SIMCORP Company Announcement no. 37/2022
Q3 2022 highlights- Revenue was
EUR 124.2m , an increase of 15.7% compared with Q3 2021. -
EBIT was
EUR 20.2m (EUR 24.2m in Q3 2021) and the EBIT margin was 16.2% (22.6% in Q3 2021). Q3 2022 was impacted by extra cost of EUR 0.8m to help and support our Ukrainian colleagues and their families. -
Net profit was
EUR 18.3m (EUR 20.0m in Q3 2021). -
Total order intake was
EUR 22.9m (EUR 27.8m in Q3 2021), due to lower order intake of data management solutions. -
First new SimCorp Dimension clients signed in
Africa and Malaysia . -
Strategic agreement signed with existing client in
Europe , adding front office, risk, alternative investments and ESG to their SimCorp platform. Front office deal signed with existing client in North America .
9M 2022 highlights- Annual Recurring Revenue (ARR) for the last twelve months (LTM) was
EUR 309.9m , an increase of 15.2% when compared with the period Q4 2020-Q3 2021. ARR for the last twelve months was equivalent to 60.2% of reported revenue for the last twelve months compared with 55.7% for the equivalent period Q4 2020 to Q3 2021. -
Revenue was
EUR 354.9m , an increase of 5.6% compared with 9M 2021. SaaS revenue increased by more than 30%. -
One-off consultancy and redundancy costs of
EUR 5.7m were incurred in 9M 2022 to ensure that SimCorp has the right structure and people as it transforms to a SaaS company. Exceptional costs of EUR 2.9m were incurred in 9M 2022 to support our Ukrainian colleagues and their families. Excluding these exceptional and one-off costs of EUR 8.6m , the operating costs increased by 18.1% (15.3% in local currencies) compared with 9M 2021, which was as expected. -
EBIT was
EUR 41.9m (EUR 78.1m in 9M 2021) and the EBIT margin was 11.8% (23.2% in 9M 2021). The lower EBIT and EBIT margin were primarily due to lower license revenue in Q2, exceptional and one-off costs incurred, and investments in the future in support of continued investments, including in new SaaS operations and solutions. Excluding exceptional and one-off costs incurred (as mentioned above) of EUR 8.6m , the EBIT margin would have been 14.2%. -
Net profit was
EUR 40.9m (EUR 61.5m in 9M 2021). -
Order intake was
EUR 65.9m (EUR 70.6m in 9M 2021), due to lower order intake of data management solutions, while order intake of licenses was higher than in 9M 2021. -
At
September 30, 2022 , the order book amounted to EUR 84.3m , an increase of EUR 23.8m when compared with the order book at September 30, 2021 , and an increase of EUR 11.3m when compared with the order book at December 31, 2021 . -
Free cash flow was
EUR 44.7m compared with EUR 79.8m in 9M 2021, due to lower profit and timing of payments.
Subsequent events- Capital Market Day held in
October 2022 with more than 100 physical and virtual participants. -
Since the end of Q3, 2022,
SimCorp has signed a new SimCorp Dimension client in North America .
Financial guidance 2022- The pipeline is strong, however clients have become more cautious making decisions in the current macroeconomic climate. Consequently,
SimCorp expects to be at the lower end of the guidance ranges for 2022 which were announced in the 2021 Annual Report. This means that, for 2022 we now expect to grow revenue in local currencies at the lower end of the range 7% - 12%, to grow Annual Recurring Revenue (ARR) for the last twelve months (LTM) in local currencies at the lower end of the range 10% - 15%, and to generate an EBIT margin measured in local currencies at the lower end of the range 23.0% - 26.0%. The EBIT margin guidance excludes the effect of expected 2022 exceptional costs of EUR 3-5m in relation to supporting our Ukrainian employees and their families, and excludes the effect of expected one-off costs of EUR 8-10m relating to the operating model restructuring programme.
