UNIT4, the international cloud-focused business software Group listed on the Amsterdam Stock Exchange, today announced its financial results for Q1 2013. The UNIT4 Group, which specializes in software for fast-changing organizations, saw healthy business trading in the first quarter of the year with considerable growth in SaaS and Subscription deals.
UNIT4 grew by 2% in Q1 2013 to achieve a revenue of €117.6 million (Q1 2012: €115.3 million), with SaaS and Subscription revenues compensating for a decrease in the number of license deals compared to the previous year.
The Group recorded particularly strong performances in the UK, the Benelux and in its cloud venture, FinancialForce.com.
In the UK two major SaaS contracts were signed in the public sector. The largest was the DfT (Department for Transport) contract with partner arvato who has been awarded the contract to operate the first independent central government outsourced shared service centre. The Agresso Central Government Enterprise Resource Planning (ERP) Platform will replace the existing SAP system to underpin the services offered. The other major deal saw the Agresso Local Government ERP Platform procured by BT Global Services to support the London Tri-borough shared services project for 15,000 users across Finance and Human Resources (HR), replacing systems from Oracle and JD Edwards.
The Benelux showed double digit revenue growth in the first quarter, recording particularly strong performance in the healthcare sector.
FinancialForce.com, the cloud applications company in which UNIT4 is the majority investor, continues its rapid growth and saw a record quarter in both bookings and run rates. Total revenue increased in the first quarter by more than 90%, and with an extremely strong sales pipeline and increasingly larger customers, the company continues its ambitious growth.
The gross margin increased to a level of 93.2% in Q1, compared with 92.0% over the same period in 2012.
Excluding the scheduled restructuring costs of €5.3 million (Q1 2012: €2.0 million) and excluding the extra investments in FinancialForce.com of €2.7 million (Q1 2012: €1.9million), the EBITDA over the first quarter grew to a level of €22.0 million (Q1 2012: €21.9 million).
Edwin van Leeuwen, UNIT4 NV’s CFO, said: “The underlying operational performance in the first quarter was better than our forecast – since we initially projected that Q1 2013 would end below the same period of last year. This was because the large SaaS deals signed in Q1 have nil impact in the first quarter, but will be recognized gradually over the course of the second half of the year. If these SaaS deals had been fully recognized in Q1, the growth would have been significantly higher. We also completed the 2013 restructuring plan in line with our mid- to long-term strategic plan and as communicated in our full-year 2012 press release.”