Accelerated growth with solid profitability: Interim report, January - March 2022
The first quarter
- Net sales MSEK 118.7 (94.4), rendering a sales growth of 26% (11%)
- Recurring revenue MSEK 71.9 (52.2)
- The quarter was impacted by items affecting comparability amounting to MSEK 0.0 (0.0) (revaluation of warrant liability)
- EBITA MSEK 30.4 (26.3), rendering an EBITA margin of 26% (28%)
- Adjusted EBITA margin 26% (28%)
- Net income MSEK 16.2 (16.8)
- Basic earnings per share amounted to SEK 1.22 (1.26) and diluted to SEK 1.22 (1.26)
The CEO’s view
As we leave the first quarter behind us, we can point to a strong inflow of recurring revenue, leading to accelerated ARR growth of 38%. Total growth amounts to 26%. In January, we welcomed over 30 new colleagues, and we are continuing to recruit at a high tempo for all roles in all markets. Profitability remains strong, and our EBITA margin is 26%.
Successful customer relationships as a competitive tool
Our goal is to help companies become really sharp at customer care and customer management so that they can, in turn, provide their own customers with the best possible help. Accordingly, the fact that our customers, including Volvofinans Bank and Mälarenergi, are winning prizes for the best customer service in their sectors is totally in line with our ambition. With a technical platform which permits companies to grow and develop, we deliver constant value - not just initially, but over time. An excellent example of this is the work we have carried out together with Swedese Möbler AB and Energi Danmark A/S to modernise and improve their existing solutions.
Customer care as a competitive tool has always been important, but in a world in which services and products are becoming increasingly alike, at the same time as price pressure is hardening, truly professional customer management is a sure way of standing out. If we succeed in this, we not only make our customers successful but we also make the lives of the end customers much easier.
Our European markets are picking up speed
As we have already mentioned, the business climate has gradually improved, and this has helped us double net sales in the Rest of Europe. During the quarter, we continued to close many excellent deals, not least within our industry verticals. We are pleased to welcome a number of new customers, including the Danish company, Provinord A/S, Raxtar B.V. in the Netherlands, Gudbrandsdal Energi AS in Norway and the Swedish consulting firm, Semcon AB.
Just as we were beginning to celebrate countries reopening, the Russian invasion of Ukraine cast a heavy shadow across the world, creating new uncertainty in the markets. Lime is not directly impacted by the invasion since we do not have any direct sales to or any operation in either Ukraine or Russia. The ongoing war is affecting the market situation in the global economy, and it is difficult to determine what the consequences will be. The market situation has, however, improved with the easing of the pandemic, and at present the market for CRM solutions is good, and we do not believe that the events in Ukraine will have a negative effect on our ability to do business.
Product packaging - the path to faster deliveries and increased customer value
A clear trend in the CRM market is that customers are increasingly demanding industry-specific solutions that can be implemented rapidly. We are currently working on clearer packaging for solutions aimed at sales, marketing and case management, as well as for selected industry verticals. This will help our customers get up and running more quickly with just the right solution, and give us the opportunity to focus on the unique twist - customisation which generates that crucial extra value for the customer.
Another product innovation which will generate massive value for our customers is the launch of our webchat solution, Lime Chat. Thanks to the successful integration with our German acquisition, Userlike, the first customers are now ready to implement this new functionality which makes it easy for companies to communicate with their customers on all modern channels.
Investing in continued growth
For several years now, we have offered Lime Go – a fantastic product for sales organisations. Still, we are well aware that it has not always achieved its full potential. When we are not achieving the results we are looking for, we must be brave enough to change our approach. We have strong and successful machinery which has made our main product, Lime CRM, one of the go-to players in the market. Lime Go is a different type of product, and so it requires a different approach to achieve its full potential. For that reason, we decided to set up Lime Go as its own separate business area. We are already seeing positive signs that this is the right way forward, with improved new sales and an increased rate of recruitment to the development team.
With increasing business and our long-term establishment in Europe, high recruitment tempo and clearer offering, we are continuing to deliver long-term profitable growth in a market which is constantly facing new challenges.
/Nils Olsson, Managing Director and CEO, Lime Technologies
Read the entire report in the attached PDF.
Invitation to webcast for the presentation of Lime Technologies’ Interim report for January - March 2022
Today, April 26, at 09:30 CEST, analysts, investors, media, and other interested parties are invited to attend a webcast where Lime’s CEO, Nils Olsson, and CFO, Magnus Hansson, will comment on the published report and answer questions. The presentation will be held in English.
The presentation material will be available on Lime’s website.
The link to the webcast can be found here.
For more information, contact:
Lime Technologies AB (publ)
Nils Olsson, CEO / +46 736-44 48 55 / nils.olsson@lime.tech
Magnus Hansson, CFO & Head of Investors / +46 708-55 55 40 / magnus.hansson@lime.tech
This information constituted inside information prior to publication. This is information that Lime Technologies AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 07.50 CET on April 26, 2022.
About Lime
Lime helps European businesses to become better at customer care. The company develops and sells digital products for” Customer Relationship Management”, development and management of customer relationships. Lime was founded in 1990 and has over 350 employees. The company has offices in Lund, Stockholm, Gothenburg, Gävle, Oslo, Copenhagen, Utrecht, Cologne and Helsinki. Their customers include everything from sole traders to large organisations.www.lime-technologies.com