Slide 1: Q3 update
Q3 update October 25, 2019
Slide 2: Today’s presenters
Today’s presenters Erik Syrén, CEO Magnus Hansson, CFO Lime since 2001 Lime since 2015
Slide 3: The Lime story
The Lime story 28 years of experience of long term profitable growth 2000 – 2007 2008 – 2013 2014 –2018 2019 – Subsidiary within Bisnode, initial expansion and Transformation of business model to SaaS Focus on longterm profitable growth 100% CRM focus product development and organizational scale-up
Slide 4: Agenda
Agenda 1. COO 2. Strategy 3. Deals 4. ARR 5. Netsales 6. Profit- ability
Slide 5: Q3 2019 highlights
Q3 2019 highlights 1. COO
Slide 6: COO
1 COO Nils Olsson, COO Lime since 2006
Slide 7: Q3 2019 highlights
Q3 2019 highlights 1. COO 2. Strategy
Slide 8: Strategy 2020
Strategy 2020 2 Several organic drivers supported by acquisition opportunities 1 2 3 4 5 6 53% Sales CRM market growth 2017 in 12% CAGR rest of Nordics Structural market Geographical Grow sales from Platform expansion Target selected Ample M&A growth expansion existing customers o Extend current ver
Slide 9: Q3 2019 highlights
Q3 2019 highlights 1. COO 2. Strategy 3. Deals
Slide 10: Several deals in the Nordics
3 Several deals in the Nordics Good mixture between small, midsize and large enterprises Customer concentration 11,3% 9,9% 9,3% 2,1% 1,6% 1,4% 2017 2018 RTM 2019-09 Top 10 customers % of net sales Top customer % of net sales
Slide 11: Q3 2019 highlights
Q3 2019 highlights 1. COO 2. Strategy 3. Deals 4. ARR
Slide 12: Increase in annual recurring revenue drives growth
4 Increase in annual recurring revenue drives growth ARR development (SEKm) +22% 173 167 160 152 142 138 132 126 112 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Annual recurring revenue (ARR)
Slide 13: Q3 2019 highlights
Q3 2019 highlights 1. COO 2. Strategy 3. Deals 4. ARR 5. Netsales
Slide 14: Recurring revenue is growing rapidly
5 Transition from up-front to subscription pricing model since 2015 is nearly complete Recurring revenue is growing rapidly Pricing model transformation over time Revenue guidance LTM net sales by revenue stream, SEKm 300 License, subscription 275 CRM-system mainly as subscription Increased sale
Slide 15: Net sales development
6 5 Revenue SEKm Total Traction across geographies Net sales development 23% 19% growth SEKm Organic 18% 17% Y-o-Y growth (%) growth 43% 276,8 232,9 36% 15% 18% 55,4 68,0 49,5 Q3 2018 Q3 2019 RTM 2018-09 RTM 2019-09 34,7 227,3 SEKm 198,2 68,9 69,9 70,0 68,0 Sweden Rest of Nordics 61,5 Split by geogr
Slide 16: Q3 2019 highlights
Q3 2019 highlights 1. COO 2. Strategy 3. Deals 4. ARR 5. Netsales 6. Profit- ability
Slide 17: Profit
6 Profit reaching an LTM adjusted EBITA margin of 23% in Q3 2019 EBITA development1) Rolling LTM EBITA and margin development1) SEKm SEKm 62,5 +21% 62 51,5 26,2% 59 57 54 23,1% 23,5% 51 22,4% 22,6% 22,1% 22,0% 22,2%22,2% 22,1% 22,2% 22,1% 22,2% 21,2% 21,5% 48 47 21,4% 45 45 28,2% 28,4% SEKm 40 38 36
Slide 18: OPEX development
6 OPEX development Large majority of operating expenses related to growth in FTEs Personnel expenses development Other operating expenses development (adj.)1) SEKm SEKm +17% SEKm +4% 53,2 +19% 165,4 51,2 141,5 +2% 60,7% 59,8% 55,2% 53,4% 12,4 12,7 36,3 22,4% 22,0% 30,6 18,6% 19,2% Q3 2018 Q3 2019 RT
Slide 19: Financial targets
Financial targets RTM 2019-09 Sales growth “Lime’s objective in the medium term is to achieve an annual organic net 17% sales growth above 15%” “Lime’s objective in the medium term is to achieve an annual EBITA EBITA margin 22,6% margin above 23%” “The objective in respect of the capital structure i
Slide 20: Q3 2019 summary
Q3 2019 summary Nils Olsson becomes COO and COO and a new market we will open a new market during 2020 ARR SEK 173m Development in ARR +31 MSEK (22% growth) Y-on-Y Net sales SEK 68m Growth +13 MSEK (23% total growth and 54% outside Sweden) Adjusted EBITA margin 28% Profitability (28% same period las
Slide 21: Thank you for listening!
Thank you for listening! investors.lime-technologies.com