Cloud services continues to dominate Visma’s growth in Q3

Visma delivers a strong third quarter and maintains the solid growth rate. Cloud related software and services continued to be the strongest driver of growth with a historically high SaaS revenue exceeding NOK 200 million for the first time.

Visma had a strong third quarter and maintained its solid growth rate. Visma delivered revenue of NOK 1,615 million, compared with NOK 1,516 during the same period last year, an increase of 6,6 percent.

The EBITDA came in at NOK 399 million, compared to NOK 363 million in the third quarter 2013, representing an increase of 10,1 percent, yielding a record EBITDA margin of 24,7 percent.

Net cash flow from operations after tax at the end of the first three quarters of 2014 was NOK 1,088 million versus NOK 878 million in 2013.

Demand for Cloud solutions steadily increasing

Visma is experiencing an increasing demand for Cloud services. The growth in SaaS (Software as a Service) revenue was 36 percent in the third quarter 2014 compared to Q3 2013.

SaaS and SaaS transactions continue to be the strongest driver of growth in Visma and revenue exceeded a quarterly NOK 200 million for the first time reaching NOK 206 million.

Visma is steadily launching new SaaS products, and the heavy investment in SaaS continues. Services like procurement, accounting, payroll, debt collection and software consultancy are increasingly based on SaaS.

The customers increasingly prefer subscription type of cost-models instead of up-front investments, and Visma is in the middle of a process of moving all our activities to the Cloud.

– More and more of our customers are using Cloud-services and the SaaS revenue is increasing every quarter. Both within R&D and in relation to acquisition strategies, we are focusing on Cloud solutions, says Øystein Moan, CEO of Visma.

Acquisition activity

Visma continues the strategy of organic and acquisitive growth. This quarter Visma has completed the acquisition of Info Consensus.

– Info Consensus is the leading provider of on-line regulatory information and training services to the education and elderly care sectors in Norway. This acquisition further strengthens Visma’s position as the leading software provider to Norwegian municipalities, Moan says.

Visma has several interesting acquisition dialogues in process, some of which may be signed during the fourth quarter of 2014.