BasWare - Interim report (Q1 and Q3)

Basware Interim Report January 1 - March 31, 2017 (IFRS)

Basware Corporation, stock exchange release, April 21, 2017 at 08:45

BASWARE INTERIM REPORT JANUARY 1 - MARCH 31, 2017 (IFRS)

SUMMARY

Strong cloud order intake in the first quarter

January-March 2017:

  * Net sales EUR 36 801 thousand (EUR 34 125 thousand): growth 7.8 percent
  * Cloud revenue growth of 28.8 percent, amounting to 50.3 percent (42.1 %) of
    net sales
  * Adjusted EBITDA EUR -1 602 thousand (EUR -517 thousand)
  * Adjusted operating result EUR -4 194 thousand (EUR -2 366 thousand)
  * Adjusted earnings per share (diluted) EUR -0.29 (-0.17)
  * Operating result EUR -5 092 thousand (EUR -2 716 thousand)
  * Earnings per share (diluted) EUR -0.37 (-0.21)

The Interim Report is unaudited.

Basware is targeting accelerated revenue growth during its strategy period
2017-2020. Basware's number one strategic priority is cloud revenue growth which
it will achieve by extending its leadership in networked purchase to pay,
growing its network and expanding value added services. For 2017, Basware
expects its cloud revenues to grow by approximately 20 percent, and adjusted
EBITDA at breakeven.

GROUP KEY FIGURES



                                  1-3/    1-3/ Change,   1-12/

 EUR thousand                     2017    2016       %    2016
---------------------------------------------------------------------


 Net sales                      36 801  34 125   7.8 % 148 580

 EBITDA                         -2 500    -867 188.2 %  -5 394

 Adjusted EBITDA                -1 602    -517 209.9 %   2 063

 Operating result               -5 092  -2 716  87.5 % -13 946

   % of net sales

 Adjusted operating result      -4 194  -2 366  77.3 %  -6 490

 Result before tax              -6 086  -3 773  61.3 % -16 256

 Result for the period          -5 380  -2 957  82.0 % -14 318



 Return on equity, %           -16.6 %  -8.5 %         -10.5 %

 Return on investment, %       -11.8 %  -6.9 %          -9.5 %

 Cash and cash equivalents      32 281  54 654 -40.9 %  35 755

 Gearing, %                      6.3 % -28.9 %           8.7 %

 Equity ratio, %                55.9 %  66.3 %          58.5 %



 Earnings per share

 Diluted, EUR                    -0.37   -0.21  78.4 %   -1.00

 Adjusted earnings per share,    -0.29   -0.17  74.9 %   -0.45
 diluted

 Equity per share, EUR            8.85    9.64  -8.2 %    9.26





BUSINESS OPERATIONS

Basware is the global leader in networked purchase-to-pay solutions, including
e-invoicing and financing services. Basware's commerce network connects
businesses in over 100 countries and territories around the globe. As the
largest open business network in the world, Basware provides scale and reach for
organizations of all sizes, enabling them to grow their business and unlock
value across their operations by simplifying and streamlining financial
processes. Small and large companies around the world achieve significant cost
savings, more flexible payment terms, greater efficiencies and closer
relationships with their suppliers.

CEO Vesa Tykkyläinen:

As both a shareholder and the CEO of Basware, I am pleased to report that
Basware made strong progress in the first quarter of 2017 towards its strategic
priority of cloud revenue growth. Cloud revenues grew well and Basware laid the
foundations for strong future cloud growth with a significant increase in
subscription annual recurring revenue order intake compared to the first quarter
of 2016.

At Basware, our mission is to help customers simplify operations and spend
smarter. We help customers make all their purchasing processes paperless and we
differentiate ourselves with the Basware Network, the largest e-invoicing
network in the world. There is a huge market opportunity for Basware's services,
worth EUR 15 billion annually in Europe and North America.

Basware won a number of significant new customers in the first quarter. A great
example of a large customer operating in multiple jurisdictions that was won in
the first quarter is Vinci Energies. It was also a strong quarter for order
intake in the US with Intertape Polymer Group being a good example of a win
there against the US competition. Other notable wins in the quarter included
Danske Bank and Falck.

Successfully delivering our solutions to customers is key to both customer
satisfaction and cloud revenue growth so I am pleased to be able to say that we
delivered twenty one SaaS deals in the first quarter of 2017 compared to twelve
in the first quarter of 2016.

Within cloud, Basware's SaaS revenues continued to be strong, more than doubling
compared to the first quarter of 2016. The Basware Network is a key
differentiator with customers as well as a huge data asset. It had its strongest
ever month in March with 10.7 million transactions processed and transaction
volume growth was 20 percent compared to the first quarter of 2016.

Since I became CEO of Basware some seven months ago, we have made significant
operational improvements. In the first quarter of 2017 we decided to combine
Basware's Network and Financing Services business areas in order to more
effectively use research and development resources and focus on getting the most
out of the data in our network. We have appointed a new SVP to head this team
who will begin in the second quarter of 2017. These changes come on top of the
initiatives begun already in the fourth quarter of 2016, including a
productivity programme, the combination of Customer Services and Professional
Services into a single unit, and the appointment of new sales heads in the US
and Germany. We have a clear plan which we have started to execute. It will take
time for the changes to be visible and we are only just beginning to see the
positive effects of these changes.

In the first quarter, we announced new share incentive plans that equate in
total to two percent of Basware's share capital. Not only will management
receive Basware shares as part of their compensation, but they will also commit
their own capital to buy Basware shares. As a result of these measures,
management is now even more aligned with shareholders' interests than it has
been in the past.

Basware is a global market leader as recognised by key industry analysts and
continues to win the trust of new customers. Combined with the actions we are
taking to further improve our operations, I am very confident that Basware is
well positioned to capture the huge market opportunity ahead of it.

FUTURE OUTLOOK

Operating environment and market outlook

All organisations need to manage their purchasing processes from procurement
through to handling invoices and paying them. Currently many organisations only
have unsophisticated or partial tools to manage these processes and as a result
many are faced with unmanaged spending, inefficient manual and paper-based
processes and poor visibility of cashflows. Basware offers a uniquely complete
solution for these challenges that is differentiated by the Basware network, the
largest e-invoicing network in the world, and enables customers to manage 100%
of their spending and make their purchasing processes completely paperless.

Basware expects the demand for networked purchase to pay services to continue to
grow. The total potential market for networked purchase to pay services is
estimated to be worth EUR 15 billion in annual revenues in Europe and North
America.

Outlook 2017

Basware's number one strategic priority is cloud revenue growth during its
strategy period 2017-2020 which it will achieve by extending its leadership in
networked purchase to pay, growing its network and expanding value added
services. For 2017, Basware expects its cloud revenues to grow by approximately
20 percent, and adjusted EBITDA at breakeven.

Espoo, Finland, Friday, April 21, 2017

BASWARE CORPORATION
Board of Directors

Vesa Tykkyläinen, CEO, Basware Corporation

For more information, please contact:

Niclas Rosenlew, CFO, Basware Corporation
Tel. +358 50 480 2160, niclas.rosenlew@basware.com

Distribution:
Nasdaq Helsinki
Key media
www.basware.com/investors


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Bifogade filer:

Basware Interim Report Q1/2017.pdf