UNIT4 Reports Successful H1 2011 Performance
19 august 201120110819
- Stronger than expected growth in SaaS revenues
- Increased total revenue and license sales
- Customers benefiting from new functionality, technologies, and flexible deployment options
Sliedrecht, The Netherlands – UNIT4, the world’s leading provider of business software for Businesses Living IN Change (BLINC™), today announced its financial results for the first half of 2011, reporting an increase in license sales and stronger than expected growth in SaaS/subscription revenues.
Over the past 12 months, UNIT4 has focused on delivering new product and deployment options for its Coda financial management and Agresso Enterprise Resource Planning (ERP) offerings to support customers in the public and private sectors as they manage rapid and continuous change. This differentiation has created new opportunities for UNIT4 in the first half of 2011 as companies demand independence combined with new levels of deployment agility.
“While traditional license sales continue to grow, we have seen very strong revenues from new SaaS and subscription models, representing a recognized shift in the way that software is being bought and consumed,” said Edwin van Leeuwen, CFO, UNIT4. “By offering customers a choice of software and deployment options, they are benefiting from reduced upfront investment in IT along with a flexible infrastructure that will grow and change with them. We remain positive about the full year outlook for 2011.”
Highlights for H1 2011 (compared to H1 2010):
- Total revenue increased by 13% to €225.9 million (USD$ 323.4m)
- License sales grew 22% to €36.3 million (USD$ 52m)
- SaaS/subscription revenues grew 53%
- Services revenues grew 12% to €80.5 million (USD $115.2m)
- FinancialForce.com reported enormous revenue growth and increased average deal size
- EBITDA increased by 7.3% to €38.0 million (USD $54.4m)
- Net profit (before goodwill) improved by 49% to €20.7 million (USD $29.6m)
Large deals were achieved in Norway (Oslo Commune >€2.5 million (>USD $3.6m) and a major construction company >€1.5 million (>USD $2.1m)), UK (Magnox >€2.5 million (>USD $3.6m)), the Netherlands (financial services >€ 1 million (>USD $1.4m)) and Poland.
Positive revenue growth in a number of countries exceeded market levels, namely Singapore (+85%), included in ROW, Sweden (+12%), Norway (+13%) and Poland (pro forma >40%).
Revenue grew by 13% in North America. With two main offices, on the west and east coasts, and a portfolio including both Agresso Business World and Coda products, a number of substantial and important orders were won including Raven Industries, STORE Capital, OANDA, USTravel and Vision 2000.
The Benelux (+4%) and United Kingdom (0%) stabilized in the first half year of 2011. In the United Kingdom revenue growth was flat primarily due to securing a number of large contracts in the first half of 2010, yielding a challenging comparison base.
The economic climate in Spain is still very poor and due to the fact that reorganization actions were taken in 2010 and 2011 the revenues declined by 11%. In Germany, a period of management reorganization resulted in a temporary revenue decline of 18%.
FinancialForce.com saw considerable growth in the period. The monthly revenue run rate in June 2011 grew almost 300% compared to June 2010. The acquisition of Appirio PS Enterprise (now FinancialForce PSA) at the end of 2010 has added significant value both in terms of revenue and the strategic direction of the company, contributing strongly to growth in new customers and the size of new deals.
UNIT4 has entered into an agreement to acquire Exie AS, a Norwegian software company known for its visionary and change embracing ‘people driven’ performance management solutions. The Exie solution will also be available integrated with Agresso Business World and Coda Financials. The deal, of total 50 million Norwegian Kroner (€6.4 million) (USD $ 9.2m), primarily consists of the product and the R&D department. The deal is financed from UNIT4’s own resources.
For a full copy of the H1 2011 results statement, please visit http://www.unit4.com/Investors/investornews
* USD rate calculated using exchange rate of 1.43160 (XE Universal Currency Converter)
UNIT4 is a global 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 world’s leading change embracing software brands including Agresso Business World, our flagship ERP suite for mid-sized services intensive organizations and Coda, our best-of-class financial management software.
With operations in 17 European countries, as well as 7 countries across North America, Asia Pacific and Africa and sales activities in several other countries, its revenue was €421.7 million in 2010.
UNIT4 is headquartered in Sliedrecht, the Netherlands and has over 4,000 employees. It is listed on Euronext Amsterdam and is included in the Amsterdam Midcap Index (AMX). For more information on UNIT4 or any of its operating companies, please visit the website at www.unit4.com, follow us on Twitter @UNIT4_Group or join us on Facebook at www.facebook.com/UNIT4BusinessSoftwareNV.
Tel: +44 (0)7810 657 778