- Annual Recurring Revenue (ARR) for the last twelve months (LTM) was
EUR 309.9m , an increase of 15.2% when compared with the period Q4 2020-Q3 2021. ARR for the last twelve months was equivalent to 60.2% of reported revenue for the last twelve months compared with 55.7% for the equivalent period Q4 2020 to Q3 2021. -
Revenue was
EUR 354.9m , an increase of 5.6% compared with 9M 2021. SaaS revenue increased by more than 30%. -
One-off consultancy and redundancy costs of
EUR 5.7m were incurred in 9M 2022 to ensure thatSimCorp has the right structure and people as it transforms to a SaaS company. Exceptional costs ofEUR 2.9m were incurred in 9M 2022 to support our Ukrainian colleagues and their families. Excluding these exceptional and one-off costs ofEUR 8.6m , the operating costs increased by 18.1% (15.3% in local currencies) compared with 9M 2021, which was as expected. -
EBIT was
EUR 41.9m (EUR 78.1m in 9M 2021) and the EBIT margin was 11.8% (23.2% in 9M 2021). The lower EBIT and EBIT margin were primarily due to lower license revenue in Q2, exceptional and one-off costs incurred, and investments in the future in support of continued investments, including in new SaaS operations and solutions. Excluding exceptional and one-off costs incurred (as mentioned above) ofEUR 8.6m , the EBIT margin would have been 14.2%. -
Net profit was
EUR 40.9m (EUR 61.5m in 9M 2021). -
Order intake was
EUR 65.9m (EUR 70.6m in 9M 2021), due to lower order intake of data management solutions, while order intake of licenses was higher than in 9M 2021. -
At
September 30, 2022 , the order book amounted toEUR 84.3m , an increase ofEUR 23.8m when compared with the order book atSeptember 30, 2021 , and an increase ofEUR 11.3m when compared with the order book atDecember 31, 2021 . -
Free cash flow was
EUR 44.7m compared withEUR 79.8m in 9M 2021, due to lower profit and timing of payments.
Subsequent events- Capital Market Day held in
October 2022 with more than 100 physical and virtual participants. -
Since the end of Q3, 2022,
SimCorp has signed a new SimCorp Dimension client in North America .
Financial guidance 2022- The pipeline is strong, however clients have become more cautious making decisions in the current macroeconomic climate. Consequently,
SimCorp expects to be at the lower end of the guidance ranges for 2022 which were announced in the 2021 Annual Report. This means that, for 2022 we now expect to grow revenue in local currencies at the lower end of the range 7% - 12%, to grow Annual Recurring Revenue (ARR) for the last twelve months (LTM) in local currencies at the lower end of the range 10% - 15%, and to generate an EBIT margin measured in local currencies at the lower end of the range 23.0% - 26.0%. The EBIT margin guidance excludes the effect of expected 2022 exceptional costs of EUR 3-5m in relation to supporting our Ukrainian employees and their families, and excludes the effect of expected one-off costs of EUR 8-10m relating to the operating model restructuring programme.
- The pipeline is strong, however clients have become more cautious making decisions in the current macroeconomic climate. Consequently,
SimCorp expects to be at the lower end of the guidance ranges for 2022 which were announced in the 2021 Annual Report. This means that, for 2022 we now expect to grow revenue in local currencies at the lower end of the range 7% - 12%, to grow Annual Recurring Revenue (ARR) for the last twelve months (LTM) in local currencies at the lower end of the range 10% - 15%, and to generate an EBIT margin measured in local currencies at the lower end of the range 23.0% - 26.0%. The EBIT margin guidance excludes the effect of expected 2022 exceptional costs ofEUR 3-5m in relation to supporting our Ukrainian employees and their families, and excludes the effect of expected one-off costs ofEUR 8-10m relating to the operating model restructuring programme.
During the quarter, we have unfortunately seen escalation of the war in
Investor presentation
At the end of the presentation there will be a Q&A session.
The presentation will be available prior to the conference call via
Webcast details
It will be possible to follow the presentation via this link:
https://edge.media-server.com/mmc/p/7sea2xbu
Telephone conference registration
Participants are required to register in advance of the conference using the link provided below. Upon registering, each participant will be provided with Participant Dial In Numbers, and a unique Personal PIN.
Online registration: https://register.vevent.com/register/BIf88a92e60a244713b62e3394f14f81aaEnquiries regarding this announcement should be addressed to
Investor contacts
Christian Kromann , Chief Executive Officer, SimCorp A/S (+45 3544 8800, +45 2810 9090)
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)
Investor contacts
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)
https://news.cision.com/simcorp/r/company-announcement,c3667082
https://mb.cision.com/Main/20103/3667082/1670149.pdf
(c) 2022 Cision. All rights reserved., source
