CREALOGIX records over CHF 100M in sales for the first time. The successful doubling of the "Software as a Service" (SaaS) revenue share temporarily slows profitability. Freitag, 02. August 2019 - 07:00

Media release

Zurich, 2 August 2019

Preliminary announcement of 2018/19 annual results

Growth in recurring revenues from multi-year subscriptions (SaaS) for digital banking products has exceeded expectations. The change in the licensing model will have a clear negative impact on profitability in the short term, however in the long term, it will lead to greater stability in revenues and a sustained increase in profitability.

CREALOGIX is confident that this intended transition will have a positive effect from the 2020/21 financial year onwards in the form of solid cashflow levels and double-digit EBITDA margins.

CREALOGIX continues to grow and to expand internationally. The digital banking software specialist can report the following preliminary results for the 2018/19 financial year:

• Sales increased by 17% per cent to CHF 101.9M. This equates to a growth of 18% in local currencies.
• At CHF 1.9M, profitability (EBITDA) fell below previous year's level (CHF 7M). The main reason for this is the intended transition from a traditional initial licence model to a SaaS/rental model, which will lead to a sustained increase in future recurring incomes. Had there not been a transition to a SaaS-based model in the past financial year, revenue and EBITDA would have been approximately CHF 7M higher.
• Furthermore, the high level of uncertainty surrounding Brexit had a pronounced negative impact on the UK business.
• Losses amounted to CHF 6.3M (in the previous year, there was a net profit CHF 0.9M). However, this includes CHF 5.4M in goodwill amortisation.

CREALOGIX also reports a positive outlook for the future thanks to new major customer wins in the international banking sector and high market demand.

Full annual results for 2018/19 will be published on 17 September 2019.

About CREALOGIX

The CREALOGIX Group is a Swiss Fintech 100 company and is among the global market leaders in digital banking. CREALOGIX develops and implements innovative fintech solutions for the financial institutions of tomorrow. Using digital solutions from CREALOGIX, banks, wealth managers, and other financial institutions can better respond to evolving customer needs in the area of digital transformation, enabling them to hold their ground in a very demanding and dynamic market and remain ahead of their competitors. The group, founded in 1996, has more than 700 employees worldwide. The shares of CREALOGIX Group (CLXN) are traded on the SIX Swiss Exchange.

The economic projections and predictions contained in this information relate to future facts. Such projections and predictions are subject to risks, uncertainties and changes which cannot be foreseen and which are beyond the control of CREALOGIX Holding AG. CREALOGIX Holding AG is therefore not in a position to make any representations as to the accuracy of economic projections and predictions or their impact on the financial situation of CREALOGIX Holding AG or the market in the securities of CREALOGIX Holding AG.

This document does not constitute an offer or invitation to subscribe for or purchase any securities. It is not being issued in countries where the public dissemination of the information contained herein may be restricted or prohibited by law. In particular, this document is not being issued in the United States of America and should not be distributed to U.S. persons or publications with a general circulation in the United States. Any non-compliance with such restrictions may result in an infringement of U.S. securities laws. Securities of CREALOGIX Holding AG (’COMPANY’) are not being publicly offered outside of Switzerland. In particular, the securities of the company have not been registered under the U.S. securities laws and may not be offered, sold or delivered within the United States or to U.S. persons absent the registration under or an applicable exemption from the registration requirements of the U.S. securities laws. This document does not constitute a prospectus according to article 652a or article 1156 of the Swiss code of obligations or article 27 et seq. of the SIX Swiss Exchange listing rules.

Contact

Investor Relations

Philippe Wirth, Chief Financial Officer

E-Mail: philippe.wirth@crealogix.com

Tel.: +41 58 404 86 62

Media Relations

Jasmin Epp, Senior Group Communications Manager

E-Mail: jasmin.epp@crealogix.com

Tel.: +41 58 404 86 52