Breukelen, the Netherlands – May 11, 2022 at 8 AM CEST – TIE Kinetix, a leader in 100% supply chain digitalization, announces its interim financial results for the first half year of FY 2022 today.
2022 Plan: investing to accelerate growth of our 100% SaaS business
Effective October 1, 2021 management has decided to direct the Company's business model entirely to the delivery and use of its SaaS solution called FLOW. This strengthens the position of the Company as a 100% SaaS company with a focus on long term subscription contracts and annual recurring revenue. The focus on SaaS has also been reflected in the internal organization of the Company with the introduction of new roles and teams (Customer success and New business).
To add to our goal of accelerating organic revenue growth, we will be expanding our indirect sales channel. The spearhead of our indirect sales strategy will be our worldwide partnerships with major ERP vendors. In addition, we will be partnering with local ERPs in Europe and North America.
With respect to acquisitive growth, Management is actively looking for opportunities in the German market that will provide a greater customer base access to the benefits provided by our SaaS solutions.
First six months results delivered on 2022 plan
Management is proud to be able to report that the expansion of the Company's staff and resources is on plan. In the first half year, staff levels increased with 20% from 104 FTE to 124 FTE as at 31 March 2021. The Company has actively recruited and attracted top talent in a very tight labor market. In a very early stage the actions of the customer success teams are already becoming visible in higher account revenue in the accounts managed by these teams. We are planning for increased new business sales in 2023.
In the first six months we have focused our channel activity on Microsoft (and affiliated companies) and Oracle. We are happy to report that as a result, FLOW has gained the status of preferred solution for use with Microsoft's Dynamics 365 ERP system in Microsoft's AppSource. In addition, TIE Kinetix has been nominated Oracle's strategic partner for supply chain digitalization, with FLOW being sold through Oracle's Cloud Marketplace. Management is planning to step up channel sales in the second half of 2022 and beyond.
SaaS revenues have grown by 14% in the first six months to € 5,366k (H1 2021: € 4,716k).
Jan Sundelin, CEO, TIE Kinetix says: “In the first half year of 2022, we have embarked on our high growth plan. The plan calls for increased investments in marketing and staff and in new indirect sales channels to step up SaaS growth beyond historical growth rates. I am delighted to see that we have been able to bring a significant influx of new staff over the first half year. Our customer success teams and new business teams have been formed and will drive us in our operations as a true SaaS-company.”
You can download the full press release in PDF here: TIE Kinetix Half Year Report 2022
Cautionary statement regarding forward-looking information
This document may contain expectations about the financial state of affairs and results of the activities of TIE Kinetix as well as certain related plans and objectives, and may be expressed in a variety of ways, such as ‘expects’, ‘projects’, ‘anticipates’, ‘intends’ or similar words. TIE Kinetix has based these forward-looking statements on its current expectations and projections about future events. Such expectations for the future are naturally associated with risks and uncertainties because they relate to future events, and as such depend on certain circumstances that may not arise in future. Various factors may cause real results and developments to deviate considerably from explicitly or implicitly made statements about future expectations. Such factors may for instance be changes in expenditure by companies in important markets, in statutory changes and changes in financial markets, in the salary levels of employees, in future borrowing costs, in future take-overs or divestitures and the pace of technological developments. TIE Kinetix therefore cannot guarantee that the expectations will be realized. TIE Kinetix also refuses to accept any obligation to update statements made in this document.
About TIE Kinetix
At TIE Kinetix, we help companies of all sizes achieve their digitalization goals. From 1% to 100% or anywhere in between, our cloud-native FLOW Partner Automation platform is designed to completely eliminate paper from the supply chain, enabling our customers to focus on three corporate initiatives that drive true organizational change: business process efficiency, compliance, and corporate social responsibility (CSR).
We believe that digitalization (not digitization) is the future. We believe in conscious development, and we believe in moving ourselves and our customers forward. More than 2,500 companies have chosen TIE Kinetix to support their EDI, e-invoicing, and general digitalization projects, and we proudly facilitate the exchange of over 81 million documents through FLOW each year—the equivalent of 10,000 trees saved.
Founded in 1987, TIE Kinetix is a public company (Euronext: TIE) with offices in the Netherlands (HQ), France, Germany, Australia, and the United States. For more information, visit www.TIEKinetix.com, and follow us on LinkedIn, Twitter, Facebook, Xing, and YouTube.
For more information please contact:
TIE Kinetix N.V.
Michiel Wolfswinkel, CFO
De Corridor 5d
3621 ZA Breukelen
T: +31 (0) 88 3698060