Formpipe: Continues to increase profitability

Research Update

2017-04-28

08:47

Q1 revenue of 94.7 mSEK was slightly lower than our expected 97 mSEK. EBIT-margin came in at 4.7%, which also was lower than our expected 5.7%. On the other hand, a positive takeaway is the improvement in profitability compared to last year. Especially since Q1 was a quarter without any major license deals. Recurring revenue continues to grow. With the scalability in mind, we expect that profitability will continue to improve. We have changed our Base case, mainly driven by lower investments than we previously expected and a higher mid-term EBIT-margin. Our Base case yields a motivated value at 15 SEK per share. Moreover, we estimate a fair value range to be between a Bear case of 9 SEK and a Bull case of 20 SEK per share.

JS

Johan Svantesson

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