Q1 2025 FormPipe Software AB Earnings Call Transcript
Key Points
- Formpipe Software AB (OSTO:FPIP) reported a significant increase in net sales, reaching SEK139 million, up from the previous year's SEK25 million.
- Recurring revenues now constitute more than 80% of total revenues, showcasing the stability and quality of the company's business model.
- The company achieved a substantial improvement in EBIT, rising from SEK4 million to SEK30 million, excluding one-offs, due to effective cost reductions.
- The Lasernet division secured 19 new deals, highlighting its growth, particularly with notable clients like Caterpillar and Metcash.
- Formpipe Software AB (OSTO:FPIP) has successfully initiated cost-saving measures, leading to a notable improvement in EBITDA margin from 17% to 21.6% year-over-year.
- The 'Back to Finance' initiative brought in only two banks this quarter, which was slower than expected.
- The company faced a negative impact on ARR due to currency fluctuations, resulting in a SEK19 million decrease.
- There were one-off restructuring costs of approximately SEK8 million, primarily affecting the Lasernet and public business areas.
- The company is still in the early stages of learning from its new premium business model, making it too soon to gauge its long-term effectiveness.
- Despite improvements, the company acknowledges the need for continued cost control and strategic investments to maintain growth and profitability.
Welcome to the Q1 presentation with FormPipe.
(Operator Instructions)
Today I'm joined by CEO Magnus Svenningson and CFO Sophie Reinius, and Magnus, the floor is yours.
Thank you very much, Friedrich, and Hello to everyone listening in. It's great to be here at RedEye to present the First Quarter of 2025.
And as you see in the headline, we have had a good quarter with improvement on all lines. So, what do we mean by that? So, first of all the net sales coming in at SEK139 million, which is an improvement from last year's 25.
And again, I just want to highlight our recurring revenues that is now more than 80% of our revenues, which is a good quality of our company and our business model and then we have the ACV, which is strong, and This has to do with good performance in our listen business as well as in our public business.
And from an EBIT perspective, we are up from SEK 4 million to SEK30 million on excluding one-offs, and this is thanks to good work with cost
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
