BIMobject AB: Interim report April - June 2021
August 06, 2021
This press release features multimedia. View the full release here: https://mfn.se/a/bimobject/bimobject-ab-interim-report-april-june-2021
Second quarter financial highlights
- ARR in constant currencies of MSEK 97.4 (88.3) at end of quarter, +10%.
- Net sales of MSEK 30.3 (34.8), -13%, affected by lower volumes in Services and currency effects.
- Net sales from recurring revenue of MSEK 23.0 (23.8), -3%, representing 76% of total net sales.
- Operating earnings (EBIT) of MSEK -28.2 (-17.0). Adjusted for the Long Term Incentive Program 2021, EBIT amounted to MSEK -20.1.
- Basic earnings per share amounted to SEK -0.21 (-0.16).
- Group cash flow from operating activities of MSEK -27.3 (-4.2).
- Currency effects negatively impacted net sales year-over-year by -10% while being almost negligible when comparing quarter-over-quarter.
Significant events during the quarter
- Martin Lindh was appointed Chief Financial Officer.
- Strong participation in the “Long Term Incentive Program 2021”, in which employees invested MSEK 6 in warrants.
Significant events after the quarter
- 100,000 published product pages on bimobject.com.
Analysts, investors, and the media are invited to participate in the presentation at 14.00 CEST on 6 August 2021 via https://financialhearings.com/event/13747.
The complete report is available on the company’s website, investors.bimobject.com.
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Back to growth mode.
The cogwheels are starting to connect in our new growth engine.
In the second quarter of 2021, pipeline, sales and revenue retention all improved over the first quarter. This provides concrete evidence that our growth model works, and supports continued investments in our future.
Another record quarter in user activity at bimobject.com
It’s nothing new, but it’s worth repeating: bimobject.com is on an incredible growth trajectory. In May, we passed 2.5 million registered users, less than a year after passing the 2 million mark. In addition, April and May were two consecutive record download months, with nearly 3 million downloads in each month. Finally, in July, just after the end of the quarter, we reached 100,000 published product pages on bimobject.com.
This quarter, we continued to develop and optimise the new, completely redesigned version of bimobject.com. The platform is already live in selected countries, and we are looking forward to a global launch planned for the third quarter.
Strong improvements in our commercial execution
In the second quarter, many of the positive trends from the first quarter continued - strong new customer sales and even stronger generation of new business opportunities, creating a growing pipeline. Based on these trends, we have continued to grow our prospecting team in the quarter. In North America, we have also expanded the sales team.
However, this quarter’s most important improvement was in our existing business, where net revenue retention improved month-over-month in the quarter. We see this as a direct effect of the tactical changes our Customer Success team has implemented.
Sales of Services (BIM file development for our customers) also improved in the quarter. The business has now reached break-even at the operating level, and there is still a lot of room for additional commercial optimisation to increase sales and margins. In North America, we recently started selling content-maintenance-as-a-service. Early indications are very positive - our customers appreciate having us as a specialist develop and maintain all their BIM content, especially with the added value of predictable costs. In addition to generating incremental revenue, this service helps us strengthen customer relationships while at the same time ensuring that our users have access to updated, high-quality BIM files.
Investing in our future
In the second quarter, two important long term initiatives were launched:
- Through the Long Term Incentive Program 2021, we have created a strong incentive program that helps us retain key personnel by rewarding staying with the company and contributing to its long-term growth.
- We’ve also launched a comprehensive sales excellence programme, which will give our sales team a shared, modern foundation for efficient virtual sales and help us scale our organisation faster.
While these initiatives have impacted our short-term profitability, I’m convinced the timing is right: they are attractive investments for our shareholders as they help us create a stronger foundation for our future growth.