Basware Corporation, stock exchange release, February 4, 2020 at 8:45 am
EET
October-December 2019:
· Net sales EUR 39,264 thousand (EUR 36,488
thousand): increase of 7.6
percent, organic growth at constant currencies 7.3
percent
· Organic cloud revenue growth at constant currencies 13.9 percent,
amounting
to 69.8 percent (65.5%) of net sales
· Cloud ARR order intake
amounted to EUR 6.9 million (EUR 5.9 million)
· Adjusted EBITDA EUR 2,480
thousand (EUR -826 thousand)
· Adjusted operating profit/loss EUR -1,430
thousand (EUR -3,419 thousand)
· Operating profit/loss EUR -1,516 thousand
(EUR -3,850 thousand)
· Adjusted earnings per share (diluted) amounted to EUR
-0.27 (EUR -0.28) and
earnings per share (diluted) were EUR -0.28 (EUR
-0.31)
January-December 2019:
· Net sales EUR 148,302 thousand (EUR 141,417
thousand): increase of 4.9
percent, organic growth at constant currencies 5.9
percent
· Organic cloud revenue growth at constant currencies 12.9 percent,
amounting
to 68.4 percent (63.3%) of net sales
· Cloud ARR order intake
amounted to EUR 23.7 million (EUR 21.5 million)
· Adjusted EBITDA 5,185
thousand (EUR -4,364 thousand)
· Adjusted operating profit/loss EUR -10,756
thousand (EUR -15,052 thousand)
· Operating profit/loss EUR -14,537 thousand
(EUR -1,471 thousand)
· Adjusted earnings per share (diluted) amounted to EUR
-1.37 (EUR -1.44) and
earnings per share (diluted) were EUR -1.63 (EUR
-0.49)
Key figures
[][][]
EUR thousand 10-12/ 10-12/ Change, %
1-12/ 1-12/ Change, %
2019 2018
2019 2018
Net sales 39,264 36,488 7.6 148,302 141,417
4.9
Cloud revenue 27,390 23,916 14.5 101,442 89,482
13.4
Cloud ARR order 6,873 5,942 15.7 23,694 21,474
10.3
intake
EBITDA 2,395 -1,257 1,403 9,217
-84.8
Adjusted EBITDA 2,480 -826 5,185
-4,364
Operating -1,516 -3,850 60.6 -14,537
-1,471
profit/loss
Adjusted operating -1,430 -3,419 58.2 -10,756
-15,052 28.5
profit/loss
Gearing, %[1] 48.9 14.9
48.9 14.9
Cash and cash 31,672 40,747 -22.3 31,672
40,747 -22.3
equivalents[1]
Free cash flow -4,774 -4,076 -17.1
-23,829 -19,829 -20.2
metric
Earnings per share, -0.28 -0.31
-10.7 -1.63 -0.49
diluted, EUR
Adjusted earnings -0.27 -0.28
-3.4 -1.37 -1.44 -5.0
per share, diluted,
EUR
Personnel[1]
1,325 1,412 -6.2 1,325 1,412 -6.2
[1 ]At the end of the
period.
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
fourth quarter of 2019 totalled EUR 1,155 thousand and EUR 4,704
thousand
year-to-date. 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 1,246
thousand in the fourth
quarter of 2019. Year-to-date the payments of lease
liabilities totalled EUR
4,372 thousand.
· Interest expenses recognized from
lease liabilities totalled EUR 223
thousand in the fourth quarter of 2019 and
EUR 888 thousand year-to-date.
· 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 2020
For 2020, Basware expects the following:
·
Net Sales to grow at around the same rate as in 2019 on an organic basis
at
constant currencies
· Positive EBIT
Constant currencies mean that the
effects of any changes in currencies are
eliminated by calculating the figures
for the period using 2019 exchange rates.
Organic means that the figures are
adjusted to remove the effects of any
acquisitions or disposals within the past
12 months.
CEO Klaus Andersen:
"The productivity programme actions
implemented throughout the year improved
Basware's profitability in 2019.
Adjusted EBITDA amounted to EUR 5.2 million for
the full year and EUR 2.5
million for the quarter. Total revenue in 2019 was EUR
148 million, of which
cloud amounted to EUR 101 million. Cloud revenue growth
was 13 percent and
total revenue growth was 6 percent both on an organic basis
at constant
currencies. Revenue growth was in line with our expectations and
profitability
slightly better than guidance.
In the last quarter of the year, Basware signed
deals with new customers such as
Tillman Infrastructure Inc and Millennium
Physician Group, both based in the US.
Order intake for the quarter amounted to
EUR 6.9 million.
For the fifth time in a row Forrester, an independent
industry analyst, named
Basware as a Leader in eProcurement, with the top
scores in the product
strategy, globalization and invoice processing criteria.
We were recognized for
our innovations in accounts payable automation and
procurement, particularly in
leveraging Artificial Intelligence. As industry
leader we are also pleased that
Basware solutions are now featured on the SAP
App Center.
Basware’s open API architecture approach has been well received by
customers and
key stakeholders alike. During the quarter we announced the first
application
partnership with SirionLabs, which is the best in class vendor for
Contract
Lifecycle Management. We look forward to cooperating with selected
specialist
vendors to cover key functionalities of the Source-to-Pay cycle with
seamless
integration to Basware solutions.”
Results briefing webcast and
conference call
Basware arranges a briefing for analysts and press, where CEO
Klaus Andersen and
CFO Martti Nurminen 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, February 4, 2020 at 11 am EET / 9 am
GMT
Place: Basware HQ, Linnoitustie 2, Cello -building, Espoo, Finland
Video
webcast and teleconference
registration: https://basware.videosync.fi/2019
-financial-statements/
Teleconf
erence
numbers:
Finland: +358 981 710 310
Sweden: +46 856 642 651
UK: +44 333 300
0804
US: +1 631 913 1422
PIN: 66013980#
BASWARE CORPORATION
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 offers the
largest open business network in the world and is the global
leader in
providing networked purchase-to-pay solutions, e-invoicing and
innovative
financing services. Our technology empowers organisations with 100%
spend
visibility by enabling the capture of all financial data across
procurement,
finance, accounts payable and accounts receivable functions.
Basware is a
global company doing business in more than 100 countries and is
traded on the
Helsinki exchange (BAS1V: HE). Find out
more
at https://investors.basware.com/en.