Formpipe Q2 comment: More SaaS affects earnings in the short term

Research Note

2017-07-14

10:44

Formpipe’s Q2 showed sales of SEK 97.1m, which was lower than our expectations of SEK 106m. This is mainly explained by the trend that more and more orders are done as a cloud service (SaaS), which affects the sales in the short term. EBITDA was also slightly lower than our expectations and came in at SEK 19.0m, where we expected SEK 22.1m. On the other hand, EBIT and the EBIT margin was in line with our expectations and came in at SEK 7.5m and 7.7% respectively (SEK 8.1m and 7.6%). However, even if the shift towards more and more SaaS orders affects earnings negatively in the short run, we believe that the shift will have a positive impact in the longer term.

JS

Johan Svantesson

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