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Formpipe Software
Quarterly Report • Oct 27, 2022
3159_10-q_2022-10-27_9ff0fa3e-bb97-4a24-ad97-dbe875b61178.pdf
Quarterly Report
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| 2022 | 2021 | |
|---|---|---|
| Net sales of SEK | 117 m | (106 m) |
| Recurring revenues of SEK | 81 m | (70 m) |
| which corresponds to % of net sales | 69 % | (66 %) |
| EBITDA SEK | 21 m | (30 m) |
| EBITDA margin | 18 % | (28 %) |
| EBIT | 6 m | (17 m) |
| EBIT margin | 5 % | (16 %) |
| Net profit SEK | 3 m | (12 m) |
| Net profit margin | 3 % | (11 %) |
| EPS before dilution SEK | 0,06 | (0.23) |
| Cash flow from operating activities SEK | 9 m | (30 m) |
| ACV SEK | 6 m | (10 m) |
| ARR SEK | 345 m | (291 m) |
| 2022 | 2021 | 2021* | |
|---|---|---|---|
| Net sales of SEK | 357 m | (351 m) | (310 m) |
| Recurring revenues of SEK | 236 m | (205 m) | (205 m) |
| which corresponds to % of net sales | 66 % | (58 %) | (66 %) |
| EBITDA SEK | 52 m | (107 m) | (67 m) |
| EBITDA margin | 15 % | (31 %) | (22 %) |
| EBIT | 10 m | (53 m) | (27 m) |
| EBIT margin | 3 % | (15 %) | (9 %) |
| Net profit SEK | 4 m | (39 m) | (19 m) |
| Net profit margin | 1 % | (11 %) | (6 %) |
| EPS before dilution SEK | 0.07 | (0.73) | (0,36) |
| Cash flow from operating activities SEK | 17 m | (47 m) | |
| ACV SEK | 25 m | (26 m) | |
| ARR SEK | 345 m | (291 m) |
| Jul-Sep | Jan-Sep | Full year | |||
|---|---|---|---|---|---|
| (SEK Million) | 2022 | 2021 | 2022 | 2021 | 2021* R12 |
| Net sales | 117,4 | 106,4 | 357,3 | 350,9 | 310,0 |
| whereof recurring revenue | 80,9 | 70,4 | 235,8 | 205,0 | 205,0 |
| EBITDA | 20,6 | 29,7 | 52,3 | 107,0 | 66,8 |
| Margin, % | 17,6% | 27,9% | 14,6% | 30,5% | 21,6% |
| EBIT | 6,2 | 17,1 | 10,0 | 52,5 | 26,7 |
| Margin, % | 5,3% | 16,1% | 2,8% | 15,0% | 8,6% |
*Comparative numbers excluding the one-off agreement with Danish Landbrugsstyrelsen in June, 2021.
This is a translation of the original Swedish version. In the event of any discrepancies between the two versions, the original Swedish version shall take precedence. The information was submitted for publication, at 08.45 CET, 27 October 2022
"19 % increase in ARR compared to last year"
Christian Sundin, CEO Formpipe
Stable quarter with the start of a positive earnings trend.
We are executing on our growth strategy and showing 10 % year-on-year growth for the third quarter. We are now starting to see a positive trend where our scalable business model gradually will generate higher margins the coming quarters.
The investments we made in our own delivery organization within the Swedish public sector business area and the expansion within the Private business area are now beginning to yeald returns. However, the quarter is weighed down by temporarily lower delivery revenue within the Danish public sector business area.
We continue to deliver strong ARR growth. Compared to the previous year, we are growing ARR by as much as 19 %, from SEK 291 million to SEK 345 million.
Delivery revenue continues to increase in Sweden as a result of our transformation to become a comprehensive supplier of e-government to the public sector. Compared to the previous year, we more than double the delivery revenue, both through organic growth and thanks to the acquisition of Alkemit.
After the end of the quarter, we are very pleased to be able to announce that we have been awarded a large deal by the Danish Board of Agriculture. The work to win the business has, however, affected the billability in the quarter and resulted in temporarily lower delivery revenue in the Danish business than normal. We have also launched a new version of our product TAS, which in the short term negatively affected delivery revenue.
We continue to show strong growth in SaaS sales. Compared to the previous year, our ARR has increased by 47%, from SEK 78 to 114 million. Most of this growth takes place in the Private business area, which shows a growth of 53% in SaaS-ARR. Within the Private business area, demand remains strong within the Microsoft Dynamics business in all markets. However, we note that the banking sector shows longer sale cycles, which affects are deals with Temenos.
In conclusion, we have a stable quarter in line with our plans and look forward to the closing of 2022.
Christian Sundin, CEO Formpipe
July - September 2022
Revenue split, Jan - Sep 2022
Net sales for the period increased by 10 % compared to previous year and totalled to SEK 117.4 million (106.4 million). Software revenue increased by 15 % from the previous year and totalled to SEK 84.3 million (75.6 million).
Total recurring revenue for the period increased by 15 % from the previous year and totalled to SEK 80.9 million (70.4 million), which is equivalent to 69 % of net sales (66 %). Exchange rate effects have affected net sales favourably by SEK 3.5 million in comparison with the previous year.
January - September 2022
Net sales for the period increased by 2 % compared to previous year and totalled to SEK 357.3 million (350.9 million). Software revenue decreased by 4 % from the previous year and totalled to SEK 328.7 million (340.4 million).
Compared to previous year, adjusted for the effects of the transaction with Landbruggsstyrelsen, revenue increased by 15 % to SEK 357.3 million (310.0 million). Software revenue decreased by 4 % to SEK 328.7 million (340.4 million).
