With strong growth and good profitability we will continue to invest in our markets: Interim report January - September 2022

The third quarter 

• Net sales MSEK 111.9 (92.8), rendering a sales growth of 21% (23%) 
• Recurring revenue MSEK 75.2 (64.7)
• The quarter was impacted by items affecting comparability amounting to MSEK 0.0 (-0.0) (attributable to acquisitions)
• EBITA MSEK 28.9 (25.5), rendering an EBITA margin of 26% (27%)
• Adjusted EBITA margin 26% (27%) 
• Net income MSEK 14.7 (11.1)
• Basic earnings per share amounted to SEK 1.11 (0.83) and diluted to SEK 1.10 (0.83)

The first nine months

• Net sales MSEK 354.6 (290.2), rendering a sales growth of 22% (18%) 
• Recurring revenue MSEK 220.5 (177.9)
• The first nine months were impacted by items affecting comparability amounting to MSEK 0.0 (-1.1) (attributable to acquisitions)
• EBITA MSEK 91.0 (78.3), rendering an EBITA margin of 26% (27%)
• Adjusted EBITA margin 26% (27%) 
• Net income MSEK 48.7 (41.3)
• Basic earnings per share amounted to SEK 3.67 (3.11) and diluted to SEK 3.65 (3.11)
   

CEO's comments

In the third quarter, we delivered strong growth of 21 % and good profitability of 26 %. At the same time, we are maintaining a high recruitment tempo, and in August we onboarded a record number of new colleagues across all our offices throughout Europe.

Value-generating services for customers exposed to the unstable market
I am proud that we remained strong during the third quarter, with organic growth of 21 % in an unstable market. I am also very pleased that, during a quarter like this, it became clearer than ever that we are able to help our customers, both through revenue-driving changes and efficiency-boosting digitalization. Not least, our focus on the highly-stressed energy segment is making it possible for companies to respond to the rising demand for fast and value-generating services for their customers. In this way, we not only make our customers more successful, we also significantly simplify life for the end-customer while having a positive impact on functions that are essential for the community.

Several deals despite longer sales processes
As we have mentioned before, the tougher business climate is reflected primarily in longer sales processes. In the present situation, we are competing not only with other CRM suppliers but also with companies’ general willingness to invest. The change in economic activity is most noticeable in Germany, where the business climate has been strongly affected. Consequently, I am particularly happy that our customer-oriented, dedicated teams continue to deliver on several rewarding deals within our verticals. Among others, we welcome Landskrona Energi, Luleå Miljöresurs and SHH Bostadsutveckling as new customers during the quarter. We are also deepening our collaboration with one of the biggest Real Estate companies in Norway, Entra Eiedom AS, customers since 2012.

A more international company with strong verticals 
Our strategic focus remains on long-term profitable growth, and we will continue to invest to build an even stronger Lime -even in this challenging market. We are building a more international company with our primary focus currently being on scaling our existing markets within selected verticals. The Swedish market continued to perform well during the quarter, and we are also delivering solid growth in the rest of Europe. To support an even more international business and to lay the groundwork for further growth, we are continuing to recruit in all our markets, with the aim of onboarding over one hundred new colleagues in 2022. We will also sharpen our focus on selected verticals, in which we will build stronger local brand awareness and positioning in every market.

In accordance with our growth strategy, we are continuing to evaluate potential acquisitions, and as the market situation is currently unfolding, we believe that the acquisition market will be even more favourable going forward. With good profitability, strong cash flows and low leverage, we are well placed to take full advantage of future opportunities. At the same time, we refuse to compromise on our evaluation of future acquisition candidates, which must generate added value for our customers, broaden our product offering, enrich our culture and strengthen our position in existing or new markets. We held a number of conversations with various companies during the quarter, but these have not so far resulted in closer collaboration. 

Prepared for a turbulent market 
How the market will behave during the autumn is still uncertain, but regardless of market conditions, we are well placed with our dedicated teams, excellent cost control, high proportion of recurring revenue, low customer concentration in several different verticals and great opportunities to increase sales through upselling. As we have previously stated: With strong growth and high profitability over more than twenty years, our history proves that we can perform – in good times and bad. 


/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 - September 2022

Today, October 20, 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 October 20, 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 almost 400 employees. The company has offices in Lund, Stockholm, Gothenburg, Gävle, Oslo, Copenhagen, Utrecht, Cologne, Helsinki and Krakow. Their customers include everything from sole traders to large organisations. www.lime-technologies.com