DIGITAL WORKFORCE SERVICES OYJ Digital Workforce Services Plc’s Financial Statement Bulletin,
Company announcement
Strong growth in 2021
Unless otherwise stated, the comparison figures provided in parentheses refer to the corresponding period of the previous year.
July-
- The revenue was
EUR 11.3 (9.7) million and the growth was 16.5% -
The revenue of the Continuous Services was
EUR 6.1 (4.9) million, a growth of 24.3% and the share of revenue grew to 53.8% -
The gross profit was
EUR 3.9 (3.1) million and the relative gross margin improved 2.4 percentage points -
The adjusted EBITDA was
EUR -0.3 (-0.2) million and -2.8% (-1.7%) of revenue -
The EBIT was
EUR -0.8 (-0.3) million and -7.2% (-2.8%) of revenue
January-
- The revenue was
EUR 22.4 (19.1) million and the growth was 17.1% -
The revenue of the Continuous Services was
EUR 11.7 (9.0) million, a growth of 29.4% and the share of revenue grew to 52.1% -
The gross profit was
EUR 7.9 (6.2) million and the relative gross margin improved to 35.4% (32.6%) -
The adjusted EBITDA was
EUR -0.6 (-0.4) million and -3% (-2%) of revenue -
The EBIT was
EUR -1.2 (-0.6) million -
The earnings per share (EPS) was
EUR -0 .6 -
Major new customers included e.g. Finnish Defense Forces,
Finnish Tax Administration , University Hospital North Midlands (UK ), University Hospital Birmingham (UK ),Portsmouth Hospitals University (UK ) andSomerset NHS Foundation Trust (UK ). - The Board of Directors is proposing to the Annual General Meeting that no dividend will be paid.
Key figures
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| 7-12/2021 | 7-12/2020 | 1-12/2021 | 1-12/2020 |
Net sales | 11 279 | 9 686 | 22 362 | 19 095 |
Net sales growth | 16,5 % | - | 17,1 % | 11,3 % |
Professional Services net sales | 5 206 | 4 799 | 10 703 | 10 085 |
Continuous Services net sales | 6 073 | 4 887 | 11 659 | 9 010 |
Share of recurring revenue | 53,8 % | 50,5 % | 52,1 % | 47,2 % |
Gross profit | 3 930 | 3 140 | 7 926 | 6 216 |
Gross margin % | 34,8 % | 32,4 % | 35,4 % | 32,6 % |
EBITDA | (684) | (166) | (956) | (406) |
EBITDA margin | -6,1 % | -1,7 % | -4,3 % | -2,1 % |
EBITDA adj. | (313) | (166) | (585) | (406) |
EBITDA adj. margin | -2,8 % | -1,7 % | -2,6 % | -2,1 % |
EBIT | (809) | (270) | (1 219) | (600) |
EBIT margin | -7,2 % | -2,8 % | -5,5 % | -3,1 % |
Net income | (3 013) | (346) | (3 578) | (906) |
EPS | (0,5) | (0,7) | (0,6) | (1,8) |
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Capital expenditure | 0 | (128) | (37) | (464) |
Operating cash flow | (568) | (135) | (1 310) | (394) |
Net debt | (18 283) | 575 | (18 283) | 575 |
Equity ratio | 69,0 % | -6,5 % | 69,0 % | -6,5 % |
Average number of personnel | 191 | 196 | 191 | 200 |
CEO Mika Vainio-Mattila’s review:
“The year 2021 was historical to our company in many ways: our net sales continued on a path of strong growth despite the extraordinary circumstances caused by the COVID-19 pandemic, and we were listed on the Nasdaq First North Growth Market Finland stock market. Our company is one of the world’s leading service companies for Robotic Process Automation and intelligent automation.1
We are currently experiencing a massive megatrend in knowledge work, which is related to digital transformation and to leveraging this change, developing cost efficiency, streamlining processes and accelerating development. We believe that everything that can be automated will be automated. Thanks to automation, software robots (digital workers) can assume responsibility for routine tasks and handle them tirelessly, precisely and without human errors. This provides human employees with time for more creative and meaningful tasks. Our growth strategy is based on our view according to which an increasing number of the services needed for intelligent automation will be acquired as cloud services.