Total recurring revenue for the period increased by 15 % from the previous year and totalled to SEK 235.8 million (205.0 million), which is equivalent to 66 % of net sales (58 %). Exchange rate effects have affected net sales favourably by SEK 10.3 million in comparison with the previous year.
Recurring revenue, rolling 12 m, mSEK
Annual recurring revenue (ARR), mSEK
July – September 2022
The operating costs for the period totalled to SEK 111.2 million (89.3 million). Personnel costs totalled to SEK 65.0 million (54.9 million). Selling expenses
totalled to SEK 16.9 million (12.1 million). Other costs totalled to SEK 28.1 million (22.3 million). Exchange rate effects have increased expenses by SEK 4.6 million in comparison with the previous year.
January – September 2022
The operating costs for the period totalled to SEK 347.3 million (298.5 million). Personnel costs totalled to SEK 208.6 million (182.7 million). Selling expenses totalled to SEK 48.7 million (35.7 million). Other costs totalled to SEK 85.8 million (64.5 million). Exchange rate effects have increased expenses by SEK 13.7 million in comparison with the previous year.
Recurring revenues in relation to fixed operating costs, rolling 12 m, mSEK
July – September 2022
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 20.6 million (29.7 million) with an EBITDA margin of 17.5 % (27.9 %). Operating profit (EBIT) totalled to SEK 6.2 million (17.1 million) with an operating margin of 5.2 % (16.1 %). Net profit totalled to SEK 3.4 million (12.2 million). Exchange rate effects have affected EBITDA unfavourably by SEK 1.1 million in comparison with the previous year.
January – September 2022
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 52.3 million (107.0 million) with an EBITDA margin of 14.6 % (30.5 %). Operating profit (EBIT) totalled to SEK 10.0 million (52.5 million) with an operating margin of 2.8 % (15.0 %). Net profit totalled to SEK 3.6 million (39.3 million). Exchange rate effects have affected EBITDA unfavourably by SEK 2.4 million in comparison with the previous year.
Compared to previous year, adjusted for the effects of the transaction with Landbruggsstyrelsen, EBITDA totalled SEK 52.3 million (66.8 million), with a margin of 14.6 % (21.6 %). Operating profit totalled to SEK 10.0 million (26.7 million) with an operation margin of 2.8 % (8.6 %). Net profit totalled to SEK 3.6 million (19.2 million).
Sales and EBITDA margin, mSEK
Cash equivalents
Cash and cash equivalents at the end of the period amounted to SEK 0.0 million (0.0 million). The company had interest-bearing debt at the end of the period totalling to SEK 82.2 million (34.7 million), whereof SEK 10.4 million (15.7 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 36.8 million (18.9 million).
The company's net debt position thereby totalled to SEK 82.2 million (34.7 million), which corresponds to a net debt position of SEK 71.8 million (19.6 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 11.5 million (SEK 9.7 million).
Equity
Equity at the end of the period amounted to SEK 431.3 million (415.2 million), which was equivalent to SEK 7.95 (7.73) 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 21.0 million (10.4 million) from the end of the year.
Equity ratio
The equity ratio at the end of the period was 66 % (63 %).
Cash flow from operating activities
Cash flow from operating activities for the period January - September totalled to SEK 17.1 million (47.2 million).
Investments and acquisitions
Total investments for the period January – September amounted to SEK 81.8 million (45.0 million).
Investments in intangible assets totalled to SEK 40.0 million (45.2 million) and refer to capitalized product development costs.
Investments in tangible and financial assets totalled to SEK 11.5 million (2.1 million) wheroff 6.7 million (0.6 million) is relating to lease assets classified according to IFRS 16.
Acquisitions of subsidiaries amounted to SEK 30.3 million (- million).
Financing
During the period January – September a new loan of SEK 40.0 million was raised as payment for the acquisition of subsidiaries.
During the period January – September the company amortized SEK 7.2 million (43.5 million). Whereof SEK 2.2 million (3.3 million) relates to leasing debts.
The existing bank overdraft facility totalling to SEK 50.0 million was utilized with 36.8 million at the end of the period (18.9 million). Leasing related liabilities amounted to SEK 10.4 million (15.7 million) at the end of the period. The company's interest-bearing debt at the end of the period was thereby SEK 82.2 million (34.7 million).
During the period, dividends were paid to the company's shareholders amounting to SEK 37.8 million (35.3 million).
As an outcome from the exercise of the personnel warrant program 2019/2022, 252,800 new shares were issued and payments amounting to SEK 6.5 million (4.7 million) has been added to the Company. At the same time the Company repurchased 226,200 warrants to a value of SEK 2.2 million (4.1 million).
During the period, a new warrant program (2022/2025) has been issued to the company's employees, amounting to 93,800 warrants, which provided the company with payments of SEK 0.3 million (1.3 million).
Data and information become more and more important for the financial development: it is the foundation for many new products and services, which leads to productivity and resource efficiency gains in all sectors of the economy. Being able to take advantage of the possibilities of digitalization has become one of the most important issues of our time. The benefits of being able to collect, process and present data are extensive.
Formpipe's products are used to create, store, distribute, automate, relocate, archive and manage information, data and metadata regarding e.g. scanned documents, e-mail, reports, records, business documents or information from other source systems. The goal is to be able to refine and analyze content from one or more sources, to thereby provide the right insights by the right people receiving relevant information when they need it. It is in the Content Services (previously Enterprise Content Management) market that Formpipe has grown to become a market leader in the public sector and a strong challenger in the private sector where we digitalize and streamline customer communication in sectors such as retail, finance and manufacturing.
