DGAP-News: RIB Software SE
/ Key word(s): 9 Month figures/Quarter Results
RIB Software SE with strong revenue and profit development in Q3 2019 - Recurring revenues (ARR) increase by 112.4% to EUR 25.7 million in Q3
30.10.2019 / 07:30
The issuer is solely responsible for the content of this announcement.
30-October-2019
RIB Software SE with strong revenue and profit development in Q3 2019 - Recurring revenues (ARR) increase by 112.4% to EUR 25.7 million in Q3
Organic growth in Q3 2019 exceeds 20% for the first time / Operating EBITDA margin in the iMTWO segment at 26.0% (Q2 2019: 20.8%) / Cash and cash equivalents of EUR 132.6 million
- Group revenues increase by 59.7% to EUR 151.6 million (previous year: EUR 94.9 million)
- Recurring revenues (ARR) grow by 95.0% to EUR 77.6 million (previous year: EUR 39.8 million)
- The EBITDA margin Q3 2019 in the iMTWO segment is at a high level of 26.0% (Q2 2019: 20.8%)
- Number of MTWO/iTWO 4.0 platform users grows by 113.9% compared to Q2 2019 to 44,325 (target 2019: 30,000; target 2020: 100,000 cumulated) Target 2019 exceeded after 9 months
- Group forecast (Guidance) for 2019 confirmed
Stuttgart, Germany, 30 October 2019. RIB Software SE, the world's leading provider of iTWO 4.0 Cloud Enterprise Platform Technology, today announces its financial figures for the first nine months of 2019.
STRONG REVENUE AND PROFIT DEVELOPMENT IN THE THIRD QUARTER OF 2019
The RIB Group delivered a strong result in the third quarter for both revenues (plus 81.5%) and operating EBITDA (plus 23.9%). In the third quarter, recurring revenues (ARR) increased 112.4% to EUR 25.7 million (previous year: EUR 12.1 million). Non-recurring revenues (NRR) rose by 40.8% year-on-year to EUR 14.5 million (previous year: EUR 10.3 million). Adjusted for acquisitions, revenue growth of 24.6% was significantly higher than organic growth of 5.3% in the first half of 2019. At EUR 14.5 million, operating EBITDA in the third quarter was 23.9% higher than in the third quarter of the previous year (EUR 11.7 million). This corresponds to an operating EBITDA margin of 24.6%.
DYNAMIC GROWTH IN 2019 CONTINUES TO INCREASE
The dynamic growth during the investment phase is further boosted and is also reflected in the cumulative Group figures. Group revenues for the first nine months rose strongly by 59.7% to EUR 151.6 million (previous year EUR 94.9 million). Organic Group sales growth amounted to 17.1% (H1 2019: 5.3%). Organic growth was influenced by the gradual shift of the business model from license sales to subscription - adjusted for this effect, organic growth in the Group would have been 19.8%. Recurring revenues (ARR) grew very strongly by 95.0% to EUR 77.6 million (previous year: EUR 39.8 million).
OPERATING EBITDA INCREASES BY 13.7 % TO EUR 34.8 MILLION
Operating EBITDA rose by 13.7% year-on-year to EUR 34.8 million (previous year: EUR 30.6 million). The operating EBITDA margin of 23.0% during the investment phase was in the expected range of 20-30%, despite acquisition and start-up costs of EUR 4.5 million. Operating EBITDA, adjusted for one-off acquisition and start-up costs, rose by 28.8% to EUR 39.3 million (previous year: EUR 30.6 million). This corresponds to a margin of 25.9%.
GROUP LIQUIDITY AND M&A CAPACITIES
RIB currently has investment funds of EUR 219.3 million (EUR 132.6 million cash and cash equivalents plus 3.719 million treasury shares (value EUR 23.30 per share)). In 2019, we invested in Levtech/Dubai, Datengut/Leipzig, Cadline/London, BSD/Atlanta, CCS/Johannesburg, Redstack/Adelaide, Winjit/Nashik, Capricot/Bangalore, datapine/Berlin, U.S. CAD/Irvine, California, and CSS UK/London. The goal is to increase revenues in 13 quarters by an average of 30-60% - after 4 quarters (Q4 2018 to Q3 2019) we have reached the upper end with 59% ((57%+47%+49%+82%) divided by 4).
30,000 USER MTWO/iTWO 4.0 PLATFORM IN 2019 AND FURTHER TARGETS
In Q3 2019, we were able to increase the USER by 113.9% from 20,726 USER in Q3 2019 to 44,325 USER. We have thus already far exceeded the target for 2019 after 9 months and confirm our target of over 100,000 USER in 2020 and over 2 million USER in the medium term.
MICROSOFT PARTNERSHIP TO BUILD THE WORLD'S LEADING VERTICAL CLOUD MTWO FOR THE CONSTRUCTION INDUSTRY
The establishment of a leading vertical cloud platform MTWO for the construction industry together with Microsoft and for the marketing of the iTWO 4.0 technology is on track. We have completed 80% of the foundation for a global roll-out of iTWO 4.0 technology and MTWO in the world's core IT markets. The successful establishment of distribution networks in the USA, Australia, the United Kingdom and India will enable MTWO and iTWO 4.0 technology to attract massive numbers of users in key markets from 2020 onwards.
xYTWO SEGMENT
The revenues of xYTWO are estimated to be less than 5% of Group revenue in 2019. xTWO achieved a positive EBITDA margin in the third quarter of 2019. Due to the strong demand for iTWO 4.0 and MTWO, we already decided in H1/2019 not to expand YTWO's customer base and to focus on MTWO, iTWO 4.0 and the integration of new business units. As planned, xYTWO will deliver positive impulses in the medium term.
