INTERIM REPORT/media/Files/B/Basware-IR...Head of Strategy/Operations, Nokia MeeGo Computers,...
Transcript of INTERIM REPORT/media/Files/B/Basware-IR...Head of Strategy/Operations, Nokia MeeGo Computers,...
I N T E R I MR E P O R TJanuary – September 2020
Q 3 / 2 0 2 0
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I M P O R T A N T N O T I C E
The following information contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or future financial performance, including, but not limited to, expectations regarding market growth and development as well growth and profitability of Basware. In some cases, such forward-looking statements can be identified by terminology such as “expect”, “plan”, “anticipate”, “intend”, “believe”, “estimate”, “predict”, “potential”, or “continue”, or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the forward-looking statements, possibly to a material degree. All forward-looking statements included herein are based on information presently available to Basware and, accordingly, Basware assumes no obligation to update any forward-looking statements, unless obligated to do so pursuant to an applicable law or regulation.
Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or thesolicitation of an offer to buy any securities of Basware or otherwise to engage in any investment activity.
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K E Y T A K E A W A Y S
Operating cash flow significantly improved
Solid net sales and EBIT performance
Order intake in line with expectations
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C U S T O M E R S U C C E S S I N Q 3 / 2 0
Geographies where Basware supports customers
29%40%
24%
7%
Cloud order intake EUR 3.6 million
% Cloud order intake by region
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O P E N E C O S Y S T E M P R O G R E S S
Basware launched a new developer portal for open APIs.
Developer.Basware.com
Procurement analytics company offering additional insights and analysis into our customers spend.
Global source-to-pay consulting and implementation expert joins Basware’s advisory partner network.
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S T R E N G T H E N I N G T H E E X E C U T I V E T E A M
Mogens PedersenChief Technology Officer
Perttu NihtiChief Product Officer
Key professional experience
SimCorp:Head of Cloud Centre of Excellence, 2018–2020Head of Technology and Architecture, 2012–2018Head of System Environment, 2007–2012Head of Product Support, 2004–2007Head of Fund Accounting, 2001–2004
Key professional experience
Basware:SVP, Head of Products, 2019–2020VP, Product Management, 2014–2019VP, Strategy, 2012–2014
Manager, August Associates, 2011–2012Head of Strategy/Operations, Nokia MeeGoComputers, 2009–2011
MSc in Engineering MSc in Engineering
F I N A N C I A L R E V I E W
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F I N A N C I A L P E R F O R M A N C E O V E R V I E W
Order intake in line with expectations
Solid revenue performance
Sequential improvements in profitability
Strong operating cash flow performance
€36.8MNet sales
€2.1MOperating profit
€38.4MCash and cash equivalents
€3.6MOrder intake
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C L O U D O R D E R I N T A K E
EUR
mill
ion
Annual recurring revenue gross order intake is calculated by summing the total order intake in the period expressed as an annual contract value.
▪ Performance in line with our expectations for Q3/20 driven by expansion and transformation sales
▪ Comparison period impacted by a large North American deal
▪ New customer acquisition continues to be impacted by Covid-19 situation
4.7 6.4 4.5 5.9 4.9 6.4 5.5 6.9 3.6 6.1 3.60.0
2.0
4.0
6.0
8.0
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N E T S A L E S▪ SaaS growth resilient despite headwind
from churn
▪ Transaction services growth impacted by change in transaction volume mix
▪ Consulting revenue growth impacted by lower available capacity of consulting days
▪ Maintenance decline in line with expectations, also expected to continue throughout the year
EUR thousand 7-9/
20207-9/2019
Change, % Change, %1
SaaS 14,447 12,139 19.0 21.3
Transaction services 11,654 11,825 -1.4 -0.5
Other cloud revenue 935 1,053 -11.2 -10.8
Cloud Revenue total 27,037 25,018 8.1 9.7
Maintenance 3,601 4,869 -26.1 -25.4
License sales 73 364 -79.9 -79.5
Consulting services 6,180 6,491 -4.8 -3.7
Other non-cloud revenue -119 80
Non-Cloud Revenue total 9,735 11,805 -17.5 -16.6
Total 36,772 36,823 -0.1 1.2
1On an organic basis at constant currencies
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EUR thousand 7-9/
20207-9/2019
Change, %
Net sales 36,772 36,823 -0.1
Cost of sales -15,405 -16,550 -6.9
Gross profit 21,368 20,273 5.4
S&M -8,885 -9,809 -9.4
R&D -6,546 -5,906 10.8
G&A -3,702 -3,576 3.5
Total operating expenses -19,133 -19,292 -0.8
Other operating income and expenses
-165 -42
Operating profit (EBIT) 2,069 940
Adjustments 28 -211
Depreciation and amortization 3,867 3,973 -2.7
Adjusted EBITDA 5,963 4,702 26.8
P R O F I T A B I L I T Y▪ Improvements in profitability driven by
systematic strategy execution and the Covid-19 related cost actions initiated in March 2020
▪ Gross margin performance- Gross margin 58%, +3Pts YoY (+2Pts QtQ)- Cloud gross margin 68%, +4Pts YoY
▪ S&M spend decreased due to Covid-19 and 2019 productivity programme
▪ R&D costs increased due to higher amortizations of completed projects
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EUR thousand 7-9/
20207-9/2019
Cash flows from operating activities 7,525 1,474
Net change in cash and cash equivalents 3,742 -32,763
Cash and cash equivalents 38,427 30,640
Gross financial debt 66,311 58,556
Net financial debt 27,884 27,916
C A S H F L O W A N D B A L A N C E S H E E T▪ Improvement in operating cash flows
▪ Increase of EUR 6 million YoY
▪ Driven by higher profitability and
▪ EUR 1.3 million net negative impact from governmental Covid-19 related payment deferral options repaid in Q3/20
▪ Heightened efforts on receivables collection
▪ Remaining EUR 3.2 million payment deferrals mostly repayable in the fourth quarter
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O U T L O O K
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O U T L O O K F O R 2 0 2 0 U P D A T E D
Net Sales to grow around 3 percent on an organic constant currency basis
EBIT to be between EUR 3.5 and 4.5 million
For 2020, Basware expects:
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K E Y T A K E A W A Y S
Operating cash flow significantly improved
Solid net sales and EBIT performance
Order intake in line with expectations
Q & A
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A P P E N D I X
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F R E E C A S H F L O W M E T R I C
-7,816
-9,794
-1,445
-4,774
-3,579
-1,293 -214
EUR thousand 7-9/
20207-9/2019
EBITDA 5,936 4,913 Capitalizations -2,010 -2,072 Finance expenses -2,974 -2,933 Taxes, excl. deferred taxes -188 -152 Payment of lease liabilities -967 -1,093 Share based compensation, share part -11 -108 Free cash flow metric -214 -1,445