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BIMobject: Interim Report January – March 2020

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Financial summary

  • Net sales of MSEK 35.8 (32.7), +10%.
     
  • Platform* net sales (recurring revenue) amounted to MSEK 23.8 (21.5), +10%.
     
  • Invoiced sales of MSEK 28.6 (29.6), -3%.
     
  • Platform* invoiced sales amounted to MSEK 20.6 (16.8), +22%.
     
  • EBITDA of MSEK -23.3 (-28.3), corresponding to an EBITDA margin of -65% (-86%).
     
  • Basic earnings per share amounted to SEK -0.22 (-0.23).
     
  • Group cash flow** from operating activities MSEK -13.6 (-24.6).
     
  • The accumulated number of users in thousands increased by 32 percent to approximately 1,879 (1,429).
     
  • The accumulated number of downloads amounted to 54.2 million.
     
  • The number of brands amounted to 1,824 (1,502).

* Previously reported as “Web Services”. Consists of recurring revenue, including subscription fees and license fees on the BIMobject platform.

** Current investments have been separated from cash flow and cash equivalents after a change in assessment. All key ratios have been restated.

Significant events during the period

  • Joint venture formed in Thailand with the country’s largest industrial conglomerate SCG/CPAC.
     
  • Major product upgrades announced in March 2020 at BIMobject® LIVE.

Significant events after the end of the period

  • Cost reduction program of MSEK 50 on an annualized basis initiated.
     
  • Stefan Larsson to leave operational duties at company.

CEO's comments

The transformation continues

Since becoming CEO, my goal has been to create a more focused and efficient BIMobject. During 2019, the transformation started internally with a new management team, new goals and a product development strategy focused on our platform.

This quarter, the commercial transformation started. BIMobject has struggled with explaining what we offer and why customers should care. We have made it hard to become our customer. The result has been regional operations that are inefficient and expensive.

The savings program we announced in the beginning of April should be seen in the light of this commercial transformation. We are implementing a new digital-first marketing & sales model, automating time consuming administrative tasks, simplifying our pricing model, and rolling out a Customer Success organization to give customers maximum return on their investment.

During this quarter we also entered a strategic partnership with CPAC, a manufacturer of cement and building materials, owned by SCG, the largest industrial conglomerate in Thailand.

Growth despite COVID-19

BIMobject has an international footprint. Since early March, COVID-19 hit virtually all our main markets hard, closing offices and delaying decision making at our customers.

A key strength in our business model is our large base of annual recurring revenue (ARR), that continued to drive revenue growth in the quarter with 10%. The effect of the pandemic was clearer on our invoiced sales. While our Platform business (previously reported as “Web Services”) continued to grow invoicing by 22%, Services (formerly “Projects”) declined as customers postponed content development projects. Churn remained low.

Despite the deep recession we are in, we also see that COVID-19 has accelerated the digitalization of our customers. As the world moves to home offices and exhibitions are cancelled, building product manufacturers are forced to find new ways of influencing architects and engineers. bimobject.com, a global exhibition that operates every day, all year round, is the answer to their need.

Strong improvements in cost and cash flow

We have been working hard to strengthen the control of our cost base and working capital. Our total costs are now down to the same level as Q1 2019 and compared to Q4 2019 total cost declined by 11%. Our cash flow from operating activities also improved by MSEK 11.0 mainly due to improvement on account receivables.

In April, we announced a new cost reduction program of MSEK 50 on an annualized basis, based on reducing headcount in central administration and our regional subsidiaries, as well as external spend.

R&D focus generating results

Our focused R&D is already producing results. In the quarter, we announced several major product news:

  • A smarter search engine on bimobject.com
     
  • BIMobject® Insights, the next generation analytics platform for our customers.
     
  • Multiple changes to make it easier and faster to publish new product catalogues on our platform.

The results have been quick. BIMobject® Insights saw over 100 customers using the beta before it is even launched, and user activity set new records in the quarter. We are now counting down to 2 million registered users.

Carl Silbersky, CEO

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The complete report is also available on the Company’s website (investors.bimobject.com).

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

This information is information that BIMobject AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was provided by Carl Silbersky for publication on 7 May 2020 at 08.00 CEST.
 

About BIMobject
BIMobject, founded in 2011, is a leading global IT company at the forefront of digitalization of the construction industry. Through www.bimobject.com and www.polantis.com, the company offers a cloud-based platform that provides 1.9 million registered users from the construction industry, such as architects and engineers, with digital product information (BIM objects) from over 1,800 building product brands. As of December 31, 2019, the company had over 200 employees in Europe and North America, and annual net sales of 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.

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