The growth in the market is fuelled in large part by the organizational and corporate-wide need to streamline operations and meet legal requirements and regulations. To be able to get the value out of the collective amount of information at companies and organizations, applications and services are needed – in order to securely – collaborate, search, analyze, process and distribute data and content. Growth drivers tend to gain strength as the amount of data and information increases.
Gartner's forecast for the global market is an average annual growth (CAGR) of 10 percent in 2020-2024. The Content Services market is estimated to be USD1 11 billion in system revenue.
An important part of the change of the Content Services market is also that the development is moving increasingly towards cloud-based solutions, where the customers pay for what is used and where costs for development, operations, maintenance, upgrade and support are included in the running agreement. The transition to SaaS is taking place very quickly now and Gartner estimates that the SaaS revenues will reach up to 60 percent of the total sales of software in 20242 .
This development is well in line with Formpipe's reality where growing numbers of the Company's customers choose to shift to Formpipe's cloud services for the standard products and with the Company's development of service modules that can process information both from Formpipe's existing systems and other systems.
Private sector
In the private sector, the business revolves around the product Lasernet. Through a certified partner network, Formpipe addresses the global market for ERP and banking systems. The most common purchase of Lasernet and Formpipe's complementary offering Autoform DM takes place when implementing, or upgrading to, Microsoft Dynamics 365 in industries such as manufacturing, retail and utilities and Temenos Transact and Infinity in banking and finance. The partner network thus primarily consists of implementation partners of these systems and constitutes a sales and delivery channel for Formpipe's offering.
The cloud-based ERP system Microsoft Dynamics 365 grew by 45 percent in the second quarter of Microsoft's fiscal year 2022. Temenos grew its SaaS business by 30 percent in the third quarter of 2021 with the largest ACV contribution coming from Europe and the United States.
The growth of Formpipe's business in the private sector is based on being included in more and more of Microsoft's and Temenos' business and offering Lasernet and Autoform DM as SaaS. In the Dynamics market, this is done via a globally certified partner network and with Temenos through a strengthened partner relationship.
1 Enterprise Application Software Forecast Q420, Gartner, Inc. 2020
2 Market Trends: Cloud Shift — 2020 Through 2024, Gartner, Inc. 2020
Public Sector
Formpipe's strategy in the public sector is based on the long-term goal of becoming the preferred provider of digital government in the EU.
Hundreds of authorities, municipalities, universities and state- and municipally owned companies today build their public administration around Formpipe's products. Based on Formpipe's market share for its platforms in Denmark and Sweden, the business is growing mainly through additional sales of add-ons to these, which are primarily co-created in customer projects. Customers' needs revolve around the requirements for a more efficient, innovative and data-driven business.
The focus for these add-ons is on business processes linked to record keeping, such as archiveproof and secure digital signatures or an application for collaboration on meeting documents for municipal politicians.
In the Swedish public sector, Formpipe has a stable customer base in municipalities, regions and authorities.
In the Swedish public sector, up to SEK 45 billion is invested in IT every year.
The Swedish government's ambition is for state authorities, municipalities and regions to be the best in the world at using the opportunities of digitalisation to create an efficient public sector - a simpler everyday life for private individuals and companies, more jobs and increased welfare. Digital solutions and automation are an important component for meeting the growing welfare needs and at the same time increasing the service to the citizens.
Formpipe is also a leading supplier of digital government software in the Danish public sector. Digital solutions and automation create opportunities to meet the growing welfare needs and at the same time increase the service to the citizens.
The employers' organization Dansk Industri believes that a modernisation and digitalisation of the public sector can free up DKK 20 billion by 2025. Money that can then be returned to the public sector and contribute to increasing the level of service.
Significant events
Formpipe acquires Swedish partner Alkemit
Formpipe acquires Alkemit AB, a successful partner for Formpipe's products within the Swedish public sector with SEK 25 million turnover and 19 competent employees. Alkemit has successfully built a delivery organisation around Formpipe's products, offering solution management, development projects and support. Alkemit has verified processes in place that swiftly have increased their business with existing as well as new clients. With the deal, the company increases its competence and capacity to grow its footprint at customers – a step in the long-term strategy to become a 'one-stop-shop vendor' of digital government.
Formpipe acquires 100% of the shares in Alkemit AB. The purchase price amounts to SEK 33 million (Enterprise Value) that is paid in connection with the takeover effective per today and is financed through a combination of own cash (SEK 23 million) and newly issued shares (SEK 10 million to key individuals in the upcoming business). Alkemit's turnover amounted to SEK 25 million with SEK 4 million in operating profit.
Increased number of shares
In connection with the acquisition of Alkemit AB, 238,968 new shares were issued as partial payment. The number of shares and votes in the Company has therefore increased with 238,968 and share capital has increased with SEK 23,896.80. After the issue of new shares, the total number of outstanding shares and votes amounts to 53,965,025 and the share capital amounts to SEK 5,396,502.50.
Formpipe awarded Solution Provider of the Year 2021 by Temenos
Over the past 15 years, Formpipe has continued to develop and grow its partnership with Temenos and can proudly state that Formpipe's software will be among the first partner solutions available on Temenos' cloud platform, Temenos Banking Cloud.
Almost 100 financial institutions are currently using Formpipe's pre-integrated solutions, Lasernet and Autoform DM, both of which are available on Temenos Exchange, (Temenos' marketplace for
partner solutions). Formpipe's software provides enriched and branded customer-facing documents and archiving across all channels within the Temenos ecosystem.
Formpipe is proud to be one of Temenos' major revenue-generating solution providers and look forward to continued success together in the future.
