- SaaS revenues continuing to increase
- Licence sales show growth
- Strong performance across UK, Norway, North America and Asia
Sliedrecht, The Netherlands, 16th August 2012 - UNIT4, the global business software group, today announced its financial results for the first half of 2012. The Group, which specialises in software for fast-changing organisations, reports a 20% increase in SaaS and Subscriptions revenues and a 5% growth in licence sales of which almost 3% was organic. There were especially strong performances across the UK, Norway, North America and Asia.
Product revenue for the first half year grew by 5% to 36 million with significant growth in Sweden (+23%), UK (+19%), North America (+25%) and Asia (>300%). The Benelux region also performed well with almost 5% product revenue growth and an especially strong performance in the healthcare business unit.
Contract revenues (maintenance and subscriptions) enjoyed healthy growth, rising by more than 8% to 118.2 million (H1 2011: 109.1 million). The share of contracts in total revenue increased to 51% (H1 2011: 49%).
Total revenues increased by 4% with most countries showing respectable organic growth. The exceptions were Spain, where reorganisations resulted in revenues below expectation, and Poland. During the first half of 2012, the Group made an adjustment to and restated its 2011 results due to a revenue recognition matter associated with historic transactions undertaken with partners in Poland[1]. Germany was flat in the first half year but has closed a large 6-year subscription deal with the State of Berlin which will contribute in the second half of 2012.
The strong growth experienced by FinancialForce.com in 2011 has accelerated in the first half of 2012. The monthly revenue run rate in June 2012 grew by more than 100% compared to June 2011.
Dedicated to creating, selling and supporting cloud applications on the Force.com platform the company is increasing subscriptions strongly and seeing the customer size and deal size growing rapidly. As demand for cloud applications continues to increase FinancialForce.com is recruiting rapidly both in North America and Europe to expand its sales and marketing capacity and cope with growing demand. In addition more partnerships being announced that expanded the functional capabilities and market reach of the FinancialForce solutions.
Highlights for first half of 2012 (against restated Half Year results for 2011) include:
Total revenue increased by 4% to 230.8 million (H1 2011: 222.0 million)
- Product (license) sales grew 5% to 36.0 million (H1 2011: 34.3 million)
- Recurring revenue (contracts & SaaS / subscriptions) increased by 8.3% to 118.2 million (H1 2011: 109.1 million)
- SaaS / subscription revenues grew 20.1% from 18.9 million to 22.7 million
- Services and other revenues decreased by 2.5% to 76.6 million (H1 2011:
78.6 million) - Cloud applications specialist FinancialForce.com grew strongly with monthly revenue run rate up more than 100%
- Personnel and other operating costs increased by more than 6% due to investments in sales and marketing which should support growth in the 2nd half of 2012 and beyond
- EBITDA rose by 3.1% to 37.0 million (H1 2011: 35.9 million)
- Excluding FinancialForce.com, EBITDA increased 4.3% to 40.9 million
(H1 2011: 39.2 million)
- Net profit before goodwill decreased by 19.9% to 15.3 million (H1 2011:
19.1 million) due to higher depreciation and revaluation of the interest swap.
Over the past twelve months we have continued to invest in our solutions portfolio as well as our sales and marketing efforts and are encouraged to see that on-going investment paying dividends. With UNIT4 customers can select software solutions that meet their business and financial needs today while also delivering that all important flexibility and agility in this ever changing trading environment. Our performance, the growth in traditional licence sales as well as the strong revenues generated from our SaaS and subscription based offerings underpins our strategy to offer customers a choice when it comes to how their solutions are deployed and managed, said Edwin van Leeuwen, CFO, UNIT4. Looking forward, and based on the current estimates and pipeline, we maintain our previously communicated target of single digit growth in both revenue and EBITDA for the full year 2012.
For a full copy of the H1 2012 results statement, please visit: http://unit4.bz/cZVEd
[1] These transactions were made prior to UNIT4s acquisition of Teta and are believed to have been conducted under standard Polish business practices but are deemed not to be in the best interest of UNIT4. The adjustment to the 2011 results has been made, legal advice is being sought, the H1 2012 results are unaffected and no on-going impact is expected.
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About UNIT4
UNIT4 is a global cloud-focused business software and services company aimed at helping dynamic public sector and commercial services organizations to embrace change simply, quickly and cost effectively in a market sector it calls 'Businesses Living IN Change' (BLINC). The Group incorporates a number of the worlds leading change embracing software brands including Agresso Business World, our flagship ERP suite for mid-sized services intensive organizations; Coda, our best-of-class financial management software; and FinancialForce.com, the cloud applications company formed with investment from salesforce.com.
With operations in 24 countries, across Europe, North America, Asia Pacific and Africa, revenue of 454.7 million was realized in 2011.
In the UK we focus strongly on the public sector, where we are the leading provider of ERP systems to local government and post 16 education organisations, as well as having a considerable presence in the emergency services and health sectors. We also focus strongly on professional services organisations and a range of commercial sectors including Financial Services, Retail and Media and Publishing. Overall we aim to be the UKs foremost business software company, providing solutions that transform the delivery of public services and comprehensively support commercial organisations in their ability to adapt and prosper in rapidly changing environments.
UNIT4 is headquartered in Sliedrecht, the Netherlands and has over 4,000 employees. It is listed on Euronext Amsterdam by NYSE Euronext and is included in the Amsterdam Midcap Index (AMX).
For more information on UNIT4 or any of its operating companies, please follow us on Twitter @UNIT4_Group, visit our Facebook page http://www.facebook.com/UNIT4BusinessSoftwareNV, visit the website at www.unit4.com
