Breukelen, 3 August 2022, 08.00 CEST – TIE Kinetix, a leader in 100% supply chain digitalization, announces its trading update for the third quarter of financial year 2022 today.
2022 Plan: investing to accelerate growth of our 100% SaaS business
Effective October 1, 2021 (the start of the Company's financial year 2022) management 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. As a consequence of this direction, the Company is stepping up its 2022 expenditures and investments in new staff, in marketing programs, and in sales and onboarding to lay the foundation for accelerated growth in all of its markets. This is geared towards one thing: accelerating organic revenue growth.
To further accelerate organic growth, we are expanding our indirect sales channel. The spearhead of our indirect sales strategy is our worldwide partnership with major ERP vendors. In addition, we are partnering with local ERPs in Europe and North America.
First nine months on 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 nine months of the year, staff levels increased with over 20%, from 104 FTE to 127 FTE as at 30 June 2022. The Company has very successfully recruited and attracted top talent in a very tense labor market. All new staff is trained through the modules in our FLOW Academy upon entry in the Company.
While in an early stage, the actions of the customer success teams are already becoming visible in higher account revenue in the accounts managed by these teams. Although we were initially not planning to see increased business sales before 2023, we are excited to already report new business. New customer HG International BV, a leading European supplier specialized in cleaning and maintenance products, signed a five year contract in June with one of our top new sales talents that only recently came on board. After quarter-end, in July, we signed a new contract with FUJIFILM Europe BV, a leading manufacturer of, among others, high-quality (photo)graphic products.
SaaS revenues have grown by 15% in the first nine months to € 8,187k (YTD Q3 2021: € 7,124k).
Jan Sundelin, CEO, TIE Kinetix says: “In the past quarter, we have continued executing the high-growth plan that we had set in motion at the start of this year. The plan called for increased investments in marketing and staff and in new indirect sales channels to step up SaaS growth beyond historical growth rates. During the first nine months, we have been able to bring a significant influx of new staff. This includes some very experienced sales staff, as well as partner managers who will be further rolling out our channel strategy, where we have partnered with major ERP vendors Microsoft and Oracle. Obviously, it will take time for us to see the full effects of new business sales in our order intake, though the first results so far look promising. This is, of course, also driven by ambitious marketing plans in the Netherlands and Germany and our channel strategy. We continue to explore non-organic growth options in the German (and later on) in the French markets, with the aim to scale the use of our excellent FLOW platform towards many more customers and their trading partners.”
You can download the full press release in PDF here: TIE Kinetix Trading Update Q3 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 1 billion documents through FLOW each year—the equivalent of 100,000 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