SignUp Software AB (publ) Interim Report July – September 2022
Annual recurring revenue (ARR) grew by SEK 16.3m corresponding to 7.2 percent from the end of Q2 2022.
July - September 2022
- Annual recurring revenue (ARR) grew by
- SEK 16.3m, 7.2 %, from the end of Q2 2022, and by
- SEK 67.6m, 38.9 %, in the last 12 months.
- At the end of Q3, ARR amounted to SEK 241.2m (173.6).
- Net sales for the period amounted to SEK 60.6m (46.8) which correspond to a growth of 29.5 % compared to Q3 2021.
- EBITA margin 17 % (24.1).
- Net Profit SEK 7.7m (7.1).
- Earnings per share SEK 0.33.
- Earnings per share after dilution SEK 0.33.
CEO’s Comments
During the third quarter of 2022, we continued our growth journey with an ARR growth of SEK 16.3m, 7.2 percent, and with SEK 67.6m, 38.9 percent, over the last 12 months. Due to our global reach, with 70 percent of the ARR being in foreign currencies, exchange rate fluctuations contributed positively to the ARR growth during the quarter.
We continue to grow on all markets and notice that the US subsidiary has closed several new clients and reporting the strongest relative growth within the group.
Although we saw increased subscription revenue during the quarter Net Sales were SEK 0.1m lower than in Q2 resulting from decreased consulting revenue due to the vacation period. Also, the vacation period resulted in temporarily lower cost levels leading to an EBITA margin of 17.0 percent (24.1) compared to 4.9 percent in Q2.
SignUp has historically not been significantly impacted by such challenging macro-economic factors as we can witness today. We are increasing focus on our operations and KPIs to be prepared to take margin-preserving actions if needed.
One important metric we are monitoring is the development of Microsoft Dynamics 365, which according to Microsoft, showed a revenue growth by 31 percent during the second calendar quarter of 2022. That means that the addressable market is developing favourably for SignUp.
The investments in new employees during 2022 and the newly formed subsidiaries (Singapore, Netherlands, and the US) have impacted the EBITA margin during the last quarters, in accordance with our growth plan. We will continue to invest in our marketing and delivery capabilities but will be prioritizing a return to higher profitability in the quarters to come.
Olof Hedin, CEO