Formpipe signs new agreement regarding maintenance and development services for the City of Malmö
Formpipe has signed an exclusive agreement with the City of Malmö regarding maintenance and further development of the city's case- and document management system, including associated modules. The agreement runs over 10 years and the order value amounts to a minimum of SEK 15 million in the form of a recurring fee for support and management. Including additional fees for new development and adaptations of existing systems, the order value is estimated to amount to approximately SEK 50 million according to Malmö City's estimate.
The case- and document management system Platina by Formpipe has been created and developed in Sweden for the Swedish public sector, a flexible and scalable system that is configured to be able to meet business-specific needs in the public sector.
The agreement has been subject to the usual standstill period within the framework of the rules that apply in a public procurement and enters into force immediately.
Increased number of shares and votes in Formpipe
Following the exercise of the warrant program 2019/2022 new shares have been issued and the number of shares and votes in the company has increased by 252,800 and the share capital has increased by SEK 25,280.
Following this increase, the number of outstanding shares and votes in the company amounts to 54,217,825 and the share capital amounts to SEK 5,421,782.50.
No significant events have occurred during the period of July-September 2022.
Formpipe signs a multi-year agreement with the Danish Board of Agriculture to a business value of approximately DKK 80- 100 million.
The Danish Board of Agriculture
(Landbrugsstyrelsen) has carried out a procurement regarding continued operation and development of one of the agency's administrative systems. Formpipe has been chosen as the main supplier in a service agreement where Formpipe's responsibility includes development and system maintenance. The assignment is performed in collaboration with a subcontractor with responsibility for system support.
The agreement runs over four years with options to extend with additional three years, and the order value amounts to a minimum of DKK 7 million in the form of a yearly recurring fee to Formpipe for system management and maintenance. Including additional fees for development and adaptations of existing solutions, the order value is estimated to amount to a total of DKK 200-250 million, of which an estimated 40 percent pertains to Formpipe's services.
The agreement is subject to the usual standstill period within the framework of the rules that apply in a public procurement, which means that it may be appealed. The standstill period runs until October 31 2022. Formpipe will notify the market if anything material in the agreement changes or if the agreement is appealed.
Employees
The number of employees at the end of the reporting period totalled to 284 persons (276 persons).
Risks and uncertainty factors
The significant risk and uncertainty factors for the group and the parent company, which include business and financial risks, are described in the annual report for the last financial year. During the period there have been no other changes in the risk and uncertainty factors for the group and the parent company.
Transactions with related parties
No related party transactions have occurred during the period.
Accounting policies
The group's financial reports are prepared in accordance with International Financial Reporting Standards (IFRS) in the way in which they have been adopted by the European Union, the Swedish Annual Accounts Act, RFR 1 Additional Accounting Regulations for Groups issued by the Swedish Financial Reporting Board and in accordance with the regulations that the Stockholm Stock Exchange stipulates for companies listed on Nasdaq Stockholm. Preparing financial reports in accordance with IFRS requires that the company management makes accounting evaluations and estimates and makes assumptions that affect the application of the accounting policies and the reported values of assets, liabilities, income and costs. The actual result can differ from these estimates and evaluations. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The interim report covers pages 1-20 and the interim report on pages 1-9 is thus an integral part of this financial report. The most important accounting policies according to IFRS, which constitute the accounting standard for the preparation of this interim report, are stated in the company's most recently published annual report.
The financial reports of the parent company have been pre-pared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities issued by the Swedish Financial Reporting Board. The same accounting policies and methods of calculation have been applied in the interim report and in the most recent annual report.
About Formpipe
Formpipe Software AB (publ) is a Swedish software company in the field of Content Services (previously Enterprise Content Management, ECM). Several thousand customers in more than 60 countries currently entrust us and our services. Our marketleading position gives us clear competitive advantages in the development and sale of software for effective and valuable information services. The Company focuses on products for document and records management, automation of informationintensive business processes, e-archives, data quality and smart management of customer communication.
Formpipe was founded in 2004 and has offices in Sweden, Denmark, United Kingdom, USA and Germany. The Formpipe share is listed on Nasdaq Stockholm.
