SimCorp reports revenue growth of 8.5% and EBIT margin of 23.2% in 9M 2021

Company Announcement no. 51/2021

Q3 2021 highlights:

• Reported revenue was EUR 107.3m, an increase of 7.1% when compared with Q3 2020. Measured in local currencies, organic revenue increased by 5.9% when compared with Q3 2020.
• EBIT was EUR 24.2m and EBIT margin was 22.6% compared with EBIT of EUR 22.4m and EBIT margin of 22.3% in Q3 2020.
• In Q3 2021, two significant transformational SimCorp Dimension license deals were signed with existing clients. The two deals included conversions from perpetual to subscription-based licenses.
• Order intake was EUR 27.8m, an increase of EUR 6.1m or 28.1% compared with Q3 2020, primarily due to conversions.
• Free cash flow was EUR 24.0m, an increase of 35.5% when compared with Q3 2020.

9M 2021 highlights:

• Reported revenue was EUR 336.0m, an increase of 8.5% compared with 9M 2020. Measured in local currencies, organic revenue increased by 9.4% when compared with 9M 2020.
• Annual Recurring Revenue (ARR) for the last twelve months covering the period Q4 2020-Q3 2021 was EUR 268.7m, an increase of 9.9% when compared with the period Q4 2019-Q3 2020, and an increase of 11.1% when measured in local currencies.
• EBIT was EUR 78.1m compared with EUR 65.9m in 9M 2020.
• EBIT margin was 23.2% compared with 21.3% in 9M 2020. Measured in local currencies, EBIT margin was 23.5%.

• Net profit was EUR 61.5m compared with EUR 45.7m in 9M 2020.
• Order intake was EUR 70.6m compared with EUR 58.5m in 9M 2020.
• At September 30, 2021, the order book amounted to EUR 60.5m, an increase of EUR 16.7m when compared with the order book at September 30, 2020, and an increase of EUR 4.4m when compared with the order book at December 31, 2020.
• Free cash flow was EUR 79.8m, an increase of 13.2% when compared with 9M 2020.

Financial guidance 2021:

• SimCorp maintains its expectations for 2021, as announced in its Annual Report 2020 and Q2 2021 Interim Report, to grow revenue in local currencies by between 6% and 11%, and to generate an EBIT margin measured in local currencies of between 24.5% and 27.5%.
• Conversions (from perpetual to subscription-based licenses) and renewals (of subscription-based licenses) are expected to have a more positive impact on both revenue and EBIT margin than anticipated in earlier guidance.

SimCorp CEO, Christian Kromann, comments: “This quarter, we saw continued strong momentum in the commitment to our strategic journey from existing clients, evidenced by significant transformational deals, including new functional features, subscription services and hosting, that has led  to a strong growth in our Annual Recurring Revenue (ARR). As expected, we are still facing headwinds on new sales from the negative impact of COVID-19, including restrictions on the ability to meet in person, which leads to postponed or longer sales processes”.

Investor presentation

SimCorp’s Executive Management Board will present the report on a conference call Friday, November 12, 2021 at 11 am (CEST). Please use any of the following phone numbers to dial in to the conference call:

At the end of the presentation there will be a Q&A session. It will also be possible to follow the presentation via this link:  https://edge.media-server.com/mmc/p/vaafi8xx

The presentation will be available prior to the conference call via SimCorp’s website http://www.simcorp.com/en/about/investor/presentations-and-events/quarterly-and-annual-investor-meetings.

Enquiries regarding this announcement should be addressed to:
Investor contacts:

Christian Kromann, Chief Executive Officer, SimCorp A/S (+45 3544 8800, +45 28109090)
Michael Rosenvold, Chief Financial Officer, SimCorp A/S (+45 3544 8800, +45 5235 0000)
Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8800, +45 2892 8881)

Media contacts:

Tobias Brun-Falkencrone, Group Communications Director, SimCorp A/S (+45 2938 1284)
Mette Trier, Communications Principal, SimCorp A/S (+45 4060 8296)