Ad hoc announcement pursuant to article 53 LR
The continued conversion of the license model to a SaaS (Software as a Service)/hosting model as well as greater levels of investment has changed the structure of total sales and reduced profitability in the first half of 2021/2022. Due to the successful implementation of the strategy to become a SaaS provider, sales and profit will stabilise at a higher level in the medium term.
CREALOGIX is reporting the following provisional results:
- At CHF 45.4 million, sales were down to 13.7% on the previous year (CHF 52.6 million).
- The proportion of recurring sales now amount to 56% of total sales (compared to 50% in the previous year).
- SaaS/hosting sales rose 8% compared to the previous year and now amount to 32% of total sales.
- New customer acquisition was hampered due to severe travel restrictions in all regions and thus curbed the growth targets.
- In addition to converting the license model, the required transfer of service revenue to implementation partners and the delayed sales of payment devices all contributed to the drop in sales.
- EBITDA amounts to CHF -3.8 million (previous year: CHF 1.2 million).
- The sharp increase in product investment (30% of revenue compared to 18% in the previous year) had an adverse effect on profitability. However, it did contribute to successful ‘Go-Lives’ of new clients and solutions, such as development banks in Germany, for example.
- The drop in sales volumes had an adverse effect on EBITDA too, which nevertheless could not be completely offset by additional savings in costs.
CREALOGIX is confident that both higher sales volume and better profitability compared to the first half is achievable in the second half of 2021/2022. CREALOGIX will continue to consistently implement the SaaS provider strategy and, in the medium term, will continue to strive for profitability in the double-digit range, measured by the EBITDA margin.
The full half-year results for 2021/2022 will be published on 15 March 2022.