Basware Interim Report January-September 2020: Strong profitability and operating cash flow development, guidance updated
Basware Corporation, stock exchange release, October 21, 2020 at 8.45 am EEST
- Cloud ARR order intake amounted to EUR 3.6 million (EUR 5.5 million)
- Net sales decreased 0.1 percent to EUR 36,772 thousand (EUR 36,823 thousand), which amounted to 1.2 percent organic growth at constant currencies
- Cloud revenue increased 8.1 percent to EUR 27,037 thousand (EUR 25,018 thousand), which amounted to 9.7 percent organic growth at constant currencies
- EBIT amounted to EUR 2,069 thousand (EUR 940 thousand)
- Earnings per share (diluted) were EUR -0.06 (EUR -0.13)
- Cloud ARR order intake amounted to EUR 13.3 million (EUR 16.8 million)
- Net sales increased 3.4 percent to EUR 112,787 thousand (EUR 109,038 thousand), which amounted to 4.1 percent organic growth at constant currencies
- Cloud revenue increased 10.3 percent to EUR 81,652 thousand (EUR 74,052 thousand), which amounted to 10.8 percent organic growth at constant currencies
- EBIT amounted to EUR 3,454 thousand (EUR -13,022 thousand)
- Earnings per share (diluted) were EUR -0.38 (EUR -1.35)
|Cloud ARR order intake||3,599||5,455||-34.0||13,348||16,821||-20.6||23,694|
|Cash and cash equivalents1||38,427||30,640||25.4||38,427||30,640||25.4||31,672|
|Cash flows from operating activities||7,525||1,474||19,619||-564||4,159|
|Free cash flow metric||-214||-1,445||85.2||-5,087||-19,055||73.3||-23,829|
|Earnings per share, diluted, EUR||-0.06||-0.13||55.3||-0.38||-1.35||71.7||-1.63|
1 At the end of the period.
The interim report is unaudited.
Guidance for 2020 updated
Basware updates full year guidance.
For 2020, Basware expects the following:
- Net Sales to grow around 3 percent on an organic constant currency basis
- EBIT to be between EUR 3.5 and 4.5 million
Previous guidance as given on April 21, 2020:
Due to the COVID-19 pandemic, the current economic outlook in Basware's main markets involve significant uncertainties. Basware assumes that global business activity will be negatively impacted in the second and third quarters, and in the fourth quarter business activity will gradually head towards more normal conditions. Net Sales guidance will be given when it is possible to estimate the COVID-19 pandemic effects more precisely.
Basware’s cost base is scalable and has variable cost components that can be reduced to a certain extent to maintain profitability. EBIT for 2020 is expected to be positive.
CEO Klaus Andersen:
“Basware’s revenue and profitability developed in line with our expectations during the third quarter of the year. EBIT amounted to EUR 2.1 million, which is approximately one million Euro improvement in comparison to third quarter of 2019. Our operating cash flow has developed well and amounted to EUR 7.5 million, c. EUR 6 million higher than in the third quarter of 2019.
Global companies from various industries such as Cision, AB Agri and Eastman Kodak Company chose Basware’s networked Purchase-to-Pay and e-invoicing services in the third quarter. Cloud order intake amounted to EUR 3.6 million. Similar to the second quarter of 2020 the order intake consisted of expansion sales, transformations and medium sized new customers, whereas in the third quarter of 2019 we signed a very significant new customer deal in North America.
In line with our strategy to provide an open platform that seamlessly integrates with best-of-breed specialist systems, we launched a new developer portal for our open APIs. In addition, we continued to expand our partner network on both the technology and advisory partner front with Sievo and ExceleratedS2P. Sievo, a procurement analytics company, offers our customers additional insights to and analysis of their spend. Our best-in-class open networked Purchase-to-Pay platform is a good match with ExcleratedS2P’s procurement and finance technology consulting and implementation experience.
I am pleased to note that our profitability development has proceeded well this year. We have updated our revenue and profitability guidance for full year 2020. Net sales are estimated to grow around 3 percent on an organic constant currency basis and EBIT is expected to be between EUR 3.5 and 4.5 million. Short-term uncertainties remain due to Covid-19 however we continue to gain more confidence in our full year performance and the long-term demand megatrends such as automation and digitalization remain very strong.“
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. The results briefing can be followed via live webcast or teleconference. A recording of the briefing will be available after the event.
Time: Wednesday, October 21 at 11 am EEST / 9 am BST
Place: Basware HQ, Linnoitustie 2, Cello -building, Espoo, Finland
Video webcast and teleconference registration: https://basware.videosync.fi/2020-q3-results
Finland: +358 981 710 310
Sweden: +46 856 642 651
UK: +44 333 300 0804
US: +1 631 913 1422
For more information, please contact:
Ben Selby, VP Investor Relations and Treasury, Basware Corporation
Tel. +358 50 305 8077, email@example.com
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