Basware Corporation, stock exchange release, April 30, 2019 at 8.45 am EEST
January-March 2019: Cloud revenues increased 14 percent, cloud now 68 percent of
total revenue
· Net sales EUR 35,895 thousand (EUR 35,969 thousand): decrease of -0.2
percent, organic growth at constant currencies 5.7 percent
· Organic cloud revenue growth at constant currencies 14.4 percent, amounting
to 67.6 percent (59.3%) of net sales
· Cloud ARR order intake amounted to EUR 4.9 million (EUR 4.7 million)
· Adjusted EBITDA EUR -1,699 thousand (EUR 12 thousand)
· Adjusted operating profit/loss EUR -5,820 thousand (EUR -2,618 thousand)
· Operating profit/loss EUR -7,780 thousand (EUR 12,495 thousand)
· Adjusted earnings per share (diluted) amounted to EUR -0.43 (-0.61) and
earnings per share (diluted) were EUR -0.57 (0.45)
Key figures
EUR thousand 1-3/2019 1-3/2018 Change, % 2018
Net sales 35,895 35,969 -0.2% 141,417
Cloud revenue 24,282 21,343 13.8% 89,482
Cloud ARR order intake 4,937 4,657 6.0% 21,474
EBITDA -3,660 15,125 9,217
Adjusted EBITDA -1,699 12 -4,364
Operating profit/loss -7,780 12,495 -1,471
Adjusted operating profit/loss -5,820 -2,618 122.3% -15,052
Gearing, % 33.4% -4.9% 14.9%
Cash and cash equivalents 35,117 54,183 -35.2% 40,747
Earnings per share, diluted, EUR -0.57 0.45 -0.49
Adjusted earnings per share,diluted, EUR -0.43 -0.61 -28.7% -1.44
Personnel at the end of the period 1,386 1,768 -21.6% 1,412
Notes on comparability
Basware has adopted IFRS 16 ‘Leases’ as of January 1, 2019 with modified
retrospective method of application, and accordingly the comparative information
has not been restated. IFRS 16 impacts comparability for the following financial
information:
· Depreciation expenses have increased significantly and correspondingly rent
expenses decreased significantly. Depreciation expenses for right-of-use-assets
in the first quarter of 2019 totalled EUR 1,251 thousand. The aforementioned
improves reported EBITDA compared to 2018.
· Balance sheet totals on January 1, 2019 have increased by EUR 17,012
thousand due to recognition of right-of-use-assets and lease liabilities.
· Principal payments of lease liabilities are separately presented in the cash
flow from financing activities and totalled EUR 953 thousand during the first
quarter of 2019.
· Interest expenses recognized from lease liabilities totalled EUR 219
thousand in the first quarter of 2019.
· Notes information in 2019 for commitments and contingent liabilities does
not include lease liabilities that are recognized as lease liabilities on the
balance sheet.
· IFRS 16 impacts comparability for key figures that are calculated based on
balance sheet totals or interest-bearing liabilities.
In February 2018 Basware completed the divestment of two businesses. As a
result, it is important to consider the organic growth rate when comparing 2019
financials with 2018 financials as the divestments decrease revenues and
profitability.
The interim report is unaudited.
Guidance for 2019
Basware’s key strategic priority for the strategy period 2018-2022 is scalable
cloud revenue growth. The company continues to strengthen its leading market
position in order to grow scalable cloud revenue.
For 2019, Basware expects the following on an organic basis at constant
currencies:
· Cloud revenues to grow at approximately 15 percent
· Total revenues to grow at approximately 5 percent
· Adjusted EBITDA to be at breakeven or better
Interim CEO Klaus Andersen:
“In the first quarter of 2019, Basware continued to achieve record high
quarterly cloud revenues. Cloud revenues increased 14 percent, which was an
acceleration from the last quarter of 2018. During the quarter Basware signed
important new deals with FirstGroup America, Sony Music Entertainment and Innio,
amongst others. We also continued to sign add-on sales with existing clients
such as Fresenius, Vinci and Marienhaus.
Cloud order intake amounted to EUR 4.9 million and we made good progress in
orders received from new customers during the quarter. Although customer
activity continued on a high level in the US and France, in other markets the
speculation of a possible tender offer had a negative effect on the timing of
some deals closing in the quarter. In the first two weeks of April, we closed
deals with three new customers.
Adjusted EBITDA amounted to EUR -1.7 million, impacted partly by temporarily
higher hosting costs related to the migration of major products to AWS.
Basware’s cloud revenue has reached 68 percent of total and Basware is ready to
move towards the next phase in the cloud transformation. Focus will now change
towards a balance between cloud growth and profitability. We will initiate a
productivity program, which aims to improve our profitability by focusing on a
number of areas including making professional services profitable, streamlining
the product portfolio, R&D and production operations as well as corporate
support functions. Basware expects annual run-rate savings of EUR 10 million and
to reach positive EBIT in 2020 and positive free cash flow on a run-rate basis
by the end of 2020.”
Results briefing webcast and conference call
Basware arranges a briefing for analysts and press, where interim CEO Klaus
Andersen and CFO Niclas Rosenlew will comment on the events and financial
performance of the past quarter. The results briefing can be followed via live
webcast or teleconference. A recording of the briefing will be available after
the event.
Time: Tuesday, April 30, 2019 at 11 am EEST / 9 am BST
Video webcast and teleconference registration: https://basware.videosync.fi/2019
-q1-interim-report
Teleconference numbers:
Finland: +358 9 8171 0310
Sweden: +46 8 5664 2651
UK: +44 333 300 0804
US: +1 631 913 14 22
PIN: 54464215#
For further information, please contact:
Ben Selby, VP IR & Treasury, Basware Corporation
Tel. +358 50 305 8077, ben.selby@basware.com
Distribution:
Nasdaq Helsinki
Main media
investors.basware.com/en
About Basware:
Basware (http://www.basware.com/) (Nasdaq: BAS1V) is the global leader in
providing networked source-to-pay solutions, e-invoicing and value-added
services. Basware’s commerce and financing network connects businesses in over
100 countries and territories around the globe. As the largest open business
network in the world, Basware provides scale and reach for organizations of all
sizes, enabling them to grow their business and unlock value across their
operations by simplifying and streamlining financial processes. Small and large
companies around the world achieve significant cost savings, more flexible
payment terms, greater efficiencies and closer relationships with their
suppliers. Find out more at https://investors.basware.com/en.
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