Calendar for financial information
| February 15, 2023 | Interim report Jan-Dec |
|---|---|
| April 26, 2023 | Interim report Jan-Mar |
| April 27, 2023 | Annual meeting 2023 |
| July 14, 2023 | Interim report Jan-Jun |
| October 25, 2023 | Interim report Jan-Sep |
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 October 27, 2022 Formpipe Software AB The Board of Directors and the Managing Director
Formpipe Software AB (publ) Swedish company reg. no.: 556668-6605Sveavägen 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) | 2022 | 2021 | 2022 | 2021 |
| Net Sales | 117 395 | 106 429 | 357 321 | 350 943 |
| Sales expenses | -16 869 | -12 064 | -48 685 | -35 716 |
| Other costs | -28 089 | -22 327 | -85 774 | -64 534 |
| Personnel costs | -64 971 | -54 945 | -208 642 | -182 746 |
| Capitalized work for own account | 13 153 | 12 592 | 38 119 | 39 094 |
| Operating profit/loss before depreciation/amortization | ||||
| and non-comparative items (EBITDA) | 20 619 | 29 684 | 52 340 | 107 041 |
| Depreciation/amortization | -14 432 | -12 584 | -42 334 | -54 550 |
| Operating profit/loss (EBIT) | 6 187 | 17 100 | 10 006 | 52 490 |
| Financial income and expenses | -946 | -664 | -1 628 | -1 482 |
| Exchange rate differences | -1 803 | -455 | -2 170 | 281 |
| Tax | -36 | -3 742 | -2 559 | -11 945 |
| Net profit for the period | 3 403 | 12 239 | 3 649 | 39 345 |
| Of which the following relates to: | ||||
| Parent company shareholders | 3 403 | 12 239 | 3 649 | 39 345 |
| Other comprehensive income | ||||
| Translation differences | 9 694 | 6 736 | 21 011 | 10 356 |
| Other comprehensive income for the period, net after tax | 9 694 | 6 736 | 21 011 | 10 356 |
| Total comprehensive income for the period | 13 097 | 18 975 | 24 660 | 49 701 |
| Of which the following relates to: | ||||
| Parent company shareholders | 13 097 | 18 975 | 24 660 | 49 701 |
| Shareholding with no controlling influence | - | - | - | - |
| EBITDA margin, % | 17,6% | 27,9% | 14,6% | 30,5% |
| EBIT margin, % | 5,3% | 16,1% | 2,8% | 15,0% |
| Profit margin, % | 2,9% | 11,5% | 1,0% | 11,2% |
| Earnings per share attributable to the parent company's shareholders during the | ||||
| period (SEK per share) | ||||
| - before dilution | 0,06 | 0,23 | 0,07 | 0,73 |
| - after dilution | 0,06 | 0,23 | 0,07 | 0,73 |
| Average no. of shares before dilution, in 000 | 54 218 | 53 726 | 54 077 | 53 580 |
| Average no. of shares after dilution, in 000 | 54 218 | 53 852 | 54 173 | 53 825 |
Financial Tables
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| (SEK 000) | 2022 | 2021 | 2021 |
| Intangible assets | 601 601 | 528 922 | 537 533 |
| Tangible assets | 19 332 | 21 496 | 19 508 |
| Financial assets | 4 286 | 5 477 | 5 014 |
| Deferred tax asset | 31 627 | 9 896 | 4 182 |
| Current assets (excl. cash equivalents) | 111 863 | 107 091 | 119 947 |
| Cash equivalents | - | - | 18 065 |
| TOTAL ASSETS | 768 710 | 672 882 | 704 249 |
| Equity | 431 279 | 415 162 | 429 638 |
| Long-term liabilities | 83 146 | 55 055 | 37 665 |
| Current liabilities | 254 284 | 202 665 | 236 947 |
| TOTAL EQUITY AND LIABILITIES | 768 710 | 672 882 | 704 249 |
| Net interest-bearing debt (-) / cash (+) | -82 166 | -34 659 | 4 347 |
| 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, 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 | ||||||||||
| 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 | |||||
| Balance at January 1, 2022 | 5 373 | 214 501 | 22 808 | 186 958 | 429 640 | |||||
| Comprehensive income | - | - | - | - | - | |||||
| Net profit for the period | - | - | - | 3 649 | 3 649 | |||||
| Other comprehensive income items | - | - | 21 011 | - | 21 011 | |||||
| Total comprehensive income | - | - | 21 011 | 3 649 | 24 660 | |||||
| Transaction with owners | ||||||||||
| Dividend | - | - | - | -37 776 | -37 776 | |||||
| Share issue | 49 | 16 578 | - | - | 16 627 | |||||
| Repurchase of warrants | - | -2 151 | - | - | -2 151 | |||||
| Employee warrant schemes | - | 279 | - | - | 279 | |||||
| Total transaction with owners | 49 | 14 705 | - | -37 776 | -23 021 | |||||
| Balance at September 30, 2022 | 5 422 | 229 207 | 43 819 | 152 832 | 431 279 |
| Jul-Sep | Jan-Sep | |||||
|---|---|---|---|---|---|---|
| (SEK 000) | 2022 | 2021 | 2022 | 2021 | ||
| Cash flow from operating activities | ||||||
| before working capital changes | 9 238 | 14 368 | 33 405 | 95 784 | ||
| Cash flow from working capital changes | 174 | 15 669 | -16 331 | -48 605 | ||
| Cash flow from operating activities | 9 412 | 30 037 | 17 074 | 47 179 | ||
| Cash flow from investing activities | -21 477 | -13 947 | -81 804 | -45 160 | ||
| Of which acquisition/divesture of business activities | - | - | -30 252 | - | ||
| Cash flow from financing activities | 11 168 | -18 194 | 43 596 | -63 067 | ||
| Of which dividend paid | - | - | -37 776 | -35 286 | ||
| Cash flow for the period | -897 | -2 103 | -21 134 | -61 048 | ||
| Change in cash and cash equivalent | ||||||
| Cash and cash equivalent at the beginning of the period | - | 2 016 | 18 065 | 58 593 | ||
| Translation differences | 897 | 88 | 3 069 | 2 455 | ||
| Cash flow for the period | -897 | -2 103 | -21 134 | -61 048 | ||
| Cash and cash equivalent at the end of the period | - | - | - | - |
| (SEK 000) | Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 |
|---|---|---|---|---|---|---|---|---|
| License | 8 971 | 6 324 | 5 255 | 9 923 | 3 691 | 2 437 | 3 426 | |
| SaaS | 14 571 | 14 171 | 15 458 | 17 038 | 19 427 | 20 832 | 22 192 | 24 481 |
| Support and maintenance | 52 592 | 52 214 | 52 749 | 53 332 | 53 990 | 55 685 | 56 175 | 56 424 |
| Software revenues | 76 134 | 72 709 | 115 982 | 75 625 | 83 340 | 80 208 | 80 805 | 84 330 |
| whereof recurring revenue | 67 163 | 66 385 | 68 208 | 70 369 | 73 418 | 76 517 | 78 368 | 80 905 |
| Deliveries | 27 219 | 28 832 | 26 991 | 30 805 | 38 921 | 40 139 | 38 775 | 33 064 |
| Net sales | 103 353 | 101 540 | 142 974 | 106 429 | 122 261 | 120 347 | 119 580 | 117 395 |
| Sales expenses | -10 083 | -12 018 | -11 634 | -12 064 | -15 200 | -16 056 | -15 760 | -16 869 |
| Other costs | -20 401 | -19 690 | -22 518 | -22 327 | -26 879 | -27 005 | -30 680 | -28 089 |
| Personnel costs | -58 794 | -63 218 | -64 583 | -54 945 | -65 486 | -72 124 | -71 546 | -64 971 |
| Capitalized development costs | 11 860 | 12 948 | 13 555 | 12 592 | 13 377 | 11 881 | 13 085 | 13 153 |
| Total operating expenses | -77 419 | -81 977 | -85 180 | -76 745 | -94 189 | -103 305 | -104 901 | -96 776 |
| EBITDA | 25 935 | 19 563 | 57 793 | 29 684 | 28 072 | 17 042 | 14 679 | 20 619 |
| % | 25,1% | 19,3% | 40,4% | 27,9% | 23,0% | 14,2% | 12,3% | 17,6% |
| Depreciation/amortization | -13 235 | -13 831 | -28 135 | -12 584 | -12 046 | -13 511 | -14 392 | -14 432 |
| EBIT | 12 699 | 5 732 | 29 659 | 17 100 | 16 027 | 3 531 | 287 | 6 187 |
| % | 12,3% | 5,6% | 20,7% | 16,1% | 13,1% | 2,9% | 0,2% | 5,3% |
Financial Tables
The Group's segments are divided according to which customer groups they target. The segments are divided into SE Public, DK Public, Private and Other and reflect the Group's internal reporting and follow-up of Group management.
