Visma increased revenue by 20 percent in the third quarter, with especially strong growth in SaaS products. Divestment of non-core assets and strong M&A activity support accelerated growth in core software business and geographical expansion.
Visma achieved revenue of EUR 533 million in the third quarter, an increase of 20 percent compared to the same period last year. EBITDA was EUR 173 million, up 12 percent from Q3 21. The figures are adjusted for the divestment of Visma’s IT consulting business, previously a part of Visma Custom Solutions, which was completed at the end of Q3 22.
“In a turbulent environment for business and society as a whole, Visma continued to deliver profitable growth in Q3. In times of economic uncertainty, companies and organisations will have even stronger incentives to invest in software that automates processes and increases efficiency”, says Merete Hverven, CEO of Visma.
Increased R&D and marketing spend boosted Visma’s core SaaS (Software as a Service) offering, resulting in accelerated organic revenue growth of 27 percent for this category. More than 84% of Group revenue now comes from products delivered through the cloud, and Annualised Repeatable Revenue (ARR) has reached EUR 1.9 billion.
Expanding presence in Europe
Another key event in the quarter was the acquisition of the French software provider Inqom, which automates accounting processes through artificial intelligence. This marks Visma’s first market entry in France.
“I’m very excited about the prospect of entering the French market, where we have significant growth ambitions going forward. Most European businesses have only just started their cloud transition journey, and we want to be their preferred provider of mission-critical ERP software. Accessible from anywhere, secure and always up to date”, says Hverven.
In addition to announcing Inqom, Visma also finalised the acquisition of Swedish cloud accounting provider Bokio in the period. At the end of the quarter, a total of 28 new companies with a combined revenue of EUR 97 million had joined Visma so far in 2022, compared to a total of 42 acquisitions in the whole of 2021.
In late September, Visma also launched a public offer for House of Control, a Norwegian tech company that develops SaaS solutions for contract management and IFRS 16 compliance. The offer, which expires at the end of October, is unanimously recommended by House of Control’s board and management.
A pure play software company
While acquisitions remain an essential part of the company’s growth strategy, Visma has also divested several companies so far in 2022. In addition to the aforementioned sale of the IT consulting business, the Group also signed agreements to sell its Cloud Infrastructure Services (CIS) division and its finance venture Visma Finance Norway during the quarter.
“These divestments of non-core activities are driven by our conviction that the companies will achieve stronger growth and sharper focus as independent units. As for Visma, we become more streamlined and focused on our core product offering of standardised, mission-critical cloud software”, says Hverven.
Key highlights for the third quarter of 2022:
- Entered France through acquisition of cloud accounting software provider Inqom
- Revenues of EUR 533 million, up 20% from the same quarter last year
- EBITDA of EUR 173 million, an increase of 12% compared to Q3 21
- Annualised Repeatable Revenue reached EUR 1 885 million, 14% organic growth
- Finalised sale of IT consulting business (part of Visma Custom Solutions), signed agreements to sell CIS division and Visma Finance Norway
- Nearly 20 million monthly e-invoices processed through Visma’s systems (+24%), payroll systems generated 11.1 million payslips (+13%)
For more information, please contact:
Lage Bøhren, Head of Communications: +47 921 57 801
lage.bohren@visma.com