According to the estimates of the
Our net sales grew strongly in 2021 as a result of our unique quickly-deployable and cloud-based service model. It facilitates our customers’ automation projects by eliminating friction and increasing the automation rate rapidly to provide immediate customer benefits. In addition, the customer can focus on its own business development. We can offer a better customer experience. Our customers across all industries can begin using our cloud service very easily and quickly. Since our service is cloud-based, our customers do not need to invest in technology, allocate IT resources or engage in negotiations with technology suppliers. We provide our customers with a reliable and up-to-date Open Digital Worker Platform environment in which our customers can utilize the cloud platform’s capabilities independently or with their selected partners.
Our continuous services, saw strong growth, and they currently yield the majority of our company’s net sales. The purpose of the services is to manage the services and solutions of software robotics and intelligent automation. They ensure that the digital workers operate as planned, increase capacity when necessary and develop themselves according to customer needs. The services create continuous cash flow since the use of the platform and maintenance of customer processes are typically charged per minute. The invoicing of the services begins immediately when establishing a new customer relationship.
Our company was originally established for the automation needs of the health care industry. In this sector, we have gained a strong foothold, especially in the
In accordance with our strategy, we are making efforts to grow our business, alongside our Nordic home markets, in the
In late 2021, we completed an initial public offering, listing on the Nasdaq First North Growth Market Finland. We are pioneers in that we are the only listed company in the world to focus exclusively on software robotics and intelligent automation. In the Nordic markets, we are aiming for strong organic growth and profitability by utilizing existing customer relationships and our strong market position. We also strive to develop new solutions for robotic process automation and intelligent automation.
Net funds from share issues are invested in deploying new technologies to maintain the high quality of our intelligent automation and end-to-end cloud services as well as our international position of leadership. We are currently in the process of negotiating with new technology suppliers about the features of the next product version (end-to-end service) in order to provide our customers with comprehensive process automation to boost competitiveness. The markets need solutions that effectively manage the entire automation system with its various technologies. For this, we are developing our end-to-end service offering.
The latest wave of the COVID-19 pandemic has increased the frequency of sick leaves and made the provision of professional services more difficult. Since we are an IT company, however, remote work arrangements have been relatively smooth for us, and we have been able to transition back to the office as restrictions have eased. In addition to this, there is a deficit of skilled employees particularly outside
Our professional and innovative employees have enabled the growth and development of our company. We operate in eight countries and had 191 employees at the end of the financial period. The response rate to our annual employee survey exceeded 80%. Based on the responses, our employees find their work tasks to be meaningful and their work communities to be healthy. The employees feel that they have the opportunity to impact the company’s goals and strategy through their own work. We can be very satisfied with these results. I would like to thank our employees for their professionalism and good service attitude. Together we form an incredible team.”
1 The views of the company’s management are based on Digital Workforce’s 2020 analysis of the competitive environment of intelligent automation and the relationship between Digital Workforce and its competitors. Other sources include the research company Forrester’s estimates and Forrester Wave Robotic Process Automation Q1 2021 (public sources).
Webcast news conference for investors and media
Registration to the webcast is requested beforehand at https://digitalworkforce.videosync.fi/q4-2021-results
This is a summary of Digital Workforce Services Plc’s Financial Statement Bulletin 2021. The complete report is attached to this release and available at: https://digitalworkforce.com/investors/releases/
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About Digital Workforce Services Oyj
About Digital Workforce
Digital Workforce is one of the leading service providers specialising in Robotic Process Automation (RPA) and Intelligent Automation (IA) on an industrial scale in terms of revenue, service offering, client references and head count. Digital Workforce helps its customers to automate knowledge work tasks and business processes with IA through its
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- Digital-Workforce-Financial-Statement-Bulletin-2021-ENG.pdf
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