The SE Public and DK Public segments find their customers in Sweden's and Denmark's public sectors. Segment Private collects the Group's offers that are aimed at customers outside the public sector and are not bound to any particular geographic market. Segment Other includes the Group's older products that are not included in any of the other segments and the Group's overhead costs.
In the Group's follow-up on the segments, the intercompany invoicing (revenues and costs) is presented as a net because of the substantial invoicing within the segments related to royalties to IP owning entities. The line Intercompany net includes de intercompany revenues and costs netted out to reflect a more accurate view of the segments.
| Jul-Sep 2022 | Jan-Sep 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | ||||||||
| (SEK 000) | Public | Public | Private | Other | Group | Public | Public | Private | Other | Group | |
| License | 118 | 103 | 3 205 | - | 3 426 | 1 631 | 987 | 6 936 | - | 9 553 | |
| SaaS | 4 135 | 2 036 | 18 310 | - | 24 481 | 11 298 | 5 802 | 50 405 | - | 67 505 | |
| Support & Maintenance | 20 962 | 16 394 | 18 114 | 954 | 56 424 | 63 163 | 47 812 | 54 404 | 2 906 | 168 284 | |
| Delivery | 7 921 | 16 936 | 8 207 | -0 | 33 064 | 29 382 | 59 206 | 23 391 | -0 | 111 979 | |
| Net sales | 33 135 | 35 470 | 47 836 | 954 | 117 395 | 105 473 | 113 808 | 135 135 | 2 906 | 357 321 | |
| Costs, external | -21 721 | -26 687 | -41 938 | -6 429 | -96 776 | -74 255 | -84 102 | -125 315 | -21 309 | -304 982 | |
| Intercompany net | 108 | -107 | -1 | - | - | 394 | -394 | - | - | - | |
| EBITDA | 11 521 | 8 676 | 5 897 | -5 475 | 20 619 | 31 612 | 29 311 | 9 820 | -18 404 | 52 340 | |
| % | 34,8% | 24,5% | 12,3% | -573,8% | 17,6% | 30,0% | 25,8% | 7,3% | -633,4% | 14,6% |
| Jul-Sep 2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | |||||||
| (SEK 000) | Public | Public | Private | Other Koncern | Public | Public | Private | Other Koncern | ||
| License | 0 | 1 505 | 3 656 | 94 | 5 255 | 4 861 | 4 588 | 8 953 | 40 951 | |
| SaaS | 3 046 | 1 782 | 12 210 | - | 17 038 | 9 577 | 4 944 | 32 146 | - | |
| 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 | |
| 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 | 3 | - | - | 254 | -257 | 3 | - | |
| 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% |
| Jul-Sep 2022 | Jan-Sep 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | ||||||||
| (Mkr) | Public | Public | Private | Other | Group | Public | Public | Private | Other | Group | |
| ARR In - SaaS | 19,0 | 11,9 | 73,8 | - | 104,7 | 16,1 | 8,7 | 59,9 | - | 84,7 | |
| ARR In - Support & Maint. | 87,6 | 62,3 | 74,5 | 3,5 | 227,9 | 84,3 | 60,1 | 71,1 | 3,7 | 219,2 | |
| ARR In - FX | - | 1,5 | 5,1 | - | 6,6 | - | 4,7 | 11,8 | - | 16,5 | |
| ARR In* | 106,6 | 75,6 | 153,5 | 3,5 | 339,2 | 100,4 | 73,5 | 142,8 | 3,7 | 320,4 | |
| ACV - SaaS | 0,0 | 0,5 | 6,5 | - | 7,0 | 2,9 | 3,2 | 17,6 | - | 23,7 | |
| ACV - Support & Maintenance | -0,3 | 0,3 | -0,6 | -0,2 | -0,8 | 3,1 | -0,3 | -1,0 | -0,4 | 1,4 | |
| ACV - Net | -0,2 | 0,8 | 5,9 | -0,2 | 6,2 | 6,0 | 2,9 | 16,6 | -0,4 | 25,0 | |
| ARR Out - SaaS | 19,0 | 12,5 | 82,5 | - | 114,0 | 19,0 | 12,5 | 82,5 | - | 114,0 | |
| ARR Out - Support & Maint. | 87,3 | 63,9 | 76,9 | 3,3 | 231,4 | 87,3 | 63,9 | 76,9 | 3,3 | 231,4 | |
| ARR Out | 106,3 | 76,4 | 159,4 | 3,3 | 345,4 | 106,3 | 76,4 | 159,4 | 3,3 | 345,4 |
| jul-sep 2021 | jan-sep 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | |||||||
| (Mkr) | Public | Public | Private | Other Koncern | Public | Public | Private | Other Koncern | ||
| 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 | 0,9 | - | 1,2 | - | 0,9 | 3,5 | - | 4,4 |
| ARR In | 96,7 | 61,9 | 118,4 | 3,8 | 280,9 | 95,0 | 58,4 | 107,1 | 4,0 | 264,5 |
| ACV - SaaS | 0,6 | 2,2 | 5,6 | - | 8,5 | 1,2 | 3,2 | 17,6 | - | 21,9 |
| ACV - Support & Maintenance | -0,4 | 1,7 | 0,0 | -0,0 | 1,3 | 0,8 | 4,3 | -0,7 | -0,3 | 4,2 |
| ACV - Net | 0,3 | 3,9 | 5,6 | -0,0 | 9,8 | 2,0 | 7,5 | 16,9 | -0,3 | 26,1 |
| ARR Out - SaaS | 14,5 | 9,2 | 53,9 | - | 77,6 | 14,5 | 9,2 | 53,9 | - | 77,6 |
| ARR Out - Support & Maint. | 82,5 | 56,7 | 70,1 | 3,8 | 213,0 | 82,5 | 56,7 | 70,1 | 3,8 | 213,0 |
| ARR Out | 97,0 | 65,9 | 124,0 | 3,8 | 290,6 | 97,0 | 65,9 | 124,0 | 3,8 | 290,6 |
| 2018-01-01 | 2019-01-01 | 2020-01-01 | 2021-01-01 | 2022-01-01 | |
|---|---|---|---|---|---|
| 2018-12-31 | 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-09-30 | |
