Basware Corporation, stock exchange release, October 19, 2016 at 08:40 Basware revises its organic revenue guidance for 2016 Basware is updating its 2016 guidance:
Basware's transition to a cloud company has progressed at a fast pace. Our SaaS revenues have been growing very strongly both organically and in total, and are expected to continue to do so. However, although our organic SaaS growth has been faster than indicated in our strategy, it has not yet fully offset the faster than expected decline in revenues from license sales and maintenance. The transition to SaaS has also impacted our consulting revenues which have been more negative than expected in 2016.
Transaction volumes in our network have grown at a reasonable rate in 2016, however transaction revenues have been impacted by the decline of start-up fees. Overall the growth in transaction revenues has not yet been sufficient to offset the drags on our business caused by the SaaS transformation and decline of consulting revenues.
Basware has faced headwinds in its key markets in 2016. In the UK, uncertainty caused by the EU referendum has led to delays in decision making by both public and private sector customers. In Germany, the ramp up of the sales force has been held back by the competitive job market which has made it difficult to attract high quality hires within the desired timeframe.
2016 Full year:
Basware's organic revenue growth at constant currencies in 2016 was expected to be 5 percent or more. The company now expects its growth trajectory to be delayed because of the revenue mix effects outlined above. As a result, organic growth at constant currencies is expected to be flat for 2016.
Revenues from SaaS and Basware's network are expected to continue to grow for the rest of 2016.
Adjusted EBITDA for 2016 is expected to be around breakeven, in line with original guidance.
The growth related operating investments are expected to amount to approximately 20 million euros in 2016 including Verian.
Comments from Vesa Tykkyläinen, CEO of Basware:
"The revision to our 2016 guidance is being driven by the business transformation that Basware continues to undergo, which is in line with our strategy. Basware's cloud revenues have been growing well in 2016 and will continue to grow. In the long run it is this which will deliver value to our shareholders."
"Basware has a great strategy and we are a leader in an industry with significant market growth potential. It is now down to execution on our part to capture that potential. I want Basware to be an efficient, best in class cloud services company. I have today separately announced a number of actions to better execute our strategy and to ensure that Basware continues to strengthen its position as the leader in networked purchase to pay solutions including e-invoicing and financing services."
For more information, please contact:
Investor enquiries: Ben Selby, Head of Investor Relations, Basware Corporation Tel. +358 50 305 8077, ben.selby@basware.com
Media enquiries: Sirje Ahvenlampi-Hyvönen, Communications Director, Basware Corporation Tel. +358 50 557 3822, sirje.ahvenlampi@basware.com
Distribution: Nasdaq Helsinki Key media www.basware.com/investors
About Basware: Basware (Nasdaq: BAS1V) is the global leader in providing networked purchase-to-pay solutions, e-invoicing and innovative financing services. Basware's commerce and financing network connects businesses in over 100 countries and territories around the globe. As the largest open business network in the world, Basware provides scale and reach for organizations of all sizes, enabling them to grow their business and unlock value across their operations by simplifying and streamlining financial processes. Small and large companies around the world achieve significant cost savings, more flexible payment terms, greater efficiencies and closer relationships with their suppliers. Find out more at www.basware.com/investors .
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