USU Software AG Reports Higher Profits


DGAP-News: USU Software AG / Keyword (s): Quarterly Results / 9 Months Figures

USU Software AG Reports Higher Profits

18.11.2021 / 09:00
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  • 8.4% sales growth in Q3 2021
  • Double adjusted profit
  • Nine-month figures point to positive development
  • Increased liquidity and equity ratio
  • Orders on hand remain high
  • Confirmed sales and profit planning

In the third quarter of 2021, USU Software AG and its subsidiaries (hereinafter also referred to as the “USU Group” or “USU”) again benefited from recurring revenue growth and strong licensing activity. USU thus increased its consolidated revenue (IFRS) by 8.4% year-on-year to 27.9 million euros in the third quarter of 2021 (Q3 2020: 25.8 million euros). License revenues grew above average by 20.5% to 3.0 million euros (Q3 2020: 2.5 million euros). At the same time, USU also increased its SaaS sales by 13.5%, above average, to 2.8 million euros (Q3 2020: 2.4 million euros). Thus, recurring revenues (maintenance sales including SaaS revenues) increased by 10.0% year on year to reach 8.8 million euros in the third quarter of 2021 (Q3 2020: 8.0 million euros). USU also increased its consulting revenue by 5.2% to € 15.8 million (Q3 2020: € 15.0 million).
At the same time, the cost base of the USU group only increased by 4.8% to reach 25.8 million euros (Q3 2020: 24.6 million euros). This means that the incomes have improved considerably. USU increased its earnings before interest, taxes, depreciation and amortization (EBITDA) by 69.8% year-on-year to 3.7 million euros (Q3 2020: 2.2 million euros). Profit before interest and taxes (EBIT) amounted to 2.5 million euros (Q3 2020: 1.1 million euros), which corresponds to an increase of 121.8%.
Net profit for the period after interest and taxes increased 170.5% to 2.3 million euros (Q3 2020: 0.9 million euros). This corresponds to earnings per share of 0.22 EUR (Q3 2020: 0.08 EUR).
USU’s profit before interest and taxes adjusted for extraordinary effects of acquisitions (adjusted EBIT) also doubled, from 1.3 million euros for the same period of the previous year to 2.7 million euros . As a result, USU’s profit margin on Adjusted EBIT increased from 5.0% in the third quarter of 2020 to 9.5%.

The USU group also recorded a positive operational performance in the first nine months of the year. USU’s consolidated sales increased 5.1% year-on-year to € 81.9 million in the first three quarters (Q1-Q3 2020: € 77.9 million). This was largely due to new national digitization projects. Thus, USU increased its sales in Germany by 10.2% to 62.7 million euros (Q1-Q3 2020: 56.9 million euros), while the impact of the coronavirus led to a decrease in its international sales of 8.7% compared to the extremely positive period of the previous year, for an amount of 19.1 million euros (Q1-Q3 2020: 21.0 million euros).
Broken down by sales type, USU saw a particularly strong year-over-year increase in consulting revenue of 7.2% to € 47.8 million thanks to new orders acquired and existing orders in progress ( Q1-Q3 2020: 44.6 million euros). At the same time, it benefited from the sustained growth in cloud and maintenance activities. Maintenance sales, including SaaS business sales, increased 6.5% year-on-year to € 25.4 million (Q1-Q3 2020: € 23.8 million euros), of which 7.9 million euros (Q1-Q3 2020: 7.0 million euros) were attributable to SaaS sales alone. This represents an increase of 12.8% compared to the previous year. Due to the relatively high share of new contracts attributable to SaaS activities, license sales in the first nine months of 2021 decreased by 6.3% compared to the previous year to 7.8 million euros ( Q1-Q3 2020: 8.3 million euros).
Due to the significant expansion of high-margin recurring revenues and the below-average increase in Group expenses of 3.2% to 76.1 million euros (Q1-Q3 2020: 73.7 million d ‘euros), USU has significantly improved its profitability compared to the previous year. EBITDA increased 25.6% to 10.4 million euros (Q1-Q3 2020: 8.3 million euros), while EBIT increased 48.7% to 6.9 million euros (Q1-Q3 2020: 4.6 million euros).
USU’s consolidated profits also improved significantly by 55.2% year-on-year to 6.1 million euros in the first nine months of 2021 (Q1-Q3 2020: 4.0 million euros ). This corresponds to earnings per share of 0.58 EUR (Q1-Q3 2020: 0.38 EUR).

In addition, USU increased its Adjusted EBIT by 39.3% year-on-year to 7.2 million euros in the first nine months of 2021 (Q1-Q3 2020: 5.2 million euros). As a result, the profit margin on the basis of adjusted EBIT improved from 6.7% in the previous year to 8.8% during the period considered. At the same time, the adjusted consolidated profit increased by 44.0% to 6.5 million euros (Q1-Q3 2020: 4.5 million euros). Adjusted earnings per share thus fell from 0.43 EUR the previous year to 0.61 EUR.
With an equity ratio of 55.0% (December 31, 2020: 53.5%), the Group’s significant liquidity which increased by 6.4% to € 19.7 million (December 31, 2020: 18, 5 million euros) and no debt to banks, the USU group still has extremely solid and secure financing.
For the whole of 2021, the executive committee expects the USU group to record slight sales growth and improved adjusted EBITDA to at least 9-10 million euros. The main contributing factor will be a strong SaaS business. A key indicator supporting this forecast is the level of Group-wide orders in stock, which increased by 6.9% to EUR 64.6 million during the reference period. (September 30, 2020: 60.4 million euros). In addition, the Management Board anticipates positive effects and increased efficiency within the framework of the implementation of the “One USU” strategy. The Management Board also confirms the current medium-term planning, which foresees an average organic sales growth of 10% in the coming years and an increase in the operating margin on adjusted EBIT of between 13% and 15% by 2024.

This press release is available at www.usu.com.

USU Software AG

As a leading provider of software and services for IT and customer service management, USU empowers businesses to master the demands of today’s digital world. Global organizations use our solutions to lower costs, become more agile, and reduce risk – with smarter services, smoother workflows, and better collaboration. With over 40 years of experience and locations around the world, the USU team takes its clients to the future.

In addition to USU GmbH, which was founded in 1977, the subsidiaries USU Technologies GmbH, USU Solutions GmbH, USU Solutions Inc. and USU SAS also belong to USU Software AG (ISIN DE 000A0BVU28), which is listed in the Prime Standard of the German Stock Exchange.

More information: www.usu.com.

Contact:
USU Software AG
Business communication
Dr Thomas Gerick
Phone. : +49 (0) 71 41 – 48 67 440
Fax: +49 (0) 71 41 – 48 67 909
Email: thomas.gerick@usu.com

USU Software AG
Investor Relations
Falk sorge
Spitalhof
D-71696 Möglingen
Phone. : +49 (0) 71 41 – 48 67 351
Fax: +49 (0) 71 41 – 48 67 108
Email: falk.sorge@usu.com

11/18/2021 Broadcast of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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