| Shares outstanding beginning of the period | 51 873 025 | 52 887 406 | 53 173 907 | 53 463 907 | 53 726 057 |
| Share issue from warrant programme | 314 576 | 286 501 | 290 000 | 262 150 | 252 800 |
| 0 | 0 | 0 | 0 | 238 968 | |
| Non-cash issue | 699 805 | 0 | 0 | 0 | 0 |
| Shares outstanding at the end of the period | 52 887 406 | 53 173 907 | 53 463 907 | 53 726 057 | 54 217 825 |
In order to strengthen Formpipe's competence and capacity to create enhanced cooperation with customers within the SE Public business area, a step towards our long-term strategy of becoming a 'one-stop-shop vendor' of digital government, Alkemit AB was acquired on January 1st. Alkemit AB is one of Formpipe's leading partners in the Swedish public sector and has in recent years successfully built a delivery organization around Formpipe's products and offers management, development projects and support. The acquisition pertained to 100% of the shares in Alkemit AB and has affected the Group's balance sheet and cash and cash equivalents as described below at the time of acquisition. Since the acquisition date, Alkemit AB has contributed SEK 14.7 million in sales and SEK 5.0 million in operating profit before depreciation and non-recurring acquisition-related costs (EBITDA).
Goodwill has been recognised at the time of the acquisition and consists of synergy effects and personnel. Adjustments to the carrying amount are represented by acquired surplus values regarding customer relations, technology and brand. In making this adjustment, the effect of deferred tax has also been taken into account. No portion of reported goodwill is anticipated to be income tax deductible.
The acquisition balance sheet is subject to final adjustments no later than one year after the transaction date.
| (SEK '000) | Fair value |
|---|---|
| Tangible assets | 191 |
| Intangible assets | 3 444 |
| Finansiella tillgångar | 30 |
| Trade and other receivables | 4 034 |
| Cash and cash equivalents | 7 625 |
| Trade payables and other liabilities | -5 877 |
| Deferred tax | -709 |
| Acquired net assets | 8 736 |
| Goodwill | 29 141 |
| Total purchase price | 37 877 |
| - Likvid med emitterade egna aktier | -10 082 |
| - Existing cash in the acquired business | -7 625 |
| Changes to group cash at acquisition | 20 170 |
Financial Tables
| Jan-Sep | ||
|---|---|---|
| 2022 | 2021 | |
| Employees at end of period | 284 | 276 |
| Net sales, SEK 000 | 357 321 | 350 943 |
| EBITDA, SEK 000 | 52 340 | 107 041 |
| EBIT, SEK 000 | 10 006 | 52 490 |
| Net profit for the period, SEK 000 | 3 649 | 39 345 |
| EBITDA margin, % | 14,6% | 30,5% |
| EBIT margin, % | 2,8% | 15,0% |
| Profit margin, % | 1,0% | 11,2% |
| Return on equity, %* | 3,3% | 12,5% |
| Return on working capital, %* | 5,5% | 14,8% |
| Equity ratio, % | 66% | 63% |
| Equity per outstanding share at the end of the period, SEK | 7,95 | 7,73 |
| Earnings per share - before dilution, SEK | 0,07 | 0,73 |
| Earnings per share - after dilution, SEK | 0,07 | 0,73 |
| Share price at the end of the period, SEK | 25,05 | 30,50 |
| * Ratios including P&L measures are based on the most recent 12-month period |
| Jul-Sep | Jan-Sep | |||||
|---|---|---|---|---|---|---|
| (SEK 000) | 2022 | 2021 | 2022 | 2021 | ||
| Net sales | 30 971 | 28 961 | 97 557 | 92 706 | ||
| Operating expenses | ||||||
| Sales expenses | -3 695 | -3 809 | -9 491 | -6 759 | ||
| Other costs | -14 941 | -11 607 | -44 949 | -35 347 | ||
| Personnel costs | -18 773 | -17 556 | -64 476 | -60 572 | ||
| Depreciation/amortization | -994 | -805 | -2 713 | -2 136 | ||
| Total operating expenses | -38 402 | -33 776 | -121 630 | -104 814 | ||
| Operating profit/loss | -7 431 | -4 815 | -24 073 | -12 108 | ||
| Result from participations in group companies | - | - | - | - | ||
| Other financial items | -5 525 | -1 192 | -10 063 | -1 765 | ||
| Appropriations | - | - | 466 | - | ||
| Net profit for the period | -12 956 | -6 007 | -33 670 | -13 873 | ||
| 30 Sep | 31 Dec |
| 30 Sep | ||||
|---|---|---|---|---|
| (SEK 000) | 2022 | 2021 | 2021 | |
| Intangible assets | 8 862 | 9 072 | 9 301 | |
| Tangible assets | 2 030 | 1 090 | 1 174 | |
| Financial assets | 385 709 | 348 606 | 348 708 | |
| Deferred tax asset | 2 249 | - | 2 249 | |
| Current assets (excl. cash equivalents) | 78 779 | 58 866 | 161 089 | |
| Cash and bank balances | - | - | 15 898 | |
