Slide 1: Q1 results update
Q1 results update April 29, 2019
Slide 2: Today's presenters
Today’s presenters Erik Syrén, CEO Magnus Hansson, CFO Lime since 2001 Lime since 2015
Slide 3: 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 4: 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 5: Agenda
Agenda 1. Deals 2. Recruit- 3. ARR ment 4. Net 5. Profit- 6. Acqui- sales ability sitions
Slide 6: Q1 2019 highlights: Deals
Q1 2019 highlights 1. Deals
Slide 7: Focus on local enterprises within four industry verticals
1 1 Focus on local enterprises within four industry verticals Customer concentration Standard CRM ~60% of net sales Utility 11,3% 9,9% 10,0% Real estate ~40% of net sales Wholesale 2,1% 1,9% 1,6% Consultancy 2017 2018 RTM 2019-03 Top 10 customers % of net sales Top customer % of net sales
Slide 8: Positive revenue churn
1 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. 2,2 • Lost customers: • Acquisitions (Remotex, Netoptions & Sparta) included -0,5 1,7 -1,1 an old customer b
Slide 9: Q1 2019 highlights: Recruitment
Q1 2019 highlights 1. Deals 2. Recruit- ment
Slide 10: Substantially growing organization while increasing employee satisfaction
2 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 11: Q1 2019 highlights: ARR
Q1 2019 highlights 1. Deals 2. Recruit- 3. ARR ment
Slide 12: Increase in annual recurring revenue drives growth
3 Increase in annual recurring revenue drives growth ARR development (SEKm) +21% 160 152 142 138 132 126 111 112 106 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Annual recurring revenue (ARR)
Slide 13: Q1 2019 highlights: Net sales
Q1 2019 highlights 1. Deals 2. Recruit- 3. ARR ment 4. Net sales
Slide 14: Recurring revenue is growing rapidly
Transition from up-front to subscription pricing model since 2015 is nearly complete 4 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 15: Net sales development
46 Revenue SEKm Total Traction across geographies Net sales development 19% 20% growth SEKm Organic 19% 17% growth Sweden Rest of Nordics Y-o-Y growth (%) 255,7 213,0 34% 32% 58,5 69,9 18% 18% 255,6 Q1 2018 Q1 2019 RTM 2018-03 RTM 2019-03 40,1 213 SEKm 30,1 68,9 69,9 Sweden Rest of Nordics 61,5 Spli
Slide 16: Q1 2019 highlights: Profitability
Q1 2019 highlights 1. Deals 2. Recruit- 3. ARR ment 4. Net 5. Profit- sales ability
Slide 17: Profit
5 Profit reaching an LTM adjusted EBITA margin of 22% in Q1 2019 EBITA development1) Rolling LTM EBITA and margin development1) SEKm 56,5 SEKm +20% 57 47,2 54 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% 22,1% 21,2% 21,5% 40 21,4% 38 SEKm 36 37 34 33 33 22,2% 22,1% 19,8
Slide 18: OPEX development
5 OPEX development Large majority of operating expenses related to growth in FTEs Personnel expenses development Other operating expenses development (adj.) SEKm SEKm SEKm +19% SEKm +20% 54,5 +15% 154,5 45,5 130,1 +14% 64,1% 61,5% 61,1% 60,4% 11,8 13,4 43,0 37,5 20,1% 19,2% 21,4% 21,3% Q1 2018 Q1 20
Slide 19: Q1 2019 highlights: Acquisitions
Q1 2019 highlights 1. Deals 2. Recruit- 3. ARR ment 4. Net 5. Profit- 6. Acqui- sales ability sitions
Slide 20: Acquisition strategy
6 Acquisition strategy Strengthen the product portfolio both for new and existing customers Acquisition rationale 1 Strengthen product offering and value proposition Marketing Teleph- Sales autom- one PBX expertise 2 Gather competence and resources ation & chat 3 Cross sell Lime products to new cust
Slide 21: Financial targets
Financial targets RTM 2019-03 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 22,1% margin above 23%” “The objective in respect of the capital structure i
Slide 22: Q1 2019 summary
Q1 2019 summary ARR SEK 160m Development in ARR +28 MSEK (21% growth) Y-on-Y Net sales SEK 70m Growth +11 MSEK (19% organic growth and 38 % outside Sweden) Q-on-Q Profitability Adjusted EBITA margin 20% Several larger deals in Norway and Finland Order intake and within our focus verticals
Slide 23: Thank you for listening!
Thank you for listening! investors.lime-technologies.com