Formpipe Software

Research note


Formpipe: Q2 preview

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On Friday the 13th of July, Formpipe will publish its report covering the second quarter of 2018. We expect sales approximately SEK 99m and EBIT of about SEK 10m.

Formpipe started the year strongly and the profitability in Q1’18 came in significantly higher than we expected. The profitability was explained by a good drive in growth areas, completed measures in areas where the company has faced challenges and a somewhat larger share of traditional licenses. However, the company anticipated the increase in traditional licenses deals as temporary and estimated the SaaS-trend to continue. In Q2’18, we expect SaaS-sales to amount to SEK 7.7m compared to SEK 3.9m in Q2’17.

The trend in increased SaaS deals will, most likely, have a negative impact on sales, earnings, and cash flow during the year. In 2019, the positive effects of the increase in recurring revenues are expected to exceed the negative effects of the missing revenue from traditional licenses.

As mentioned, the report will be released on Friday the 13th of July. As always, we will present our first impression shortly after that.

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