November 18 - 2020 - Breukelen, the Netherlands at 8 AM CET
Update and full year financial statements
Financial information in this press release is unaudited
Fiscal year 2020 (period Oct. 1, 2019 – Sept. 30, 2020.
The numbers in this table are unaudited and deviate from IFRS 5 (Discontinued Operations). The business divested in 2020 has been included up to the moment of divestment (TCMA until August 22, 2020 and TIE International BV until August 1, 2020). Tables presented in the annex are in compliance with IFRS 5 and exclude TIE International BV for FY 2020 and 2019 (restated).
CEO Jan Sundelin: “there can be no doubt that 2020 has been a memorable year. The pandemic has impacted the everyday life of billions of people. At the same time, the pandemic also emphasized the necessity for companies to adopt a digitization strategy to enable and facilitate working remotely and safely. As a frontrunner of digitization TIE Kinetix has suspended working from its office locations and staff have been working remotely throughout the course of the pandemic. Our order intake in 2020 came in below the record setting 2019 year. But given the pandemic restrictions on travel and meeting, which has affected somewhat our sales to large enterprise level customers, we are satisfied that we have a base for solid growth in 2021. The year 2020 was also the year in which we divested out TCMA business and our GoogleAdwordsForChannel business. Although these applications generated a healthy cash flow, we considered them as no longer instrumental to our business going forward. TIE Kinetix is now focused on solutions to fully digitalize the supply chain with the tools we have in our FLOW platform: EDI, Pdf conversion and our e-invoicing portal solution. Some of the proceeds from the divestiture will be used to invest in our operations and to finance organic growth. At this stage we are prioritizing the creation of a strong basis for growth over bottom line performance“.
TIE Kinetix, the leading provider of Software as a Service managed solutions for supply chain digitization with EDI, pdf conversion and e-invoicing today released the results for its fiscal year 2020, covering the period October 1, 2019 – September 30, 2020. In its fiscal year 2020 financial statements the company mandatorily adopts IFRS 16 for the first time. The first time adoption of IFRS 16 results in FY 2020 opening balance sheet adjustments and adjustments in the FY 2020 income statement, for which reference is made to the annual report form more detailed information.
FLOW is a SaaS based Partner Automation solution that supports organizations with exchanging trading information/documents with their suppliers and with selling through partners. FLOW consists of a platform with applications for EDI, pdf conversion and e-invoicing supported with various Analytics applications.
From time to time, connecting and setting up customers and trading partners to the FLOW portal may require certain (limited) mapping and other set-up activities. Such ‘set-up’ revenues historically have been reported under Consultancy Revenue, recognized with the set-up work performed. As from FY 2019, with the mandatory first time adoption of IFRS 15, set-up revenues are allocated to SaaS revenue and recognized over time with the duration of the SaaS contract (typically 3 years).
In 2020, total revenue (consisting of applications in EDI, Demand Generation and Analytics) amounted to € 17.134k (2019: € 15.307k) included SaaS revenue of € 10.427k (2019: € 8.945k), and maintenance revenue of € 2.639k (2019: € 2.793k). SaaS revenue and maintenance revenue are both subscription-based with 1, 3 or 5 year subscription contracts. FLOW consists of a set of applications, generating fully subscription based revenue. Since the introduction of FLOW in 2016, the company has increased the % of subscription based revenue to over 75%.
Included in the FY 2020 revenue of € 17.134k is an amount of € 2,3 mln. in revenue (approx. 11 months) which the company divested for a consideration of € 6 mln.. The consideration of € 6 million was paid for in cash € 3 mln. upon closing (August 21, 2020) and € 3 mln. was provided as a one year - 10% - fully secured vendor loan to the buyer.
In 2020 we have completed migration programs in France and have further progressed our US migrations with the aim to migrate all of our customers worldwide to the FLOW SaaS offering.
- Divestiture of the TCMA/GoogleAdwordsForChannel business (decrease of € 500k);
- Lower order intake for Analytics/search business (decrease of € 800k). Our Analytics and search business consists of reselling third party applications in SaaS plus consultancy hours to tailor the applications to our customers’ businesses. This business is primarily Germany based and run from our München office. In 2020 the net growth of the business was limited and we have re-trained our consultants to the applications for EDI, pdf conversion and e-invoicing, anticipating higher business volumes.
- Decrease of Integration orders in 2020 (decrease of € 1.800k) compared to record year 2019 in which several high profile enterprise level customers were signed. In the first wave of the pandemic it proved difficult to complete sales cycles with enterprise level customers. Enterprise level customers typically have a variety of stakeholders and decision makers involved in the buying decision and often require physical meetings to complete the buyers journey. In the pandemic travel and physical meetings were restricted which has most likely lead to a delay in decision making for sales opportunities at the enterprise level. Subsequent to our financial year end several enterprise level opportunities closed and sizable orders were booked again.
Consultancy revenue increased to € 3,4 mln (2019: € 3,2 mln) primarily following projects for large customers in Germany and the US. In the divestiture of the TCMA business in the US some operational staff was included. In 2021 we are backfilling vacant positions and we will be strengthening our operations in the US, in France and in the Netherlands.
FLOW is principally run in a SaaS model. Only rarely certain FLOW modules are sold as a license. FLOW license revenue amounted to € 646k (2019: € 350k), and somewhat increased through sales in the US market.
(For the full version of the press release, please download from the link below.)
For further information, please contact:
TIE Kinetix N.V.
Michiel Wolfswinkel (CFO)
Phone: +31 (0) 88 3698060
About TIE Kinetix
At TIE Kinetix, we deliver Software as a Service (SaaS) solutions to companies, governmental institutions, and their suppliers, to help them exchange all business documents electronically and simplify supply chain processes as a result. FLOW Partner Automation, our software platform, empowers its users to engage in smart business exchanges and streamline communication through seamless integration with any existing system. Since 1987, we have supported all EDI and e-invoicing standards and communication methods worldwide. Today, our global team of experts share their knowledge with our 2,500+ customers, facilitating the exchange of over 1 billion documents through FLOW each year.
TIE Kinetix is a public company (Euronext: TIE), and has offices in the Netherlands, France, Germany, Australia, and the United States. For more information, visit www.TIEKinetix.com, and follow us on Linkedin, Twitter, Facebook, Xing, and YouTube.
Submitted by Investor Relations on 11/18/2020