BIMobject AB initiates cost reduction program and provides business update relating to COVID-19
Carl Silbersky, CEO of BIMobject: “The COVID-19 pandemic is having an impact on all of us and the business climate across the globe. The growing recurring revenues from our software-as-a-service offering provides a solid foundation for our company. Still, given the level of uncertainty in the world, we have made the hard decision to initiate a comprehensive SEK 50 million cost reduction program, to preserve our strong cash position and accelerate our path to profitability. At the same time, I’m proud to report that our platform continues its strong growth, with record user activity.”
Business update relating to COVID-19
For the first quarter of 2020, preliminary and unaudited invoiced sales amounted to SEK 28.6 million, a change of -5% compared to the first quarter of 2019. Invoicing was negatively impacted due to delayed decision making processes at customers and continued low volumes within Content Production. In addition, sales to new customers in North America and the Nordics did not meet expectations.
On the positive side, annual recurring revenue (ARR) in the quarter grew by 22% year-over-year, customer churn remained low, and the company saw growing interest from new prospects looking to conduct more of their marketing & sales digitally, due to tradeshows and in-person meetings being cancelled. Web Services, the company’s software-as-a-service offering, made up 72% of invoiced sales.
The strong platform growth continued, with 1.9 million registered users as of March 31, 2020, a growth of 33% since March 31, 2019. User activity also remained strong and growing.
New cost reduction program
In light of the uncertain market situation, the company has decided to implement a comprehensive cost reduction program, which will lower operating expenses by SEK 50 million on an annualized basis, compared to 2019. The company expects that a majority of the savings will be possible to capture already in fiscal year 2020.
The cost savings stem from
- Reducing administrative staff (IT, legal and other administrative) at company headquarters.
- Terminating all remaining software development consultants, with the plan to over time replace them with new, permanent hires.
- Streamlining regional operations, by reducing administrative staff and trimming the sales & marketing teams.
- Reducing other spend, e.g., rent, travel, trade shows, IT and software.
As part of the cost reduction program in North America, Stefan Larsson will step down from his role as CSO and interim President, North America, and leave all operational duties at the company. Stefan Larsson will remain on the Board of Directors.
Other changes to company management
The company also announces the following change, unrelated to the cost reduction program:
- VP of Product Research, Johan Dyrssen, will leave the executive management team, but retain his role and duties.
For more information, please contact:
Carl Silbersky – CEO
Phone: +46 40 - 685 29 00
E-mail: ir@bimobject.com
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 manufacturers. 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.
This is information that BIMobject AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11:06 CEST on April 9, 2020.