Basware reports solid Purchase-to-Pay growth in 2011

Thursday 26 January, 2012

Strong increase in automation services and net sales

Basware, the leading provider of e-invoicing and purchase-to-pay solutions, announced strong growth in Automation Services of 32.2% compared with 2010, with net sales growth of 4.5% to €107.7 million, in its 2011 financial results. Operating profit decreased to €12.2 million, which included a restructuring provision of €1.2 million due to streamlining measures.




Transaction volume in 2011 grew by 53% to 20.8 million, and recurring revenue accounted for 48.9% of net sales. Basware saw the largest growth in Finland and Scandinavia, with a 4.5% and 8.7% increase in net sales respectively. Maintenance revenue for 2011 increased by 8.9% compared with 2010, accounting for 33.6% of net sales. Professional Services revenue increased by 4.5%, accounting for 31.7% of net sales. 


In the fourth quarter, Basware saw a slight growth in net sales to €30 million, a growth of 0.3%. Operating profit in the quarter decreased by 30%, having included the restructuring provision of €1.2 million. Automation Services, including SaaS and e-invoicing grew by 17.9%, with transaction volumes processed within the Automation Services business reaching 6.2 million in Q4. Basware estimates revenue for existing automation services agreements over the next 12 months to be €18.3 million, a growth of 6.2%.


In Q4, license sales decreased by 16.3%, as sales of SEPA (Single European Payments Area) related banking software decreased by 48.5% as the majority of customers had already implemented the SEPA update. Maintenance revenue in Q4 increased by 7.2%, accounting for 31% of net sales.


2011 also saw the launch of a number of new services from Basware, with a new e-invoicing service for consumers for the Finnish market, developed in co-operation with Nordea Bank. Additionally, Basware introduced InvoiceOut, an accounts payable ledger outsourcing service and Catalog Service. Basware will launch its next generation of software and services in the first quarter of 2012. Basware also expects to see a moderate growth in the number of R&D personnel in 2012.


Esa Tihilä, CEO, Basware, comments: “During 2011, we continued to execute on our strategy set out earlier in the year, focusing heavily on developing a services led strategy. During the year, Basware implemented streamlining measures to increase its focus on the service business, as well as supporting opportunities for future investment. Automation services and transaction volumes have shown continuous growth, positively reinforcing Basware’s long-term strategy. Figures are slightly lower compared with Q4 in 2010, as 2010 saw an exceptional number of opening fees for large deals.”


“In 2012, Basware will undergo a transformation from a software company to a services-led company, which will change our methods, solutions and services. Basware’s ultimate strategic objective is to become the world’s leading e-invoicing solution provider.  With the acquisition of a German e-invoicing network, First Businesspost GmbH, in January 2012, we will be able to further enhance our portfolio with innovative technology to benefit to our customers globally.”


Basware expects its net sales to grow from 2011, and operating profit for 2012 is expected to be €8-18 million.