Basware Corporation, stock exchange release, 21 April 2022 at 8.45 a.m. EEST

January-March 2022

  • Cloud ARR order intake increased 40.5 percent to EUR 4.0 million (EUR 2.9 million), which amounted to 38.3 percent growth at constant currencies
  • Net sales increased 3.0 percent to EUR 38,878 thousand (EUR 37,742 thousand), which amounted to 1.2 percent organic growth at constant currencies
  • Cloud revenue increased 10.2 percent to EUR 31,997 thousand (EUR 29,043 thousand), which amounted to 8.1 percent organic growth at constant currencies
  • EBIT increased 69.6 percent to EUR 2,339 thousand (EUR 1,380 thousand)
  • Profit for the period was EUR 938 thousand (EUR -1,478 thousand)
  • Earnings per share (diluted) were EUR 0.06 (EUR -0.10)

Key figures

EUR thousand1-3/
2022		1-3/
2021		Change, %2021
Net sales 38,878 37,742 3.0 153,155
Cloud revenue 31,997 29,043 10.2 119,996
Cloud ARR order intake 4,029 2,868 40.5 17,064
EBIT 2,339 1,380 69.6 7,144
EBITDA 6,533 5,225 25.0 22,828
Gearing, %1 73.0 47.6 53.3 72.5
Cash and cash equivalents1 28,637 43,080 -33.5 31,060
Cash flow from operating activities 2,390 6,358 -62.4 20,435
Earnings per share, diluted, EUR 0.06 -0.10 N/A -0.99
Personnel1 1,360 1,334 1.9 1,347

1 At the end of the period.

The interim report is unaudited.

Guidance for 2022              

Basware guides the following for the full year 2022:

  • Order Intake to grow between 15 and 35 percent at organic constant currencies
  • Net sales to grow between 3 and 6 percent at organic constant currencies
  • EBIT between EUR 7 and 10 million

CEO Klaus Andersen:

"The first quarter of 2022 was a great start to the year for us. Our global sales execution was successful across all regions and the order intake grew with 38% y-o-y at organic constant currencies. Total net sales of EUR 38.9 million, up 1% y-o-y at organic constant currencies and Cloud revenue EUR 32.0 million, up 8% y-o-y at organic constant currencies. Consulting revenue of EUR 6.2 million, down 14% y-o-y at organic constant currencies. Cloud revenue growth was mainly driven by expansion business with existing customers and contribution from new logos was also significant. Enhanced activity in our implementation partner ecosystem, especially in North America, continued to impact our Consulting revenues. EBIT developed very positively to EUR 2.3 million for the quarter, bringing a substantial increase of 70% y-o-y. Profit for the period was EUR 0.9 million which was a significant milestone for us strategically. Our cash position remained strong and was EUR 28.6 million at the end of the quarter.

We experienced a more stable and slightly improved business environment in Q1, which combined with improvements in sales execution resulted in a substantial order intake growth of 38% y-o-y at organic constant currencies. The total order intake was EUR 4.0 million and the growth was mainly coming from new logo sales which increased by 156% y-o-y. A remarkable improvement was seen in North America, where several new customers were added to our portfolio such as TK Elevator, Kenan Advantage (KAG) and SPI Inc. Another notable customer was also acquired with South Australian Water. Expansion sales continued to grow, although more moderate than new logo sales. In Q1 new logos represented 47%, expansions 43% and transformations 10% of the total order intake. The share of partner influenced sales continued to grow both in absolute and relative terms y-o-y.

During the quarter we continued the development of our most recent technology innovation, Touchless Invoice Processing. Touchless Invoice Processing takes automation and efficiency to the next level and reduces further the manual effort required by our customers for invoice processing, all the way to the final approval of the invoice. During this quarter, we launched a Touchless Invoice Processing dashboard for selected pilot customers providing insight and guidance how to increase the touchless invoice processing ratio. An important enabler of touchless invoice processing is Smart Coding. During Q1, this feature was successfully validated by our pilot customers and will soon be available for all interested customers.

In Q1, the Executive team was strengthened in terms of responsibilities for Customer Support and Professional Services: two important areas for the company's future growth and success. 1st of March, I was very pleased to announce Matthias Lippert as Chief Customer Support Officer and Mikko Lampi as Chief Professional Services Officer of Basware. These new internal promotions add valuable industry and Basware knowledge to the Executive team enabling us to take the next steps towards providing our customers with the best possible customer experience.

Major parts of the world are currently in a state of unrest. We at Basware highly condemn Russia's military action against the sovereign nation of Ukraine. The direct business impact of the conflict on Basware has so far been insignificant, but the full effect of the indirect impact is still to be seen. In Q1 we saw indications of a slight change in the business environment with priorities changing, postponement of decisions and general caution, but not to any material extent. We are also aware of the increased risk of cyber-attacks, and we continue to monitor these risks with diligence. To demonstrate our support and help the victims of the war, Basware have donated financial aid for Ukraine refugees through the Red Cross in Romania.

The outlook of the year for Basware remains as communicated at the beginning of the year. In 2022 our focus remains on accelerating sustainable growth and continuing to improve our profitability. Strong global sales execution is high on our agenda and supported by the results for the first quarter of 2022, we are confident our full year goals are within reach."

Results conference call

Basware arranges a briefing for analysts and press, where CEO Klaus Andersen and CFO Martti Nurminen will comment on the events and financial performance of the past quarter. The results briefing can be followed via live webcast or teleconference. A recording of the briefing will be available shortly after the event.

Time: Thursday, 21 April 2022 at 2 p.m. EEST / 12 p.m. BST
Place: Basware HQ, Linnoitustie 2, Cello-building, Espoo, Finland
Video webcast and teleconference registration: https://basware.videosync.fi/2022-q1-results

Teleconference numbers:

Finland: +358 981 710 310
Sweden: +46 856 642 651
United Kingdom: +44 333 300 0804
United States: +1 631 913 1422

PIN: 65831260#

To join in analysts and press briefing, please contact ir@basware.com.

Basware Corporation

Klaus Andersen
CEO

For more information, please contact:
Martti Nurminen, CFO, Basware Corporation
Tel. +358 (0)40 751 7194, martti.nurminen@basware.com

Distribution:
Nasdaq Helsinki
Main media
investors.basware.com/en

About Basware:
Basware offers the largest open business network in the world and is the global leader in providing networked purchase-to-pay solutions and e-invoicing services. Our technology empowers organizations with 100% spend visibility by enabling the capture of all financial data across procurement, finance, accounts payable and accounts receivable functions. Basware's solutions play an important role in transitioning to a lower-carbon economy by enabling the digitalization and automation of Purchase-to-Pay enterprise processes that rely on paper. Basware is a global company doing business in more than 100 countries and is traded on the Helsinki exchange (BAS1V: HE). Find out more at https://investors.basware.com/en. 

https://news.cision.com/basware/r/basware-interim-report-january-march-2022--strong-order-intake-growth-and-profitability-development,c3549824

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