR In* | 96,7 | 61,9 | 118,8 | 3,8 | 281,3 | 95,0 | 58,4 | 107,5 | 4,0 | 264,9 |
| ACV - SaaS | 0,6 | 2,1 | 6,3 | - | 9,0 | 1,2 | 3,1 | 18,2 | - | 22,5 |
| ACV - Support & Maintenance | -0,3 | 1,7 | -1,0 | -0,0 | 0,4 | 0,9 | 4,2 | -1,6 | -0,3 | 3,2 |
| ACV - Net | 0,3 | 3,7 | 5,4 | -0,0 | 9,4 | 2,1 | 7,3 | 16,6 | -0,3 | 25,7 |
| ARR Out - SaaS | 14,5 | 9,1 | 54,0 | - | 77,5 | 14,5 | 9,1 | 54,0 | - | 77,5 |
| ARR Out - Support & Maint. | 82,5 | 56,6 | 70,2 | 3,8 | 213,1 | 82,5 | 56,6 | 70,2 | 3,8 | 213,1 |
| ARR Out | 97,0 | 65,7 | 124,2 | 3,8 | 290,6 | 97,0 | 65,7 | 124,2 | 3,8 | 290,6 |
| jul-sep 2020 | jan-sep 2020 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (SEK 000) | SE Public |
DK Public |
Private | Other Koncern | SE Public |
DK Public |
Private | Other Koncern | ||
| ARR In - SaaS | 13,8 | 5,1 | 30,9 | - | 49,8 | 12,7 | 6,2 | 26,1 | - | 45,0 |
| ARR In - Support & Maint. | 79,4 | 48,0 | 56,4 | 4,3 | 188,1 | 79,0 | 41,9 | 57,4 | 4,5 | 182,7 |
| ARR In - FX | - | 0,2 | 0,2 | - | 0,4 | - | 0,7 | 0,9 | - | 1,6 |
| ARR In - Acquired | - | - | 16,0 | - | 16,0 | - | - | 16,0 | - | 16,0 |
| ARR In | 93,2 | 53,3 | 103,4 | 4,3 | 254,2 | 91,6 | 48,8 | 100,4 | 4,5 | 245,2 |
| ACV - SaaS | -1,0 | -0,1 | 3,8 | - | 2,7 | 0,2 | -1,4 | 8,0 | - | 6,8 |
| ACV - Support & Maintenance | 0,4 | 2,8 | -1,6 | -0,1 | 1,6 | 0,9 | 8,7 | -2,7 | -0,3 | 6,5 |
| ACV - Net | -0,5 | 2,7 | 2,2 | -0,1 | 4,3 | 1,0 | 7,3 | 5,3 | -0,3 | 13,3 |
| ARR Out - SaaS | 12,9 | 4,9 | 34,5 | - | 52,2 | 12,9 | 4,9 | 34,5 | - | 52,2 |
| ARR Out - Support & Maint. | 79,8 | 51,1 | 71,2 | 4,2 | 206,3 | 79,8 | 51,1 | 71,2 | 4,2 | 206,3 |
| ARR Out | 92,7 | 56,0 | 105,7 | 4,2 | 258,5 | 92,7 | 56,0 | 105,7 | 4,2 | 258,5 |
* 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 | 2021-09-30 | |
| 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 | 262 150 |
| 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 | 53 726 057 |
| Jan-Sep | |||
|---|---|---|---|
| 2021 | 2020 | ||
| Employees at end of period | 276 | 244 | |
| Net sales, SEK 000 | 350 943 | 299 772 | |
| EBITDA, SEK 000 | 107 041 | 78 408 | |
| EBIT, SEK 000 | 52 490 | 40 552 | |
| Net profit for the period, SEK 000 | 39 345 | 29 376 | |
| EBITDA margin, % | 30,5% | 26,2% | |
| EBIT margin, % | 15,0% | 13,5% | |
| Profit margin, % | 11,2% | 9,8% | |
| Return on equity, %* | 12,5% | 10,3% | |
| Return on working capital, %* | 14,8% | 13,0% | |
| Equity ratio, % | 63% | 57% | |
| Equity per outstanding share at the end of the period, SEK | 7,73 | 7,58 | |
| Earnings per share - before dilution, SEK | 0,73 | 0,55 | |
| Earnings per share - after dilution, SEK | 0,73 | 0,55 | |
| Share price at the end of the period, SEK | 30,50 | 28,00 | |
* Ratios including P&L measures are based on the most recent 12-month period
| Jul-Sep | Jan-Sep | |||
|---|---|---|---|---|
| (SEK 000) | 2021 | 2020 | 2021 | 2020 |
| Net sales | 28 961 | 30 072 | 92 706 | 97 131 |
| Operating expenses | ||||
| Sales expenses | -3 809 | -1 122 | -6 759 | -3 067 |
| Other costs | -11 607 | -11 396 | -35 347 | -32 332 |
| Personnel costs | -17 556 | -15 935 | -60 572 | -52 664 |
| Depreciation/amortization | -805 | -1 585 | -2 136 | -4 673 |
| Total operating expenses | -33 776 | -30 038 | -104 814 | -92 737 |
| Operating profit/loss | -4 815 | 34 | -12 108 | 4 395 |
| Other financial items | -1 192 | -356 | -1 765 | 193 |
| Tax | - | - | - | 2 |
| Net profit for the period | -6 007 | -322 | -13 873 | 4 590 |
| 30 Sep | 31 Dec |
| 30 Sep | |||
|---|---|---|---|
| (SEK 000) | 2021 | 2020 | 2020 |
| Intangible assets | 9 072 | 7 560 | 6 851 |
| Tangible assets | 1 090 | 854 | 981 |
| Financial assets | 348 606 | 346 809 | 346 446 |
| Current assets (excl. cash equivalents) | 58 866 | 44 496 | 44 787 |
| Cash and bank balances | - | - | 30 666 |
| TOTAL ASSETS | 417 635 | 399 718 | 429 732 |
| Restricted equity | 23 063 | 23 037 | 23 037 |
| Non-restricted equity | 120 096 | 167 628 | 167 398 |
| Total equity | 143 159 | 190 665 | 190 435 |
| Long-term liabilities | - | 32 310 | 29 434 |
| Current liabilities | 274 477 | 176 744 | 209 863 |
| TOTAL EQUITY AND LIABILITIES | 417 635 | 399 718 | 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
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| (SEK 000) | 2021 | 2020 | 2020 |
| Pledged assets | - | - | - |
| Contingent liabilities | - | - | - |
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
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 (ACV +) and lost (ACV -) 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.
Revaluation of ARR IN to the closing balance exchange rates.
Other costs and personnel costs
Sales costs, other costs, personnel costs, capitalized development and depreciation.
Earnings before depreciation, amortization, acquisition-related 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, acquisition-related 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.
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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