2019 Year-End Report and Interim Report October – December 2019

The complete report is available on the Company’s website info.bimobject.com.
 

Fourth quarter 2019

• Invoiced sales amounted to SEK 60 (59) million. Web Services (ARR) saw healthy growth of 31% in the quarter.
• The distribution between projects and web services (subscriptions) was 29/71 (42/58) percent.
• High proportion of sales were invoiced late in the quarter which impacted net sales negatively as revenue recognition will occur in 2020. The Group’s net sales decreased by 20 percent to SEK 31 (39) million.
• The Group’s operating loss amounted to SEK -43 (-34) million including SEK 8 million in non-recurring costs, due to bad debts and restructuring.
• Basic earnings per share amounted to SEK -0.36 (-0.28).
• Group cash flow from operating activities was SEK -30 (-22) million.
• The accumulated number of users in thousands increased by 70 percent to approximately 1,785** (1,052).
• The accumulated number of downloads amounted to 49.1 million**.
• The number of manufacturers (Brands) was 1,656**.
• Carl Silbersky appointed new CEO.
• Christophe Carvenius appointed SVP Head of Growth, David Kullander appointed Chief Marketing Officer and Åsa Gylling Hallén appointed Vice President Development.
• Johannes Reischböck stepped down as COO and resumed former role as MD Germany
• Mario Ortega stepped down as SVP AECO and resumed former role as MD Spain.

Full-Year 2019

• Invoiced sales increased by 14 percent to SEK 153 (133) million.
• Net sales for the full year increased by 17 percent to SEK 134 million (114).
• Johan Svanström was elected to the Board.
• The Board proposes that no dividend be paid.

Significant events after the end of the period

• Joint venture formed in Thailand with the country’s largest industrial conglomerate SCG/CPAC.
   

** Including calculated net addition from Polantis and Convergo.

CEO’s comments

2019 – a year of both turbulence and growth
Within just twelve months, BIMobject has had three CEOs and two CFOs. We are putting a turbulent year behind us.

It is clear that the many changes impacted invoiced sales growth, which failed to live up to the communicated goal of 20 percent growth. We did however start to tackle cost and efficiency throughout the business.

When I became CEO in October, I made immediate changes to refocus the organization on growth by:

• Reshaping the management team, freeing our most senior sales leaders to focus on their home markets.
• Focusing our go-to-market and product strategies on our web services (ARR) offering.
• Trimming our R&D and content production teams to increase efficiency.

Still, it speaks to the strength of the business platform BIMobject has built over nine years that, even this year, our growth continued. End users, brands, BIM objects and downloads on our platform have all grown as well, surpassing our goals for the year. We remain the world leading platform for BIM objects. The drivers of our business - legislation, digitalization and sustainability - are as strong as ever.

Web services (ARR) increased 31 percent
In the fourth quarter, invoiced sales grew by 2 percent. A high proportion of Q4 sales were invoiced late in December which impacted net sales negatively as revenue recognition will occur in 2020. This has a negative effect on net sales during the fourth quarter, which was down by 20 percent.

Web services continued to show growth in invoiced sales during the fourth quarter, and were up 31 percent in 2019. Worth repeating, this represents a SEK 24 million growth in our annual recurring revenue base which remains our key strategic priority. We are entering 2020 with SEK 100 million of recurring web services revenue (ARR), growing 31 percent year-over-year.

Project invoiced sales, on the other hand, faced continued competition and were down 10 percent year-over-year, from SEK 58 million to SEK 52 million. Our transition to recurring revenue continues, and web services represented 71 percent of invoiced sales in the quarter and 66 percent for the full year.

Focus on web services growth
The Nordics show continued momentum, and invoiced sales grew by 15 percent with a positive inflow of new customers.

EMEA, the Nordics excluded, faced headwinds in the quarter and invoiced sales decreased primarily due to substantial weakness of project sales in Germany. To address the challenges in Germany, Johannes Reischböck stepped down as COO to focus solely on accelerating sales in the German speaking markets from our Munich office.

In North America, we continue to regain momentum and invoiced sales grew for the second consecutive quarter. The content development market is still marked by strong competition, but with renewed focus on web services sales we had positive inflow of new building product manufacturers. During the quarter we have also bolstered our North American sales force by recruiting seven top industry professionals, setting up for strong revenue growth in 2020. For the full year, US invoiced sales were down 2 percent.

In Asia, we are continuing to leverage partnerships to build a strong local presence. In January, BIMobject announced a strategic partnership with CPAC, a subsidiary of SCG, Thailand’s largest manufacturer of building materials and one of the largest companies in the country. The partnership is formed as a joint venture (JV), which will be responsible for the leveraging of BIMobject technologies and to support BIM advancements for Thai building product manufacturers. In addition to the access to South-East Asia, the JV also provides BIMobject with at least USD 500,000 in annual licensing revenues during the first five years.

Cost control
Our cost control efforts paid off in the quarter and operating cost remained stable versus Q4 last year. For the year, cost increased as we acquired companies. In addition, the result was impacted by non-recurring costs related to bad debt accruals and restructuring, including the closing of our Dubai subsidiary. In total, these non-recurring costs amounted to SEK 8 million.

Quarter on quarter the number of full time employees are down 17 employees. Now, keeping the head count stable and reallocating hiring to sales, marketing and web services R&D, we have an organization ready to scale up the business while maintaining the present cost level.

Strategy and goals for 2020

• Focus on web services (ARR) with a goal of at least 40 percent growth in the full year
• Significantly increase the number of manufacturers with a goal of at least 500 new manufacturers (BPMs)
• Continued strong increase in the number of registered users

We intend to launch a new pricing model in Q2 as well simplifying the process for new customers to get onboard the BIMobject platform. From a product development perspective, we are also stepping up investment in BIManalytics to visualize how much value and user reach our platform brings to our customers’ marketing organizations.

We are still early in the quarter and we are seeing early signs of regained sales momentum coupled with improved cash flow.

Carl Silbersky

CEO

For more information, please contact:
Carl Silbersky – CEO
Tel. +46 40 - 685 29 00
E-mail: ir@bimobject.com
__________________________________________________________________________

This information is information that BIMobject AB (publ) is obliged to publish in accordance the EU Market Abuse Regulation. The information was provided by Carl Silbersky for publication on 14 February 2020 at 08.00 CET.

About BIMobject

BIMobject is a leading global IT company at the forefront of digitalization of the construction industry. BIMobject offers cloud-based platforms, with over 1,600 manufacturers providing digital product information. Around the cloud-based platforms, which currently have over 1.7 million users, BIMobject offers a number of solutions aimed at manufacturers, property owners, architects/designers and construction companies and the trade sector. BIMobject, founded in 2011, operates in 20 countries and has over 200 employees. As of 31 December 2019, net sales RTM was SEK 134 million. BIMobject's shares are traded on Nasdaq First North under the ticker: BIM. Certified Advisor: FNCA Sweden AB, info@fnca.se, +46-8-528 00 399. www.bimobject.com