FormPipe Software (FPIP) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased by 5% year-over-year to SEK 130 million, driven mainly by the Lasernet business and operational changes.

• Recurring revenue now exceeds 80% of net sales, with SaaS revenue up 30% to SEK 44 million, contributing significantly to growth.

• Profitability improved to a 12% EBIT margin, despite one-off costs related to personnel reductions and organizational changes.

• New contracts were secured with Danish municipalities, Landbrugsstyrelsen, and the Swedish defense sector, though offset by churn in Swedish municipalities.

• Cyberattack affected Danish operations but had limited operational impact, with no external data leakage reported.

Financial highlights

• Net sales reached SEK 130 million, up from SEK 124 million year-over-year, with total revenue growing by SEK 6 million (5%).

• SaaS revenue increased by SEK 10 million year-over-year, representing 30% growth.

• EBIT margin improved to 12%, with EBIT at SEK 16 million excluding SEK 6 million in one-off costs.

• Rolling twelve-month recurring revenue reached SEK 420 million, up 14% year-over-year.

• Q3 EBITDA increased 13% to SEK 33 million, with a margin of 25%.

Outlook and guidance

• Positive outlook for ACV development and continued growth in Lasernet, with new product packaging (Essentials) aimed at accelerating adoption.

• Focus on modernizing the product platform and scaling efficiencies in the public business area.

• Financial targets for 2021-2025 include 10% average annual revenue growth, over 70% recurring revenue share, and over 20% EBIT margin by 2025.