Slide 1: Q4 results update
Q4 results update February 13, 2019
Slide 2: Lime's vision and mission
6 Lime’s vision and mission Help companies attract new and keep existing customers Vision Mission We create customer magnets
Slide 3: This is Lime
This is Lime Nordic SaaS CRM expert with solid growth opportunities Geographical footprint Key success factors Helsinki • Long history of profitable growth. 2000-2018 CAGR of 18% in net sales FTEs: 14 & CAGR of 25% in adjusted EBITA. Stockholm Oslo FTEs: 49 FTEs: 11 • SaaS as a business model, appro
Slide 4: Agenda
Agenda 3. Recruit- 1. IPO 2. Deals ment 5. Net 6. Profit- 4. ARR sales ability
Slide 5: Q4 2018 highlights
Q4 2018 highlights 1. IPO deals ARR
Slide 6: 1
1
Slide 7: Q4 2018 highlights
Q4 2018 highlights 1. IPO 2. Deals ARR
Slide 8: Focus on local enterprises within four industry verticals
1 2 Focus on local enterprises within four industry verticals Customer concentration Standard CRM ~60% of net sales 15,7% Utility 11,3% 9,9% Real estate ~40% of net sales Wholesale 2,3% 2,1% 1,6% Consultancy 2016 2017 2018 Top 10 customers % of net sales Top customer % of net sales
Slide 9: Positive revenue churn
2 Positive revenue churn Software net revenue churn Comments SEKm • Downgrades: Existing customers reduce numbers of users and Positive software net revenue churn of SEK 0.1 million1) addons. • Lost customers: 2,5 • Acquisitions (RemoteX, Netoptions & Sparta) included 1,5 an old customer base intere
Slide 10: Q4 2018 highlights
Q4 2018 highlights 1. IPO 2. Deals 3. Recruit- ment
Slide 11: Substantially growing organization while increasing employee satisfaction
3 Substantially growing organization while increasing employee satisfaction Lime is an attractive employer Trainee program for new hires ~75% hired directly from universities in 2018 On-boarding >3,500 - Kick-off applicants ~90% have academic - Follow-up education x2 for 65 Degree - Graduation! posi
Slide 12: Q4 2018 highlights
Q4 2018 highlights 1. IPO 2. Deals 3. Recruit- ment 4. ARR
Slide 13: Increase in annual recurring revenue drives growth
4 Increase in annual recurring revenue drives growth ARR development (SEKm) +21% 152 142 138 132 126 111 112 106 84 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Annual recurring revenue (ARR)
Slide 14: Q4 2018 highlights
Q4 2018 highlights 1. IPO 2. Deals 3. Recruit- ment 5. Net 4. ARR sales
Slide 15: Net sales development
5 6 Revenue SEKm Total Traction across geographies Net sales development 20% 20% growth SEKm Organic 19% 16% growth Sweden Rest of Nordics Y-o-Y growth (%) 244,3 203,9 32% 53% 57,5 68,9 18% 24% Q4 2017 Q4 2018 Q1-Q4 2017 Q1-Q4 2018 36,7 203,9 SEKm 27,9 68,9 Sweden Rest of Nordics 160,4 61,5 Split by
Slide 16: Recurring revenue is growing rapidly
Transition from up-front to subscription pricing model since 2015 is nearly complete 5 Recurring revenue is growing rapidly Pricing model transformation over time Revenue guidance LTM net sales by revenue stream, SEKm 275 License, subscription 250 CRM-system mainly as subscription Increased sale
Slide 17: Q4 2018 highlights
Q4 2018 highlights 3. Recruit- 1. IPO 2. Deals ment 5. Net 6. Profit- 4. ARR sales ability
Slide 18: Profit
6 Profit reaching an LTM adjusted EBITA margin of 23% in Q4 2018 EBITA development1) Rolling LTM EBITA and margin development1) SEKm SEKm 54,3 +20% 54 45,3 51 26,2% 47 48 45 23,5% 45 23,1% 22,1% 22,4% 22,0% 22,2% 22,2% 22,1% 22,2% 21,2% 21,5% 40 21,4% 38 SEKm 36 37 34 33 22,1% 22,5% 22,2% 22,2% 33 1
Slide 19: OPEX development
6 OPEX development Large majority of operating expenses related to growth in FTEs Personnel expenses development Other operating expenses development (adj.) SEKm SEKm SEKm +20% SEKm +19% 149,0 52,9 +22% 123,7 44,6 +15% 60,0% 61,0% 60,7% 61,0% 13,1 15,0 42,0 34,5 22,8% 21,8% 21,9% 21,7% Q4 2017 Q4 20
Slide 20: Financial targets
Financial targets 2018 Sales growth “Lime’s objective in the medium term is to achieve an annual organic net 16% sales growth above 15%” “Lime’s objective in the medium term is to achieve an annual EBITA EBITA margin 22,2% margin above 23%” “The objective in respect of the capital structure is that
Slide 21: Q4 2018 summary
Q4 2018 summary ARR SEK 152m Development in ARR +26 MSEK (21% growth) Y-on-Y Net sales SEK 69m Net sales growth +11 MSEK (20% growth) Q-on-Q Improved profitability Adjusted EBITA margin1) 23% Several larger deals outside Sweden Order intake and within our focus verticals Note: 1) EBITA adjusted for
Slide 22: For more information
For more information investors.lime-technologies.com