SimCorp reports solid order intake, ARR (LTM) growth of 10.4%, revenue growth of 4.3% and EBIT margin of 13.5% in Q1 2022

Company Announcement no.  23/2022

Q1 2022 highlights

• Total order intake of EUR 26.0m was more than double the EUR 12.6m signed in the same period last year, primarily due to early renewals of two subscription agreements in North America (NA) where revenue will be recognized in Q1 2023 and in 2027, respectively.
• In Q1 2022, two new SimCorp Dimension deals in Luxembourg and NA and one new SimCorp Sofia deal in Italy were signed. In addition, we welcomed three new clients through our existing outsourcing partners, and three Investment Accounting Services (IAS) deals were signed. No revenue was recognized in Q1 on the NA and IAS deals.
• At March 31, 2022, the order book amounted to EUR 81.5m, an increase of EUR 32.4m when compared with the order book at March 31, 2021, and an increase of EUR 8.5m when compared with the order book at December 31, 2021.
• Annual Recurring Revenue (ARR) for the last twelve months covering the period Q2 2021-Q1 2022 was EUR 283.2m, an increase of 10.4% when compared with the period Q2 2020-Q1 2021, and an organic increase of 9.7% when measured in local currencies, due to solid growth in SaaS revenue.
• Reported revenue was EUR 114.7m, an increase of 4.3% when compared with a particularly strong Q1 2021, and an organic increase of 4.1% when measured in local currencies. In Q1 2021, two SimCorp Dimension subscription order renewals in North America, signed in 2020, were recognized as revenue, positively impacting both revenue and EBIT in Q1 2021.
• EBIT of EUR 15.5m was as expected lower than EUR 23.9m in Q1 2021 due in large part to investments in the future, including investments in new SaaS operations and solutions.
• EBIT margin was 13.5% compared with 21.8% in Q1 2021. The EBIT margin measured in local currencies was 13.4%.
• Net profit was EUR 13.3m compared with EUR 20.2m in Q1 2021.
• Free cash flow was EUR 20.1m compared with EUR 39.4m in Q1 2021. The decrease was due to lower profit and timing of invoicing and payments, which led to higher receivables and higher paid income and salary related taxes in Q1 2022.

Subsequent events

• Since the closing of Q1 2022, one new SimCorp Sofia deal in Italy and a strategic partnership Memorandum of Understanding with a leading investment manager and existing client in APAC have been signed.

Financial guidance 2022

• SimCorp maintains its expectations for 2022 as announced in its Annual Report 2021, i.e. the expectations for 2022 are to grow revenue in local currencies by between 7% and 12%, and to grow Annual Recurring Revenue (ARR) in local currencies by between 10% and 15%, and to generate an EBIT margin measured in local currencies of between 23.0% and 26.0%, excluding expected exceptional costs of EUR 3-5m in 2022 in relation to supporting our Ukrainian employees and their families.

Management’s report for the three months ended March 31, 2022

SimCorp CEO, Christian Kromann, comments: In Q1 2022, we achieved a solid order intake and delivered ARR and organic revenue growth, which demonstrates the strength and relevance of our SaaS offering and the strong match of this offering to our client base. In many ways, however, the war and humanitarian crisis in Ukraine defined our Q1 2022. With more than 240 colleagues at our office in Kyiv, our paramount focus has been to ensure the safety of them and their families. Our thoughts remain with the Ukrainian people at this difficult time.”

Investor presentation

SimCorp’s Executive Management Board will present the report on a conference call (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/qfo3y3tq

• The presentation will be available prior to the conference call via SimCorp’s website
  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 2326 0000)

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)

Rune Jonassen, Internal Communication Manager, SimCorp A/S (+45 2320 1175)