Rapporter | 10 Nov 2022 | Pagero

Pagero AB: Pagero publishes interim report for Q3 2022: Continued delivery according to plan

”Pagero has invested, and continues to invest, in both the organization and development of the Pagero Network – all to accelerate our journey towards becoming the world’s largest network for communication of business documents. Despite the impact of the summer holiday period, business developed well with an organic net growth of 26%, an organic growth of recurring revenue of 21% and an increase in service sales of 74%. This indicates a high level of activity and increasing demand in the market”, says Bengt Nilsson, CEO at Pagero.

Third quarter of 2022

• Net sales amounted to SEK 151.1 million (120.0), which is an increase of 26% (22% adjusted for currency). Organic growth amounted to 26% (16%).
• Recurring revenue amounted to SEK 129.9 million (107.8), which is an increase of 21% (18% adjusted for currency). The increase is a result of a strong growth of transactions in the Pagero Network including the acquisition of Gosocket. Organic growth of recurring revenue amounted to 21% (14%).
• Operating loss after depreciation/amortization (EBITA) amounted to SEK 16.4 million (1.9). The loss is in line with the set international expansion strategy.
• Cash flow from operating activities amounted to an outflow of SEK 25.6 million (3.1) in the quarter mainly due to seasonal variation linked to the invoicing date. The company’s liquid position is SEK 458.9 million.
• Earnings per share before dilution amounted to a loss of SEK 0.91.
• Pagero is approved as a Peppol service provider in Japan.

January – September 2022

• Net sales amounted to SEK 430.5 million (307.0), which is an increase of 40% (37% adjusted for currency). Organic growth amounted to 22% (12%).
• Recurring revenue amounted to SEK 377.4 million (277.0), which is an increase of 36% (33% adjusted for currency). The increase is a result of a strong growth of transactions in the Pagero Network including the acquisition of Gosocket. Organic growth of recurring revenue amounted to 19% (14%).
• Annualized Recurring Revenue (ARR) amounted to SEK 535.9 million (449.4), which is an organic growth of 19% (20%).
• Operating loss after depreciation/amortization (EBITA) amounted to SEK 77.5 million (22.1). EBITA is affected by external non-recurring costs of SEK 16.9 million in connection with the attempt to acquire Tungsten; adjusted EBITA amounts to a loss of SEK 60.6 million. The loss is in line with the set international expansion strategy.
• The company is financially strong despite a negative cash flow from operating activities of SEK 6.1 million (positive: 12.7). The company’s liquid position is SEK 458.9 million. During the period, the company made a repayment of SEK 450 million. 
• Earnings per share before dilution amounted to a loss of SEK 1.42. 
• Pagero continues to successfully enter into agreements with several Fortune 500 companies and global leaders in automotive, IT and healthcare.
• The company acquires Creative Technologies, to which it previously outsourced its R&D business in Sri Lanka.

Significant events after the end of the period

• Spain introduces national legal requirements for e-invoicing.
• A price adjustment has been announced to the existing customer base.

Webcast in conjunction with publication
Bengt Nilsson, CEO, will be delivering a presentation and Q&A in relation to the interim report on 10 November at 08.00 CET. To participate in the live event, follow this link ( https://www.finwire.tv/webcast/pagero-group/q3-2022/ ). A recorded version will also be available on Pagero’s website ( https://www.pagero.com/investors/financial-reports-and-presentations/ ) after the event.

Interim reports
The interim report is available on Pagero’s website ( https://www.pagero.com/investors/financial-reports-and-presentations/ ). 

For more information

Bengt Nilsson, CEO
Bengt.nilsson@pagero.com

Jan-Olof Ohlsson, CFO
Jan-olof.ohlsson@pagero.com

Certified adviser
Erik Penser Bank is Certified Adviser and can be contact on +46 (0) 8-463 83 00 or certifiedadviser@penser.se.

This information is information that Pagero Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact persons set out above, at 2022-11-10 07:30 CET.

About Pagero

Pagero provides a Smart Business Network that connects buyers and sellers for automated, compliant, and secure exchange of orders, invoices, payment instructions and other business documents. With an open network and a wide range of value-added apps, Pagero helps businesses streamline their order-to-cash and purchase-to-pay processes while unlocking the full potential of accurate and reliable business data. All of this, regardless of location, industry, size or systems. 

Pagero’s share is traded on Nasdaq First North Growth Market under ticker PAGERO and ISIN SE0016830517.

Find out more on www.pagero.com