Visma had another strong quarter with excellent top line revenue and continued profit growth. The company made its most significant transformational acquisition to date by acquiring Bluegarden.
Visma delivered a revenue of 2 218 million compared to 1 873 million in the third quarter last year. Total revenue growth was 18.4% while EBITDA improved by 5.6% over Q3 2016 to reach NOK 588 million, yielding a strong EBITDA margin of 26.5%.
Continued revenue growth
Revenues in each of Visma's three largest divisions grew between 15% and 40% year on year. The SMB Division increased revenues by 15%, Enterprise grew by an impressive 41% and Custom Solutions achieved 31% growth compared to the third quarter one year ago.
Saas and Saas transactions continue to be the strongest driver of organic growth in Visma, and during the quarter, cloud annualised revenue grew by 44% to surpass NOK 5 300 million.
SaaS main focus
– The demand for SaaS solutions is steadily increasing, and we continue to invest and lead the transition to SaaS in our core products and services. Our customers increasingly prefer subscription-based models to large up-front investments, and we are continuously launching new SaaS products, says Øystein Moan, CEO of Visma.
Visma continues its proactive and agile acquisitions. The acquisition of Bluegarden, a leading HRM/Payroll provider in Denmark, Norway and Sweden, boosts Visma's strategic position in core HRM in Denmark and provides a significant increase in SaaS payroll revenues.
– HRM is a key area for Visma. Bluegarden's high competence and knowledge will lead to beneficial mutual opportunities to continue delivery of even more sustainable solutions to our customers, says the CEO.