| TOTAL ASSETS | 477 629 | 417 635 | 538 419 | |
| Restricted equity | 23 112 | 23 063 | 23 063 | |
| Non-restricted equity | 170 364 | 120 096 | 227 130 | |
| Total equity | 193 477 | 143 159 | 250 193 | |
| Long-term liabilities | 25 000 | - | - | |
| Current liabilities | 259 153 | 274 477 | 288 226 | |
| TOTAL EQUITY AND LIABILITIES | 477 629 | 417 635 | 538 419 |
Pledged assets referred to shares in subsidiaries as security for loans. The pledged assets in the Group were the same as disclosed for the Parent Company.
| 30 Sep | 31 Dec | |
|---|---|---|
| (SEK 000) | 2022 | 2021 |
| Pledged assets | - | - |
| Contingent liabilities | - | - |
Definitions
Formpipe uses alternative key figures, also called APM (Alternative Performance Measures). Formpipe's APM's are calculated from the financial reports, which are prepared in accordance with applicable rules for financial reporting, where prepared figures are altered by adding or subtracting amounts from the presented numbers. Below the alternative performance measures, that Formpipe uses in published reports, are defined and described
Software revenue
The total of license revenue and revenue from support and maintenance contracts.
Recurring revenue
Revenue of an annually recurring nature such as support and maintenance revenue and revenue from SAAS services regarding license agreements.
Annual recurring revenue (ARR)
Recurring revenue for the period's last month multiplied by 12, to obtain the recurring revenue for the coming 12 months from contracts with recognized revenue.
ARR IN
Initial value for the period's Annual recurring revenue.
Annual Contract Value (ACV)
Annual recurring revenue of the period's won (ACV +) and lost (ACV -) contracts (net).
ARR OUT
Closing value of the period's Annual recurring revenue, provided that all new/lost contracts (ACV) of the period have begun/ceased to be recognized.
FX effect
Revaluation of ARR IN to the closing balance exchange rates.
Fixed operating expenses
Other costs and personnel costs.
Operating expenses
Sales costs, other costs, personnel costs, capitalized development and depreciation.
EBITDA
Earnings before depreciation, amortization, acquisitionrelated costs and other items affecting comparability.
EBITDA-adj.
EBITDA exclusive capitalized work for own account.
Items affecting comparability
The item must be of a material nature to be reported separately and considered undesirable from the regular core operations and complicate the comparison. For example, acquisition-related items, restructuring-related items and write-downs.
EBIT
Operating profit/loss.
Operating margin before depreciation and amortization (EBITDA margin)
Earnings before depreciation, amortization, acquisitionrelated costs and other items affecting comparability as a percentage of net sales.
Operating margin before depreciation and amortization (EBITDA-adj margin)
Earnings before capitalized work for own account, depreciation, amortization, acquisition-related costs and other items affecting comparability as a percentage of net sales.
Operating margin (EBIT margin)
Operating profit/loss as a percentage of net sales.
Profit margin
Net profit/loss after tax as a percentage of sales at the end of the period.
Earnings per share - before dilution
Net profit/loss after tax divided by the average number of shares during the period.
Earnings per share - after dilution
Net proft/loss after tax adjusted for dilution effects divided by the average number of shares after dilution during the period.
Equity per share
Equity at the end of the period divided by the number of shares at the end of the period.
Return on equity
Profit/loss after tax as a percentage of average equity.
Return on working capital
Operating profit/loss as a percentage of average working capital (balance sheet total less non-interest bearing liabilities and cash and bank balances).
Free cash flow
Cash flow from operating activities minus cash flow from investing activities excluding acquisitions.
Net interest-bearing debt
Interest bearing debts minus cash and cash equivalents.
Equity ratio
Equity as a percentage of the balance sheet total.
Ordering financial information
Financial information and other related corporate information is published on www.formpipe.se Information may also be ordered from: Formpipe, Box 23131, SE-104 35 Stockholm and on [email protected]
Contact person for investor relations CFO Joakim Alfredson [email protected]