Basware Financial Statement Bulletin January-December 2020: Consistent business performance, profitability and revenue in line with guidance
October-December 2020
- Cloud ARR order intake amounted to EUR 5.9 million (EUR 6.9 million)
- Net sales decreased 1.2 percent to EUR 38,793 thousand (EUR 39,264 thousand), which amounted to 0.8 percent organic growth at constant currencies
- Cloud revenue increased 4.6 percent to EUR 28,660 thousand (EUR 27,390 thousand), which amounted to 6.9 percent organic growth at constant currencies
- EBIT amounted to EUR 1,213 thousand (EUR -1,516 thousand)
- Earnings per share (diluted) were EUR -0.13 (EUR -0.28)
January-December 2020
- Cloud ARR order intake amounted to EUR 19.3 million (EUR 23.7 million)
- Net sales increased 2.2 percent to EUR 151,579 thousand (EUR 148,302 thousand), which amounted to 3.2 percent organic growth at constant currencies
- Cloud revenue increased 8.7 percent to EUR 110,312 thousand (EUR 101,442 thousand), which amounted to 9.8 percent organic growth at constant currencies
- EBIT amounted to EUR 4,667 thousand (EUR -14,537 thousand)
- Earnings per share (diluted) were EUR -0.51 (EUR -1.63)
Key figures
| EUR thousand | 10-12/ 2020 |
10-12/ 2019 |
Change, % | 1-12/ 2020 |
1-12/ 2019 |
Change, % |
| Net sales | 38,793 | 39,264 | -1.2 | 151,579 | 148,302 | 2.2 |
| Cloud revenue | 28,660 | 27,390 | 4.6 | 110,312 | 101,442 | 8.7 |
| Cloud ARR order intake | 5,899 | 6,873 | -14.2 | 19,250 | 23,694 | -18.8 |
| EBIT | 1,213 | -1,516 | 4,667 | -14,537 | ||
| EBITDA | 5,044 | 2,395 | 20,207 | 1,403 | ||
| Gearing, %1 | 53.0 | 48.9 | 8.4 | 53.0 | 48.9 | 8.4 |
| Cash and cash equivalents1 | 40,461 | 31,672 | 27.8 | 40,461 | 31,672 | 27.8 |
| Cash flows from operating activities | 5,633 | 4,742 | 18.8 | 25,252 | 4,159 | |
| Free cash flow metric | -1,503 | -4,774 | 68.5 | -6,590 | -23,829 | 72.3 |
| Earnings per share, diluted, EUR | -0.13 | -0.28 | 54.8 | -0.51 | -1.63 | 68.8 |
| Personnel1 | 1,336 | 1,325 | 0.8 | 1,336 | 1,325 | 0.8 |
1 At the end of the period.
The financial statement bulletin is unaudited.
Guidance for 2021
Basware expects uncertainty in the demand environment to continue in the first half of 2021 and guides the following for the full year 2021:
- Modest positive Net sales growth on an organic constant currency basis
- EBIT approximately at the same level or better than the previous year
CEO Klaus Andersen:
“Order intake increased from the third quarter, but due to the economic uncertainty caused by the pandemic, we continued to see some cautiousness from especially new enterprise customers in starting large IT projects. Order intake amounted to EUR 5.9 million in the fourth quarter and EUR 19.3 million for the full year. Among others Ingersoll Rand, US-based industrial equipment manufacturer, joined our customer base and we signed a significant customer expansion deal from a global industrial company. In the quarter we have started to gradually reinstate our investments in marketing towards more normal levels.
Strong performance in profitability and operating cash flow continued during the last quarter of 2020. EBIT amounted to EUR 1.2 million for the quarter and EUR 4.7 million for the year, which is EUR 19.2 million improvement compared to year 2019. Operating cash flow amounted to EUR 5.6 million for the quarter. Net sales increased 3 percent on organic constant currency basis and amounted to EUR 152 million for the year.
Throughout the past year we have been executing our strategy to deliver sustainable growth and profitability. In addition, we have successfully improved scalability and productivity in our cloud business. When we win a new customer, they typically continue to use our solutions for a long period of time and expand their original contract with additional services or geographical expansions. In 2020 Basware's gross renewal rate was 94 percent and net renewal rate was 104 percent. Cloud gross margin was 68 percent at the end of 2020, which is three percentage points higher than at the end of 2019. Our customer lifetime value to customer acquisition cost ratio (LTV/CAC) was 5 times in 2020.
For 2021, in line with our strategy, Basware expects to continue to grow profitably. We anticipate the networked Purchase-to-Pay market to continue recovering from the economic uncertainty caused by the pandemic. There is a strong demand for especially networked AP automation solutions and Basware is well positioned to capture the market opportunity now as well as in the future.“
Results conference call
Basware arranges a briefing for analysts and press, where CEO Klaus Andersen and CFO Martti Nurminen will comment on the events and financial performance of the past quarter and full year. The results briefing can be followed via live webcast or teleconference. A recording of the briefing will be available shortly after the event.
Time: Thursday, February 4, 2021 at 2 pm EET / 12 am GMT
Place: Basware HQ, Linnoitustie 2, Cello-building, Espoo, Finland
Video webcast and teleconference registration: https://basware.videosync.fi/2020-q4-results
Teleconference numbers:
Finland: +358 981 710 310
Sweden: +46 856 642 651
United Kingdom: +44 333 300 0804
United States: +1 631 913 1422
PIN: 92179424#
To join in analysts and press briefing, please contact ir@basware.com.
Basware Corporation
Klaus Andersen
CEO
For more information, please contact:
Ben Selby, VP Investor Relations and 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 and e-invoicing 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.