Cloud services contributed to solid growth for Visma in Q3

21.10.2013 - Cloud services contributed to solid growth for Visma in Q3

Visma delivered a strong third quarter and maintain the solid growth rate. Cloud revenue increased with over 50% compared to the same period last year.

Visma had a strong third quarter and maintained its solid growth rate. Visma delivered revenue of NOK 1 516 million, compared with NOK 1 326 during the same period last year, an increase of 14.3 percent. The EBITDA came in at NOK 363 million, compared to NOK 309 million in the third quarter 2012, representing an increase of 17.5 percent. Net cash flow from operations after tax at the end of the first three quarters of 2013 was NOK 878 million versus NOK 769 million in 2012.

Increased demand for Cloud solutions
Visma is experiencing an increasing demand for Cloud services. The growth in SaaS (Software as a Service) revenue was 56 percent in the third quarter 2013 compared to Q3 2012, reaching NOK 151 million. Visma intends to invest considerably in SaaS and to take Visma’s core SME Software products and services to the Cloud.

– More and more of our customers are using services in the Cloud. The cloud conversion is speeding up as customers are tapping into Visma’s cloud. I’m happy to see that the SaaS revenue exceeded 50% this quarter, says Øystein Moan, CEO of Visma.

Visma expects even more interest in Software as a Services compared to traditional On-Premises software. Visma has launched several new SaaS products during 2013, and the heavy investment in Cloud-based products continues. Also services like procurement, accounting, payroll, debt collection and software consultancy are increasingly based on SaaS.

– Visma is in the middle of a process of moving all our activities to a SaaS model. Our customers increasingly prefer subscription based cost-models instead of large up-front investments, says Moan.

Acquisition activity

Visma continues its strategy of expanding the business within the Nordic countries and in the Netherlands, and continues to expand within the existing lines of business. This quarter Visma has completed the acquisition of Duetto Group in Finland, a company specialized in debt collection and legal services

– The combination of acquisitions and an extension of already existing products and services is a good strategy for growth. Entering the Finnish debt collection market increases the competitiveness and ability to deliver even more services to existing and new customers, Moan says.

 

3rd quarter 2013

3rd quarter 2012

Growth

Revenue

1 516

1 326

14,3%

EBITDA

363

309

17,5%

EBIT

269

222

21,3%

Profit before tax

183

170

7,6%