BIMobject AB: Interim report July - September 2020
November 13, 2020
This press release features multimedia. View the full release here: https://mfn.se/a/bimobject/bimobject-ab-interim-report-july-september-2020
- Net sales of MSEK 33.6 (35.8), -6%.
- Platform net sales of MSEK 26.1 (22.0), +19%.
- EBITDA of MSEK -7.0 (-23.1), corresponding to an EBITDA margin of -21% (-64%).
- Basic earnings per share amounted to SEK -0.08 (-0.19).
- Group cash flow* from operating activities of MSEK -9.3 (-33.3).
- The accumulated number of users in thousands increased by 28% to approximately 2,127 (1,667).
- The accumulated number of downloads amounted to 66.5 million (44.5).
- The number of brands amounted to 1,965 (1,615).
* Current investments have after a change in assessment been separated from cash and cash equivalents in the cash flow statement. All key ratios have been restated.
Significant events during the period
- Directed share issue of MSEK 304 to a group of Nordic and European institutional investors.
- Christophe Carvenius was appointed Chief Product Officer. Ben O'Donnell and Åsa Gylling Hallén left the management team.
Significant events after the end of the period
No significant events to report.
Analysts, investors and the media are invited to participate in the presentation at 14.00 CET November 13 2020.
Dial-in numbers: SE: +46 8 5055 8355, UK: +44 3333 009261, US: +1 833 2498406
The complete report is available on the company’s website (investors.bimobject.com)
“Sticking to our plan”
In a tough global macro environment, we keep executing on our plan to build a great, global SaaS company.
With political and economical turbulence in many of our main markets, we keep our head down and focus on the task at hand. We’re committed to building a global marketplace for the construction industry, connecting building designers and other AECO (Architecture, Engineering, Construction and Owners) stakeholders worldwide with building product manufacturers.
The themes for this year have been to 1) build an attractive platform, 2) strengthen commercial execution and 3) to return the company to a strong financial position. In the third quarter, we kept making strong progress on all these fronts despite economic headwinds.
An attractive platform that keeps growing
Revenues for our Platform business grew by 19% to MSEK 26.1. In October, a product was downloaded every second, 24x7, on bimobject.com - a record fuelled by both accelerated digitalisation of our industry and large improvements to our product search experience. Other KPIs, such as new user registrations and monthly active users also developed favorably.
In the quarter, we continued the rollout of our new pricing model to new and existing customers. As most customers are on annual contracts, it’s an ongoing effort where many renewals take place late Q4 and early Q1. We are confident in the increasing value of our platform - through user growth, ongoing product innovation and a systematic commitment to customer success.
On the product side, we kept improving core functionality such as the bimobject.com end user experience and Insights, the analytics module for customers. This quarter we also launched a new feature for on-platform promotions, Promoted Products, which allows customers to pay to rank at the top of search results in a certain product category and market.
Strong financial position - continued commercial transformation
Financially, BIMobject is now in a very strong position. With the directed share issue carried out in the quarter, we now have over MSEK 400 in cash and short-term investments, as well as a strong, institutional investor base. The cost reduction program initiated in Q2, targeting a cost reduction of MSEK 50 compared to 2019, is on track and we are confident in reaching our goal.
As for our commercial transformation, a new European Customer Success Team is now in place in Malmö, as well as a regional Prospecting Team of sales development representatives building a pipeline with support from digital marketing. This allows us to operate at scale and build deeper excellence in these key functions. We are also rolling out a new brand identity and redesigned websites in Q4.
Still there are areas we need to keep addressing - we are not satisfied with the sales performance in some European countries, there are local hotspots of churn and our sales of Services are not performing satisfactorily.
Macro uncertainty clouding Q4 visibility
At the outset of the year, the company set three goals for 2020- to achieve 40% growth in annual recurring revenue, an increase of 500 manufacturers (now referred to as brands) and a strong increase in the number of users.
While we have clearly delivered on the user goal, it is also clear that given the resurgence of COVID-19 in Europe and USA, customer sentiment will be muted in our most important quarter of the year. This will make it very hard to reach the ARR and brand growth goals for 2020. On the other hand, it also fortifies the long-term value of the platform, as virtually all physical trade shows are now cancelled.
Regardless of how the economic turbulence plays out these final weeks of 2020, our ambitions remain high, and we won’t rest until we reach them. Construction and buildings still account for 40% of energy and process-related CO2 emissions, and our world still urgently needs BIM in order to build smarter and greener.