Financial summary
· Net sales of MSEK 34.8 (34.4), +1%.
· Platform net sales of MSEK 26.2 (23.4), +12%.
· EBITDA of MSEK -14.6 (-33.3), corresponding to an EBITDA margin of -42% (-97%).
· Basic earnings per share amounted to
· Group cash flow* from operating activities of MSEK -4.2 (-28.4).
· The accumulated number of users in thousands increased by 32 percent to approximately 2,021 (1,542).
· The accumulated number of downloads amounted to 60.4 million (40.1).
· The number of brands amounted to 1,874 (1,553).
Significant events during the period
· Cost reduction program of MSEK 50 on an annualised basis initiated.
·
· The Annual General Meeting
Significant events after the end of the period
· No significant events to report.
* Current investments have after a change in assessment been separated from cash and cash equivalents in the cash flow statement. All key ratios have been restated.
CEO's comments
The next normal
In
It is in this light that I look back at the second quarter. Clearly, COVID-19 is a humanitarian, social and economic crisis that has shaken the world. In this context,
But looking at COVID-19 from our privileged position as a digitalisation enabler, I believe the impact on
Navigating the crisis
"Never let a serious crisis go to waste" has been our guiding principle throughout the quarter. As customers entered office lockdowns and spending freezes, we quickly realised that when a new customer would sign was not under our control.
Instead, we chose to spend our energy where we could make a difference. First of all, we focused on churn and accounts receivable with the ambition to minimise customer losses and bad debt. Second, we decided to accelerate the reorganisation of our regional subsidiaries, through the MSEK 50 cost restructuring program announced in April.
I am proud that we accomplished what we set out to do. Our Platform revenues grew 12%. While the inflow of new customers slowed, churn remained stable and low. Our cost base continued to shrink, down 29% year-over-year, and I'm confident we will be able to capture the majority of our announced cost reductions already in 2020. Operating cash flow also improved dramatically as we continued to collect on our accounts receivable. We are quickly approaching a position where we can choose if and how soon to become profitable.
A new go-to-market model
I would like to emphasize that our regional reorganisation is not just about cost savings. We have let go of expensive and under-utilised sales executives, but we have also reshaped the sales organisation into three functions - Prospecting, Sales and Customer Success - each with its own clear purpose, set of responsibilities and success metrics. This allows us to attract, close and serve customers better through specialisation, and to hire selectively with a clear picture of the return on investment.
In the quarter, we also launched our new, simpler and more value-based pricing model. It enables us to sign up smaller customers directly online and to paint a clear upgrade path for existing customers. As most of our customers are on annual contracts, the list price increases will gradually impact revenues as contracts renew over the next 12 months.
Focused on growth
With our transformation to a true platform company nearly complete, and our financial position under control, we will whole-heartedly focus the second half of 2020 on user growth and revenue growth - organic as well as acquired.
Carl Silbersky
CEO
Presentation
Analysts, investors and the media are invited to participate in the presentation at 14.00 CEST on
Webcast: https://tv.streamfabriken.com/bimobject-q2-report-2020
Teleconference: Dial-in number SE: +46851999383
The complete report is also available on the company's website (investors.bimobject.com).
For more information, please contact:
Carl Silbersky - CEO
Phone: +46 40 - 685 29 00
E-mail: ir@bimobject.com
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