BIMobject AB (FRA:BOJB) Q3 2024 Earnings Call Highlights: Strong ARR Growth and First Positive ...

GuruFocus News
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In This Article:

  • ARR Growth: 7% growth in constant currency.

  • Net Sales Growth: 5% increase in turnover.

  • EBITDA: Second profitable quarter, slightly better than the same quarter last year.

  • Cash Position: Over SEK 200 million in liquid assets.

  • Recurring Revenue: 8% year-over-year growth, 3% quarter-over-quarter growth, totaling SEK 34.6 million.

  • Recurring Revenue Share: 80% of total net sales.

  • Services Revenue: Flat quarter-over-quarter, down 7% year-over-year at SEK 7.6 million.

  • Personnel Costs: Increased by 6% year-over-year due to more employees.

  • EBITDA Margin: Positive SEK 1 million, equating to 2% of net sales.

  • Net Income: First quarter with positive net income in BIMobject's history.

Release Date: October 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • BIMobject AB (FRA:BOJB) reported a continuous growth in Annual Recurring Revenue (ARR) of around 7% in constant currency.

  • The company achieved a turnover growth on net sales of 5% and reported its second profitable quarter in terms of EBITDA.

  • BIMobject AB (FRA:BOJB) maintains a strong cash position with over SEK 200 million in liquid assets.

  • The company is shifting to a Platform-as-a-Service model, which is expected to enhance digital product information accessibility in the construction industry.

  • Positive traction in the Nordics with over 6,000 registered projects on the Prodikt platform, indicating successful deployment of new solutions.

Negative Points

  • The company is experiencing higher-than-normal levels of churn, particularly in the U.S. and EMEA markets.

  • Despite growth, the building industry faces challenges with digitalization, productivity, and climate impact, which could affect BIMobject AB (FRA:BOJB)'s market penetration.

  • The company anticipates substantial development efforts and complexity in preparing products for international markets due to varying standards and regulations.

  • There is uncertainty in the building sector's market environment, which could impact BIMobject AB (FRA:BOJB)'s growth timeline.

  • The company plans to increase the number of employees, which may lead to higher operational costs despite efforts to optimize expenses.

Q & A Highlights

Q: Given the uncertain market environment in the building sector, what is your view on your ability to grow? And when would that growth come? A: Martin Lindh, CEO: We see clear indications of a large interest in our solutions internationally. However, the timing of growth is hard to predict due to varying market readiness and regulatory environments. We are working on developing scalable solutions for international markets, and we will update on progress in future quarterly presentations.

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