Growth momentum for digitising SMEs enhances – double digit top line growth
La Hulpe,
Highlights
- 9M 2022 Group revenue grew by 13.6% y/y to €135.7 million
- Digital processing revenue grew by more than 16.4% y/y to €88.6 million, with recurring digital processing revenue up 20% The organic growth of digital processing revenue for 9M 2022 was 13.8%
- Strong customer growth of 24.5% compared since the start of the FY 2022
- Growth rates in digital business increasingly supported by European government’s decisions
Commenting on the business update, Hans Leybaert, CEO and founder stated: “We are pleased that the roll-out of our platform is leading to an increased adoption by local entrepreneurs and business owners throughout
Key financial figures
(EUR million) | Q3 2022 | YTD Q3 2022 | YTD Q3 2021 | Change (%) |
Digital processing revenue | 29.3 | 88.6 | 76.1 | +16.4% |
Recurring digital processing revenue | 27.1 | 83.4 | 69.5 | +20.0% |
Non-recurring digital revenue | 2.2 | 5.2 | 6.6 | -21.2% |
Postage & parcel optimisation revenue | 14.7 | 47.1 | 43.4 | +8.5% |
Group revenue | 44.0 | 135.7 | 119.5 | +13.6% |
Key business KPI’s
(#) | End Q3 2022 | End Q2 2022 | End Q1 2022 | End Q4 2021 |
Customers | 986,971 | 910,845 | 857,313 | 792,594 |
Paying customers | 453,417 | 430,524 | 402,494 | 368,277 |
Customers paid by 3rd parties | 533,554 | 480,321 | 454,819 | 424.317 |
Companies in business network | 2,023,460 | 1,745,401 | 1,615,062 | 1,504,895 |
Banqup customers | 80,420 | 68,546 | 56,000 | 35,408 |
Organic growth (new subscriptions) | 3,928 | 5,529 | 5,197 | 4,855 |
Migrated | 7,847 | 7,116 | 15,395 | - |
Banqup customers | 37,459 | 35,382 | 31,884 | 28,864 |
Banqup customers | 4,087 | 3,591 | 2,844 | 2,072 |
Double-digit growth rates in digital processing business
Growth digital processing mainly driven by organic growth
The Group saw its revenue from digital processing increasing by 16.4% y/y to €88.6 in the first three quarters. 13.8% of the growth was organic. This was mainly driven by the strong growth rate of 20.0% y/y in recurring digital revenue, i.e. digital platform revenue excluding the project and licence business. The growth is spread over different countries and markets, with the Nordic countries,
The project and licence business, which is non-recurring, contributed €5.2 million (9M 2021: €6.6m). Because of the guidelines around digital invoicing that are being introduced in more and more European countries, there is an increasing demand from governments for a portal that enables the continuous real-time monitoring of each invoice. This will have a positive impact on the growth that
96.2% of the total group revenue results from recurring services, in line with Q2 2022.
Sound growth in postage & parcel optimisation business
Group revenue was also supported by robust growth in postage and parcel optimisation services, + 8.5% y/y in 9M 2022 to €47.1 million.
Customer base grew strongly with improved momentum
The total number of Banqup customers more than doubled since the beginning of FY 2021: from 35,408 YE 2021 to 80,420 at the end of Q3 2022. Banqup is Unifiedpost’s core SME-product allowing customers to create and send sales invoices, keep an overview of all (financial) documents and manage administration. The platform also offers a unique, inhouse developed payment functionality. The customer growth over the last three months includes migration effects from legacy platforms. Adjusting for such migrated users, the number of Banqup users increased by 14,654 in the first nine months of 2022.
Within the French market,
The overall average revenue per unit (ARPU) in digital processing business1 reached €21.7. The decline in ARPU compared to FY2021 (€27.9) is predominantly due to two effects. The first one is a negative effect from the last quarter as that includes the licence revenue resulting from the project with the Serbian Government. The second one results from the significantly higher and increasing revenue contribution from Unifiedpost’s SME business with a structurally lower ARPU.
Positive cash flow expected for H2 2023
Due to the changed economic circumstances and business conditions, the Company has made the target to become cash flow positive its predominant priority. The target remains to be cash flow positive for H2 2023.
Investors & Media webcast
Management will host a live video webcast for analysts, investors and media today at
A recording will be available shortly after the event. To attend, please register at https://onlinexperiences.com/Launch/QReg/ShowUUID=9B0FAE98-BFBC-42EE-87D6-60C47EAD9555. Participants can also join via telephone. They can obtain their personal dial-in details by registering with this link: https://registrations.events/direct/NTE60150.
A full replay be available after the webcast at: https://www.unifiedpost.com/en/investor-relations
Financial Calendar 2022
- 30 November 2022 Investor Day
Investor Relations & Media
+32 491 15 05 09
sarah.heuninck@unifiedpost.com
About
Noteworthy facts and figures:
- Established in 2001, with a proven track record
- 2021 turnover €171 million
- 1400+ employees
- Diverse portfolio of clients across a wide variety of industries (banking, leasing, utilities, media, telecommunications, travel, social security service providers, public organisations, etc.) ranging from large internationals to SMEs
- Unifiedpost Payments, a fully owned subsidiary, is recognised as a payment institution by the
National Bank of Belgium - Certified Swift partner
- International M&A track record
- Listed on the regulated market of Euronext Brussels, symbol: UPG
(*) Warning about future statements: The statements contained herein may contain forecasts, future expectations, opinions and other future-oriented statements concerning the expected further performance of
1 Revenue in digital processing revenue divided by number of paying customers at the end of the relevant period.
© OMX, source