Formpipe: Weak licenses, underlying growth
The sales of traditional licenses fell to SEK 5.0m, which was approximately half of what we expected. Due to its high margins, the decline had a large impact on adj. EBITDA, which came in at SEK 14.0m (17.2), while our forecast was SEK 18.2m. Besides the ongoing transition towards SaaS, management sees a negative effect on license sales following the Swedish election.
However, Formpipe’s share of recurring revenue continues to increase. Support & Maintenance and SaaS grew by 15% YoY and amounted to 62% (52) of sales in Q1..