Crealogix Holding AG
CREALOGIX: Higher expenditures weigh on profitability, but open up new business areas
Crealogix Holding AG / Key word(s): Half Year Results Ad hoc announcement pursuant to Art. 53 LR Zurich, 15 March 2022 Total sales decreased by CHF 7.2 million to CHF 45.4 million in the first half of the current financial year. Recurring sales were CHF 25.4 million, which corresponds to 56% of total sales. CREALOGIX was thus able to increase the share of recurring revenue for the second time (previous year: 50%). SaaS/hosting sales also increased by 8% and accounted for 32% of total sales. The higher sales from the SaaS business is mainly due to orders from development banks in Germany. To drive the development of the funding portal for the German development banks and other strategic products, CREALOGIX significantly increased expenditures in product development (R&D), investing a total of 30% of sales. In the previous year, it had been 18% in the same period. The high development expenditures had a negative impact on EBITDA: this was CHF -3.8 million. Even additional cost-cutting measures could not fully compensate for the high expenditures. In addition, the ongoing travel restrictions due to the Covid-19 pandemic hampered new customer acquisition in all regions and dampened CREALOGIX’s growth targets. In the first half of 2021/2022, CREALOGIX recorded a net loss of CHF -7.7 million before goodwill depreciation. Free cash flow was CHF -15.4 million, significantly lower than in the previous year: CHF -1.5 million. Cash and cash equivalents also decreased to CHF 22.7 million (30 June 2021: CHF 27.7 million). Accounting continues to be conservative, with goodwill from prior acquisitions constantly amortised and research and development (R&D) expenses charged directly to the income statement. With an optimised cost structure, the consolidation of the product portfolio and the establishment of nearshore centres, CREALOGIX has cut costs and reduced staff. In the second half of the year, the company will continue to work on its cost base to increase profitability on an ongoing basis. CEO Oliver Weber said: ‘We remain committed to the implementation of our SaaS strategy. Through the product investments made and the focusing of our portfolio, we will achieve our financial targets, in particular a substantially improved EBITDA margin.’ Improved second half You can download the full 2021/2022 half-year report here:
CREALOGIX recorded a decline in sales in the first half of the 2021/2022 financial year. The ongoing conversion of the business model from licences to the SaaS (software as a service) rental model and higher expenditures in product development have weighed on profitability. At the same time, the share of recurring sales increased to 56% of total sales. In the medium term, SaaS business and expenditures will open up new business areas for us as a fintech specialist. About CREALOGIX
This press release contains forward-looking statements, which offer no guarantee regarding future performance. These statements are based on information currently available to our management as well as on management's current assumptions and forecasts. There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results, financial situation and performance to differ materially from the forward-looking information and statements made in this presentation. Each forward-looking statement speaks only as of the date of the particular statement and CREALOGIX does not assume any obligation to update or revise any forward-looking statements or other information. End of ad hoc announcement |
Language: | English |
Company: | Crealogix Holding AG |
Badenerstrasse 694 | |
8048 Zürich | |
Switzerland | |
Phone: | +41442959041 |
E-mail: | media@crealogix.com |
Internet: | www.crealogix.com |
ISIN: | CH0011115703 |
Listed: | SIX Swiss Exchange |
EQS News ID: | 1302329 |
End of Announcement | EQS News Service |