BIMobject: Interim Report April – June 2019
The complete report is available on the Company’s website info.bimobject.com.
Second quarter 2019
- Billing amounted to SEK 33 (33) million.
- The Group’s net sales increased by 33 percent to SEK 34 (26) million.
- The distribution between projects and web services (subscriptions) was 32/68 (40/60) percent.
- The Group’s operating profit/loss amounted to SEK -34 (-15) million.
- Basic earnings per share amounted to SEK -0.29 (-0.29).
- Cash flow from operating activities was SEK -29 (-18) million.
- The accumulated number of users in thousands increased by 82 percent to approximately 1,542** (845).
- The accumulated number of downloads amounted to 42.1 million**.
- The number of manufacturers (Brands) was 1,553**.
- Kim Mortensen took over as new CEO on 1 June.
- Johan Svanström was elected to the Board and appointed Vice Chairman. Johannes Reischböck and Hjalmar Winbladh declared themselves unavailable for re-election and left the Board at the Annual General Meeting.
- Alexander Dahlquist took over as CFO on 15 May. Mario Ortega and Johan Dyrssen joined executive management as SVP AECO and VP Product & Data, respectively.
- BIMobject entered into a partnership with AEC Daily, a world-leading developer of education courses.
Revised goals 2019
Billed sales are expected to grow by at least 20 percent in 2019, revised down from 30 percent. We expect to increase the acc. registered users to at least 1.7 million (up from 1.5 million). See CEO´s comments.
** Including calculated net addition from Polantis and Convergo.
Continued strong net sales, increase in billed web service
After a strong first quarter across the board, we had a bit more of a mixed picture during the second quarter. From a year on year perspective, Net sales saw a healthy increase of 33 percent and amounted to SEK 34 (26) million. The inflow of new users continued at a strong pace, and user activity on the platform remained high. On the other hand, billing, which fluctuate from quarter to quarter, came in flat and below our expectations. Billed web services showed healthy growth while billed project sales faced headwinds in some markets. North America was especially slow due to competitive pricing pressure. Competitors often offer lower quality content creation than us and for local market-only platforms. We are addressing this situation and we do see some positive progress where strategic partnerships with players such as AEC Daily contribute to leverage brand awareness.
The increase in billed web services led to a higher share of recurring sales. The change in mix between project sales and web services was expected since we continue to increase focus on SaaS-sales of web services vs the lower margin content production (project sales).
We strive for a high share of web services and a strong long-term relationship model with customers. We continue to develop product and service drivers for the SaaS model, including upgrades of our globally leading offerings such as BIManalytics Core and BIMscript.
In the future, we want to see more building product manufacturers (BPMs) not only leveraging our platform for hosting objects developed by us – but also objects created by our customers themselves or via external partners.
To emphasise this trend, we aim to form partnerships with independent content developers from all over the world so that they can produce objects and then publish them on BIMobject Cloud.
The first half year has been a period of organisational change and management transition. I am very enthusiastic about taking on the position as CEO and I look forward to working closely with my team in building and growing the future BIMobject. We have a great market position already, and a massive business opportunity ahead as well as true potential to contribute to a more efficient and sustainable development within the construction industry.
In the coming months, I plan to meet all co-workers and deepen my understanding of the business opportunities in the different regions. This will help my team and I to review the strategy and the long-term business plan. The strategy work has been initiated and I expect that we will be able to present an update of our strategy and goals at the latest early next year.
In the short perspective, operations will continue to focus on core business operations such as sales, users, and product development on the platform. Work is ongoing to build strong processes for automating and scaling the business, and also to leverage our large amounts of data. We are looking closely at our cost and operational efficiency, to ensure we maximize the BIMobject platform growth and value creation.
Long term ambitions
The digitalisation of the construction industry is still in an early phase. There are millions of users and many thousands of manufacturers around the world who can transition to a digital world with the use of BIMobject. This implies that we have a great “runway” from our current market position where we remain in a very strong and dominating global position and have very healthy and leading growth in global users. We also continue to have a positive and active view in terms of M&A opportunities.
This said, it is difficult to assess the pace of this transition. Economic signals and macro-environment show a mixed picture and we meet varied demand across our markets, where Brexit, US-China trade, EU economics on the one hand might impact negatively on investments, while on the other hand the construction industry needs to become more efficient and sustainable. The need for cheaper and more efficient processes really pushes digitalisation of the construction industry - a perfect position for BIMobject.
Revised goals 2019
Weaker Q2 performance and challenges in North America make growth target a stretch and revised goal will be at least 20 percent growth in 2019. We expect to increase the acc. registered users to at least 1.7 million, revised up from 1.5 million.
We continue to build the market leading cloud-based BIM content service in the world.
Our goals are:
- increasing billed sales by at least 20 percent (revised down from 30 percent)
- achieving at least 1.7 million registered users (revised up from 1.5 million)
- reaching an object volume of 450,000
- streamlining core operations for further scalability
- preparing for listing on Nasdaq Stockholm
For more information, please contact:
Kim Mortensen – CEO
Tel. +46 40 - 685 29 00
This information is information that BIMobject AB (publ) is obliged to publish in accordance the EU Market Abuse Regulation. The information was provided by Kim Mortensen for publication on 15 August 2019 at 08.30 CEST.
BIMobject is a leading global IT company at the forefront of digitalization of the construction industry. BIMobject offers cloud-based platforms, with over 1,500 manufacturers providing digital product information. Around the cloud-based platforms, which currently have over 1.5 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 230 employees. In June 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, email@example.com, +46-8-528 00 399. www.bimobject.com