BIMobject AB: Interim report January - March 2021
May 04, 2021
This press release features multimedia. View the full release here: https://mfn.se/a/bimobject/bimobject-ab-interim-report-january-march-2021
First quarter: Jan - Mar 2021
- Net sales of MSEK 28.5 (35.8), -21%. Platform net sales of MSEK 24.4 (23.8), +3%.
- ARR in constant currencies* amounted to MSEK 95.8 (83.6), +15%, at the end of the reporting period.
- EBIT of MSEK -17.6 (-25.7), corresponding to an EBIT margin of -62% (-72%).
- Basic earnings per share amounted to SEK -0.09 (-0.22).
- Group cash flow from operating activities of MSEK -12.1 (-13.6).
* Starting this quarter, the ARR metric has been redefined to better reflect the company’s underlying development. For more information, please see the section “Definitions” in the interim report.
Significant events during the period
BIMobject announces that its CFO, Alexander Dahlquist, will leave the company.
Significant events after the end of the period
Martin Lindh appointed Chief Financial Officer, starting 17 May 2021.
Analysts, investors and the media are invited to participate in the presentation at 14.00 CEST 4 May 2021.
The complete report is available on the company’s website, investors.bimobject.com.
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Turning the corner.
After a year of turnaround, we have laid down the tracks for growth.
For over a year now, my team and I have worked around the clock to turn BIMobject back into sustainable, profitable growth. On a rolling 12 month comparison, we have cut operating costs by 75 MSEK in just one year and completely transformed our entire organisation.
Still, I understand the frustration of shareholders that would have liked to see growth already this quarter. We can deliver predictable, sustainable growth and we will. The tracks have been laid, but execution takes time.
Strong customer acquisition
Q1 saw strong progress in our commercial execution. New sales meetings rose to record highs, powered by our new digital and lean go-to-market strategy. This in turn drove new customer acquisition and made February and March some of our strongest sales months on record.
In January, David Kullander, previously Chief Marketing Officer, was promoted to Chief Revenue Officer. David has already recruited a new sales leadership team with strong SaaS industry experience and started scaling up the sales team in markets where we see traction.
Making sense of our numbers
To separate our commercial development from our reported numbers, there are quite a few things I want to detail:
- Total revenue declined 21% year-over-year because of a sharp decline in Services revenue. COVID-19 muted order inflow during 2020, and we are currently low on backlog even though sales are bouncing back.
- Platform revenue continued to grow 3% year-over-year but declined sequentially. This is explained by the expiration of USD 1 million in guaranteed annual license revenues from our Japanese joint venture, which were partially offset by USD 500,000 in annual license revenues from our newly established joint venture in Thailand and continued revenue sharing in Japan.
- Our underlying annual recurring revenue grew 15% year-over-year but was flat sequentially. In the quarter, we were able to increase prices with a large share of our customers, and address the situation with delayed renewals from Q4. Regrettably, this was offset by COVID-19-related Premium downgrades in North America and churn related to our French subsidiary that we reorganised in the fourth quarter.
Leveling up our offering
With new customer sales bouncing back, a key priority is now account expansion. To continue to grow our revenue per account, we need to continue developing our value proposition to building product manufacturers to capture more of their marketing spend.
In the quarter, we have launched the first version of a new, completely redesigned bimobject.com which has received strong ratings from the users. We also made major improvements to other parts of our offering, such as launching a smarter and easier-to-use Company Admin console and a whole range of improvements to Insights, our business analytics platform.
There is a massive opportunity for innovation, both in BIMobject’s offering and in our industry as a whole, and those are the tracks we are laying down next.
And we’re not alone - in February, the US National Institute of Building Sciences announced a new National BIM Program with the goal to create a shared set of standards to accelerate innovation and increase sustainability in the American construction industry.