TIE Kinetix Announces Very Strong First Half Year 2021
Press release interim consolidated financial statements TIE KINETIX N.V.
Financial information in this interim report is unaudited.
TIE Kinetix, the leading provider of software as a service (SaaS) managed solutions for supply chain digitization with EDI, announced its half year interim financial results for FY 2021 today. All figures stated are in thousands of euros unless otherwise indicated.
TIE Kinetix delivered a very strong first half year 2021. The company has seen organic revenue growth with an increase in subscription-based revenue, and net income from continuing operations is significantly higher than in 2020 (+1,119%). This growth can be attributed to sales to both new and existing customers and notable growth in consultancy revenue in the Netherlands.
With large contracts in the business-to-business and business-to-government markets in the Netherlands, Germany, and the U.S., order intake has increased (+22%). This growth is fully attributable to SaaS order intake and is in line with the company’s strategic focus to grow SaaS revenue. Additionally, a more streamlined product offering has led to a decrease in operational expenses, resulting in a sharp EBITDA increase (+50%).
Key Figures: First Half Year Results (Period Oct. 1, 2020 – Mar. 31, 2021)
|(€ * 1000)||HY 2021||HY 2020*||Variance (%)|
|Of which: Subscription-based:||5,735||5,413||+6%|
|Net income from continuing operations||871||71||+1,119%|
|* HY 2020 key figures are restated for the following:|
|- To exclude results from TIE International B.V. that was sold during FY 2020 (classified as discontinued operations);|
|- The table ‘Key Figures’ also excludes results from the Demand Generation business that was sold during FY 2020. Please note that the FY 2020 and HY 2020 continued operations in the FY 2020 annual report and HY 2021 interim consolidated financial statements (pages 11 and onwards of this report) include results from the Demand Generation business in FY 2020 and HY 2020 respectively as part of continuing operations. Please refer also to section ‘Use of alternative performance measures’ on page 8; and|
|- To include the effects of the new lease accounting standard IFRS 16.|
|Reference is made to notes 5 and 8 of the interim consolidated financial statements.|
Revenues for the first half year of FY 2021 have grown organically by 3% to €7,426K compared to €7,185K in the first half year of FY 2020 when excluding the Demand Generation and Google AdWords for Channel business lines that were sold in the second half of 2020. SaaS revenues have grown by 17% with the increased usage of services from our cloud-based FLOW platform. As customers continue to migrate to our FLOW platform, maintenance and licenses revenue of on premises solutions have decreased. Additionally, the U.S. segment has benefitted from a corona-related government grant, and all segments have profited from a relative reduction of cost of sales.
Jan Sundelin, CEO, TIE Kinetix says: “In the first half year TIE Kinetix has successfully concluded several large deals in the business-to-business market as well as in the business-to-government market. At the same time, we have a solid pipeline of orders that we expect to come in in the second half year. These orders with new and existing customers are the proof of a strong demand for our products and services focusing on 100% digitalization of the supply chain. The increased awareness for 100% digitalization is only strengthened in the pandemic and lockdown measures taken in the countries of our operations. With our costs under control, the company operates well ahead of plan for the year.”
To access the full version of the press release, please see the attached PDF.
This document may contain expectations about the financial state of affairs and results of the activities of TIE Kinetix as well as certain related plans and objectives. Such expectations for the future are naturally associated with risks and uncertainties because they relate to future events, and as such depend on certain circumstances that may not arise in future. Various factors may cause real results and developments to deviate considerably from explicitly or implicitly made statements about future expectations. Such factors may for instance be changes in expenditure by companies in important markets, in statutory changes and changes in financial markets, in the EU grant regime, in the salary levels of employees, in future borrowing costs, in future take-overs or divestitures and the pace of technological developments. TIE Kinetix therefore cannot guarantee that the expectations will be realized. TIE Kinetix also refuses to accept any obligation to update statements made in this document.
For more information please contact:
TIE Kinetix N.V.
Jan Sundelin, CEO, or Michiel Wolfswinkel, CFO
De Corridor 5d
3621 ZA Breukelen
About TIE Kinetix
At TIE Kinetix, we deliver Software as a Service (SaaS) solutions to companies, governmental institutions, and their suppliers, to help them exchange all business documents electronically and simplify supply chain processes as a result. FLOW Partner Automation, our software platform, empowers its users to engage in smart business exchanges and streamline communication through seamless integration with any existing system. Since 1987, we have supported all EDI and e-invoicing standards and communication methods worldwide. Today, our global team of experts share their knowledge with our 2,500+ customers, facilitating the exchange of over 1 billion documents through FLOW each year.
TIE Kinetix is a public company (Euronext: TIE), and has offices in the Netherlands, France, Germany, Australia, and the United States. For more information, visit www.TIEKinetix.com, and follow us on Linkedin, Twitter, Facebook, Xing, and YouTube.
Submitted by Investor Relations on Wednesday, May 12, 2021.