Q2 2025 FormPipe Software AB Earnings Call Transcript
Key Points
- Formpipe Software AB (LTS:0M8Y) reported an increase in net sales to SEK140 million, up from SEK132 million in the same quarter last year.
- The company achieved an EBIT of SEK12 million, showing progress in margin improvement despite currency headwinds.
- Recurring revenue remains strong, covering more than 105% of fixed operating costs, providing stability.
- The Lasernet business continues to perform well, particularly within the Dynamics ecosystem, with a presence in 60 countries and over 1,000 customers.
- The divestment of the public division is expected to allow Formpipe Software AB (LTS:0M8Y) to focus resources and investments on the Lasernet business, enhancing growth potential.
- The bank and finance sector showed weaker performance this quarter compared to previous periods.
- The company incurred SEK10 million in one-off costs related to the divestment, with additional costs expected in Q3.
- The Landbrugsstyrelsen contract was lost to another supplier, impacting potential growth and margins.
- Denmark's performance was weaker compared to Sweden, indicating regional disparities in business performance.
- Lasernet's growth of 7% was below expectations, particularly due to slow development in the bank and finance sector.
Welcome to the Q2 Formpipe Live Q. And in addition to the quarter, we will, of course, also talk about the intended divestment of the public division. There's an opportunity to ask questions below the stream. I will be back later to moderate the Q&A session. Today, I'm joined by CEO, Magnus Svenningson; and CFO, Sophie Reinius. But now it's time for you, Magnus to present. Welcome.
Thank you very much, Fredrik. And hi, everyone. Really good to be here to present our second quarter 2025, which we have named Divestment and Margin Improvement. And we will, of course, talk about the divestment. But first, a little bit of a highlight from the second quarter.
And net sales came in at SEK140 million compared to SEK132 million last quarter -- last year. And again, we continue with our high level of recurring revenues. The ACV is on a stable, I would say, SEK6 million level. We had very good momentum in our bank and finance business last year and this quarter has been weaker
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