Formpipe: The increase in SaaS deliveries affected Q2 negatively

Research Update

2017-07-20

07:30

Q2 revenue of SEK 97.1m was lower than our expected SEK 106m. EBIT-margin came in at 7.7%, with a positive impact from non-recurring items, and was thereby in line with our expectations. The shift towards more SaaS orders affected sales and earnings negatively. However, we believe that the shift will have a positive impact in the long term. Q2 showed recurring revenues of SEK 46.7m which corresponds to an increase of almost 8% from previous year. With the scalability in mind, we expect profitability to improve over time. Our Base case remains intact, meaning that Base case yields a motivated value of 15 SEK per share. Moreover, we still 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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