STRATEGY 2020-2030
The Administrative Board develops a strategy for the years 2020 - 2030 to ensure the long-term success of the company. The aim of the strategy is to establish RIB as the global market leader for digital transformation combined with cloud-based business software in the global construction industry.
TRADE WAR, RIB MARKETS AND COMPETITORS
Software revenues in China account for less than 1% of total revenues. Therefore, we do not see any significant negative impact from the trade war between the US and China. The market for cloud and BIM construction software is growing rapidly, and construction markets are booming. In the first nine months, RIB was able to increase its lead over our competitors in many areas, and we believe we can achieve our medium-term goal of becoming a leading platform provider in our industry.
GROUP FORECAST (GUIDANCE) FOR 2019 CONFIRMED
On the basis of the strong and high revenue and profit development in the 2019 financial year to date, we confirm the Group forecast for the 2019 financial year and, in line with the guidance, expect revenues of EUR 210 million to EUR 225 million and operating EBITDA of EUR 46 million to EUR 52 million.
FIGURES SEGMENT iMTWO:
| EUR million unless otherwise indicated |
Q3 2019 |
Q3 2018 |
∆ in % |
9 months 2019 |
9 months 2018 |
∆ in % |
| Revenue |
56.9 |
30.3 |
87.8% |
144.4 |
88.2 |
63.7% |
| EBITDA |
14.8 |
12.3 |
20.3% |
36.8 |
31.0 |
18.7% |
| as % of revenue |
26.0% |
40.6% |
|
25.5% |
35.1% |
|
| EBITDA adjusted by IFRS 16 |
13.3 |
12.3 |
8.1% |
32.7 |
31.0 |
5.5% |
| as % of revenue |
23.4% |
40.6% |
|
22.6% |
35.1% |
|
FIGURES SEGMENT xYTWO:
| EUR million unless otherwise indicated |
Q3 2019 |
Q3 2018 |
∆ in % |
9 months 2019 |
9 months 2018 |
∆ in % |
| Revenue |
2.1 |
2.2 |
-4.5% |
7.1 |
6.8 |
4.4% |
| EBITDA |
-0.4 |
0.0 |
|
-0.9 |
0.1 |
-1000% |
| as % of revenue |
-19.0% |
0.0% |
|
-12.7% |
1.5% |
|
| EBITDA adjusted by IFRS 16 |
-0.4 |
0.0 |
|
-1.0 |
0.1 |
-1000% |
| as % of revenue |
-19.0% |
0.0% |
|
-14.1% |
1.5% |
|
CONSOLIDATED FIGURES - OVERVIEW
| EUR million unless otherwise indicated |
Q3 2019 |
Q3 2018 |
∆ in % |
9 months 2019 |
9 months 2018 |
∆ in % |
| Revenue |
59.0 |
32.5 |
81.5% |
151.6 |
94.9 |
59.7% |
| Software ARR |
25.7 |
12.1 |
112.4% |
77.6 |
39.8 |
95.0% |
| Software NRR |
14.5 |
10.3 |
40.8% |
33.9 |
27.8 |
21.9% |
| Services |
16.7 |
7.9 |
111.4% |
33.3 |
20.6 |
61.7% |
| E-commerce |
2.1 |
2.2 |
-4.5% |
6.8 |
6.8 |
0.0% |
| EBITDA |
14.4 |
12.3 |
17.1% |
35.9 |
31.1 |
15.4% |
| as % of revenue |
24.4% |
37.8% |
|
23.7% |
32.8% |
|
| EBITDA adjusted for IFRS 16 |
12.9 |
12.3 |
4.9% |
31.8 |
31.1 |
2.3% |
| as % of revenue |
21.9% |
37.8% |
|
21.0% |
32.8% |
|
| EBT adjusted for PPA amortisation |
10.2 |
9.3 |
9.7% |
23.7 |
22.5 |
5.3% |
| as % of revenue |
17.3 |
28.6% |
|
15.6% |
23.7% |
|
| Expenses from purchase price allocations (PPA amortisation) |
3.9 |
1.3 |
200% |
8.7 |
3.5 |
148.6% |
| Cash flow from operating activities |
|
|
|
25.5 |
21.4 |
19.2% |
| Group liquidity* |
|
|
|
132.6 |
238.2 |
-44.3% |
| Equity ratio** |
|
|
|
73.6% |
83.6% |
|
| Average number of employees |
|
|
|
1,524 |
980 |
55.5% |
* Cash and cash equivalents, time deposits and available-for-sale securities. Previous year as of 31 December 2018
** Previous year as of 31 December 2018
The complete Quarterly Statement (January - September 2019) is available for download on the RIB Group website under Investor Relations.
About RIB Group
RIB Software SE is an innovator in building and construction industry. The company creates, develops and offers cutting-edge digital technologies for construction enterprises and projects across various industries worldwide. iTWO 4.0, RIB's flagship cloud-based platform, provides the world's first enterprise cloud technology based on 5D BIM with AI integration for construction companies, industrial companies, developers and project owners, etc. With over 50 years of experiences in construction industry, RIB Software SE focuses on IT and engineering and becomes the pioneer in construction innovation, exploring and brining in new thinking, new working methods and new technologies to enhance construction productivity. RIB is headquartered in Stuttgart, Germany and Hong Kong, China, and listed on the prime standard Frankfurt Stock Exchange since 2011. With over 1,500 talents in more than 30 locations worldwide, RIB is targeting to transform the construction industry into the most advanced and digitalized industry in the 21st century.
30.10.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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