The complete report is available on the Company's website info.bimobject.com.
Fourth quarter 2019
· Invoiced sales amounted to
· The distribution between projects and web services (subscriptions) was 29/71 (42/58) percent.
· High proportion of sales were invoiced late in the quarter which impacted net sales negatively as revenue recognition will occur in 2020. The Group's net sales decreased by 20 percent to
· The Group's operating loss amounted to
· Basic earnings per share amounted to
· Group cash flow from operating activities was
· The accumulated number of users in thousands increased by 70 percent to approximately 1,785** (1,052).
· The accumulated number of downloads amounted to 49.1 million**.
· The number of manufacturers (Brands) was 1,656**.
· Carl Silbersky appointed new CEO.
· Christophe Carvenius appointed SVP Head of Growth,
·
·
Full-Year 2019
· Invoiced sales increased by 14 percent to
· Net sales for the full year increased by 17 percent to
· Johan Svanström was elected to the Board.
· The Board proposes that no dividend be paid.
Significant events after the end of the period
· Joint venture formed in
** Including calculated net addition from Polantis and Convergo.
CEO's comments
2019 - a year of both turbulence and growth
Within just twelve months,
It is clear that the many changes impacted invoiced sales growth, which failed to live up to the communicated goal of 20 percent growth. We did however start to tackle cost and efficiency throughout the business.
When I became CEO in October, I made immediate changes to refocus the organization on growth by:
· Reshaping the management team, freeing our most senior sales leaders to focus on their home markets.
· Focusing our go-to-market and product strategies on our web services (ARR) offering.
· Trimming our R&D and content production teams to increase efficiency.
Still, it speaks to the strength of the business platform
Web services (ARR) increased 31 percent
In the fourth quarter, invoiced sales grew by 2 percent. A high proportion of Q4 sales were invoiced late in December which impacted net sales negatively as revenue recognition will occur in 2020. This has a negative effect on net sales during the fourth quarter, which was down by 20 percent.
Web services continued to show growth in invoiced sales during the fourth quarter, and were up 31 percent in 2019. Worth repeating, this represents a
Project invoiced sales, on the other hand, faced continued competition and were down 10 percent year-over-year, from
Focus on web services growth
The Nordics show continued momentum, and invoiced sales grew by 15 percent with a positive inflow of new customers.
EMEA, the Nordics excluded, faced headwinds in the quarter and invoiced sales decreased primarily due to substantial weakness of project sales in
In
In
Cost control
Our cost control efforts paid off in the quarter and operating cost remained stable versus Q4 last year. For the year, cost increased as we acquired companies. In addition, the result was impacted by non-recurring costs related to bad debt accruals and restructuring, including the closing of our
Quarter on quarter the number of full time employees are down 17 employees. Now, keeping the head count stable and reallocating hiring to sales, marketing and web services R&D, we have an organization ready to scale up the business while maintaining the present cost level.
Strategy and goals for 2020
· Focus on web services (ARR) with a goal of at least 40 percent growth in the full year
· Significantly increase the number of manufacturers with a goal of at least 500 new manufacturers (BPMs)
· Continued strong increase in the number of registered users
We intend to launch a new pricing model in Q2 as well simplifying the process for new customers to get onboard the
We are still early in the quarter and we are seeing early signs of regained sales momentum coupled with improved cash flow.
Carl Silbersky
CEO
For more information, please contact:
Carl Silbersky - CEO
Tel. +46 40 - 685 29 00
E-mail: ir@bimobject.com
__________________________________________________________________________
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