Redeye: Formpipe - Weak licenses, underlying growth

The sales of traditional licenses fell to SEK 5.0m, which was approximately half of what we expected. Due to its high margins, the decline had a large impact on adj. EBITDA, which came in at SEK 14.0m (17.2), while our forecast was SEK 18.2m. Besides the ongoing transition towards SaaS, management sees a negative effect on license sales following the Swedish election. However, Formpipe’s share of recurring revenue continues to increase. Support & Maintenance and SaaS grew by 15% YoY and amounted to 62% (52) of sales in Q1.

Read more in the research update: http://bit.ly/2XWePWN

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This is a press release from Redeye - Research Powered Investment Banking. https://www.redeye.se/