Nov 22, 2018

USU Software AG announces figures for third quarter and first nine months

USU Software AG (ISIN DE000A0BVU28) and its subsidiaries (hereinafter also referred to as the “USU Group” or “USU”) significantly improved their profitability compared with the previous year in the third quarter of 2018. EBITDA doubled from EUR 972 thousand in the third quarter of 2017 to EUR 1,922 thousand in Q3 2018, while EBIT rose by 350% to EUR 1,221 thousand in the same period (Q3 2017: EUR 274 thousand). The USU Group’s consolidated net profit (IFRS) increased from EUR 20 thousand in the same quarter of the previous year to EUR 946 thousand in the quarter under review. This corresponds to earnings per share of EUR 0.09 (Q3 2017: EUR 0.00). USU also almost doubled its earnings before interest and taxes adjusted for extraordinary effects due to acquisitions (“adjusted EBIT“) to EUR 1,566 thousand in the third quarter of 2018 (Q3 2017: EUR 785 thousand). This positive performance was driven primarily by year-on-year sales growth of 12.3% to EUR 22,504 thousand (Q3 2017: EUR 20,037 thousand), which was attributable to strong software-as-a-service (“SaaS”) business and rising consulting income in particular. 

In the first nine months of 2018, USU increased its sales by 9.1% year-on-year to EUR 64,278 thousand (Q1-Q3 2017: EUR 59,908 thousand). The USU Group benefited from the international markets and domestic business alike, with sales generated outside Germany totaling EUR 17,833 thousand (Q1-Q3 2017: EUR 16,220 thousand). This represents an increase of 9.9% on the same period of the previous year. Accordingly, USU increased the share of consolidated sales generated abroad from 27.5% in the previous year to 27.7% in the first nine months of 2018.

The operating cost base of the USU Group increased by 9.6% to EUR 62,734 thousand in the first nine months of 2018 (Q1-Q3 2017: EUR 57,236 thousand). In particular, this reflects the increased investment outside Germany in order to successfully implement the medium-term targets. This also resulted in the expansion of the USU Group’s workforce by 9.1% to 703 employees as of September 30, 2018 (September 30, 2017: 661).

The successful third quarter meant that adjusted EBIT for the first nine months of 2018 was positive at EUR 1,821 thousand (Q1-Q3 2017: EUR 2,350 thousand), although the aforementioned investments in the future meant that it fell short of the prior-year figure. At the same time, USU increased its EBITDA by 4.3% to EUR 2,868 thousand (Q1-Q3 2017: EUR 2,749 thousand) and its EBIT by 7.2% to EUR 749 thousand (Q1-Q3 2017: EUR 699 thousand). USU improved its consolidated net profit from EUR -33 thousand to EUR 268 thousand in the same period, thereby returning to profitability as announced. In line with this, earnings per share amounted to EUR 0.03 (Q1-Q3 2017: EUR 0.00).

The Management Board anticipates sustained strong business performance in the current final quarter of the year and is therefore confirming its forecast for the USU Group of an increase in sales to between EUR 93 million and EUR 98 million in 2018 (2017: EUR 84.4 million). The principal key performance indicator, adjusted EBIT, is expected to see above-average growth to between EUR 7.5 million and EUR 10.0 million (2017: EUR 6.1 million). However, the latter target will depend on the level of license income in the final quarter, and hence also on the relative proportions of on-premises and SaaS contracts concluded. Sales are expected to rise to EUR 140 million by the end of 2021, including around EUR 15 million in growth through acquisitions, while adjusted EBIT is set to increase further to EUR 20 million.

The full nine-month report for 2018 is available for download on USU Software AG’s website. The Management Board will present further details of the Group’s business development at 10:00 a.m. on November 28, 2018 at the Sheraton Frankfurt Airport Hotel and Conference Center (Hugo-Eckener-Ring 15, 60594 Frankfurt/Main), Madrid room, as part of the “German Equity Forum 2018” analyst and investor conference.

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