Q3 2024 FormPipe Software AB Earnings Call Transcript
Key Points
- Formpipe Software AB (OSTO:FPIP) reported net sales of 130 million, reflecting a positive adjustment in customer mix.
- Recurring revenue now constitutes more than 80% of net sales, indicating a stable and predictable revenue stream.
- The company has secured new contracts, including extensions in the Danish municipalities and Swedish defense sector, showcasing strong client relationships.
- There is a clear positive uptick in underlying profitability, with a 30% growth in the source line contributing significantly to recurring revenue.
- Formpipe Software AB (OSTO:FPIP) has launched a new product packaging strategy for its LaserNet business, which is expected to facilitate customer growth and increase ticket sizes over time.
- The company experienced a cyber attack, although it was contained to internal servers with no external data leakage.
- The ACV for the quarter was negatively impacted by a currency effect of 4 million, resulting in a net ACV of 7 million, which is considered low.
- There were organizational changes in the public sector, leading to one-off costs of 6 million impacting profitability.
- The delivery line revenue is still 2.5 million lower than last year due to changes in agreements and vacation periods.
- The company is facing churn in its Swedish municipalities and has ended the life of its Plot in Life Science product, which may affect future revenue streams.
Welcome to this live queue with FormPipe. I will be back later for the Q&A session and you can already now post your questions below the stream.
And today I'm joined by CEO Magnus Svenningson, so, and CFO Joakim Alfredson. So and Magnus, I think you will start the presentation, right? Yes, You're welcome.
We do as we always do it. Then we have you Joaquim coming in with some numbers. Then I talk a little bit more about the developments and then the Q&A and if we and of course, really good to be here and see you again after three months of doing business and also having a bit of vacation and summer before starting off of the new season. So if we look a little bit at the numbers, first of all, we have the net sales 130 million. I think this is a good number. Given our changes in opera in customer mix the last year. Also, I would like to emphasize the recurring revenue. We are now up to more than 80% of our net sales be recurring revenue. And I think this is a really good sign of, of form pipe
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