Visma grew its revenues by 16 percent to a record EUR 602 million in Q2. The announced divestment of the Group’s IT consulting business will further accelerate Visma’s strategy as a leading provider of cloud software in Europe.
Visma continued its strong development in the second quarter, with revenue reaching an all-time high of EUR 602 million, a growth of 16 percent compared to EUR 520 million in the same period last year. EBITDA grew 6 percent to EUR 148 million (140).
Despite heightened uncertainty about global economic prospects, Visma’s core markets remain strong. Both the Nordic and Benelux regions show healthy development with solid economic activity.
All of Visma’s three core segments delivered strongly in Q2, with the Small Business (SMB) segment showing particularly strong revenue growth of 25 percent. The Medium & Large Enterprise (MLE) and Public segments achieved revenue growth of 18 and 12 percent respectively.
“Our clients continue to invest in cloud software to modernise and further automate their business processes to increase efficiency. A diversified customer base, coupled with mission-critical software deliveries and a high degree of repeatable revenue makes Visma resilient towards a potential weaker development in the global economy”, says Merete Hverven, CEO of Visma.
Divestment of Visma’s consulting business
In June, Visma signed an agreement to divest its IT consulting business to CVC Capital Partners. A successful transaction will further streamline Visma as Europe’s leading provider of mission-critical cloud software, focusing on SaaS and standardised products.
The transaction is subject to customary regulatory approvals, and is expected to be concluded later this year. Visma will reinvest proceeds from the sale in new growth opportunities, both organic and inorganic.
“We believe this is a great outcome for all parties, enabling the IT consulting business to develop even faster and better as an independent entity. For Visma this means even sharper focus on our core business going forward, and additional funds to pursue our ambitious growth strategy”, says Hverven.
14 new companies
Visma’s acquisition activity continued at a high level in Q2, across all segments. 14 companies with a combined revenue of EUR 44 million (LTM) joined Visma in the period, bringing the total for 2022 so far to 29 new companies.
Among key acquisitions in Q2 was Belgium-based Teamleader, a provider of work management software that simplifies work processes and enables customers to focus on their core business. Other important acquisitions included Declarando, the fastest growing accountancy and tax software company for Spanish freelancers, and Intempus, the Danish time registration system.
“Visma’s focus continues to be on acquiring successful cloud companies, and being the preferred partner for promising tech entrepreneurs to take their businesses to the next level. With the divestment of our consulting business, we now have the capital to further pursue our strategy and acquire more innovative cloud companies with great, user-friendly products”, says Hverven.
Key figures for the second quarter of 2022:
- Revenue for the quarter reached EUR 602 million (520), a growth of 16 percent.
- EBITDA amounted to EUR 148 million, growing 6 percent.
- Annual repeatable revenue (ARR) reached an all-time high, growing 18 percent to EUR 1 778 million.
- 85 percent of Vismas total revenue came from SaaS and Cloud services, with SaaS revenue growing 28 percent.
- All of Visma’s segments had strong top line development, with the SMB segment having especially strong growth of 25 percent.
- M&A activity remained high with 14 acquisitions in the quarter, representing EUR 44 million in total annualised revenue and 25 percent EBITDA margin.
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