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Because ACQ Bure AB ("ACQ") communicated on April 19, 2023, that ACQ intends to merge with Yubico AB ("Yubico"), selected consolidated financial information for Yubico for the period January – March 2023 is published today. In addition, a guidance is published regarding Yubico's expected financial performance during the fiscal year 2023.
Quarterly data for Yubico, Q1 2023
- Bookings increased by 14.9 per cent to SEK 350.0 (304.6) million, corresponding to an increase of 3.0 per cent in local currencies.
- Subscription bookings represents 7.7 (4.6) per cent of total bookings.
- Net sales increased by 26.9 per cent to SEK 419.0 (330.2) million, corresponding to an increase of 17.3 per cent in local currencies.
- Subscription sales represents 12.5 (5.8) per cent of net sales.
- Gross profit amounted to SEK 361.8 (278.1) million, corresponding to a gross margin of 86.3 (84.2) per cent.
- EBITDA amounted to SEK 76.4 (15.2) million, corresponding to an EBITDA margin of 18.2 (4.6) per cent.
- EBIT amounted to SEK 73.4 (12.6) million, corresponding to an EBIT margin of 17.5 (3.8) per cent.
- ARR (annual recurring revenue) amounted to SEK 219.3 (131.0) million, an increase of 67.4 per cent.
Guidance for 2023
- Booking growth for full year 2023 may come somewhat short of the long-term financial target.
- EBIT-margin for 2023 is expected to be 5-15 per cent, depending on development of subscription sales.
Mattias Danielsson, CEO of Yubico:
"The development during the first quarter of the year was fully in line with our expectations, with growth and good profitability. It is very gratifying that we managed to show growth in the first quarter of 2023, as Q1 was a strong quarter in 2022 as well.
Looking at the second quarter, it should be noted that Yubico received a very large order – amounting to 39% of the quarter's bookings – in Q2 2022. Given this, Q2 2023 will likely show negative growth compared to Q2 2022. Although we anticipate good growth in the second half of 2023, overall for the full year 2023 we expect growth in order intake somewhat short of the long-term target. Profitability is also expected to be somewhat below the long-term target.
In the long-term our financial growth targets are an annual growth in bookings of an average of 25% and 20% EBIT margin.
It feels great to, after having worked for 13 years together with Yubico's founders Stina and Jakob Ehrensvärd, lead Yubico and prepare the company for a public listing via the merger with ACQ. We have never been in a stronger position, we are profitable, demand for our technology is increasing and our position in the cyber security market continues to grow stronger.
A public listing on the Swedish capital market together with ACQ's strong and long-term shareholder base will further raise our quality mark, help us build even stronger structures for growth and contribute to our continued growth journey."
|Selected financial information for Yubico|
|MSEK (unless otherwise stated)||Jan-Mar 2023||Jan-Mar 2022||%||2022|
|Subscription share of bookings (%)||7.7||4.6||15.3|
|Subscription share of net sales (%)||12.5||5.8||9.0|
|Net sales growth (%)||26.9||80.0|
|Net sales growth (adjusted for change in foreign currency) (%)||17.3||60.9|
|Gross margin (%)||86.3||84.2||84.3|
|EBITDA margin (%)||18.2||4.6||14.5|
|Operating profit (EBIT)||73.4||12.6||483.0||215.3|
|EBIT margin (%)||17.5||3.8||13.8|
ACQ's board of directors has, together with Yubico's board of directors, considered appropriate financial targets for the combined company and have agreed on the following targets in the long-term (within 5 years):
- Growth: Target of annual growth in bookings (order intake) of 25 per cent on average.
- Profitability: Target of 20 per cent EBIT margin.
- Dividend policy: For the foreseeable future, the board of directors of the combined company will primarily use generated cash flow for investing in continued growth.
Explanation of guidance for 2023
- Booking growth for the full year 2023 may come somewhat short of the long-term financial target.
- EBIT-margin for 2023 is expected to be 5-15 per cent, depending on the development of subscription sales.
Yubico strives to increase the share of subscriptions, which normally have a contract period of three years. Net sales in such contracts are evenly booked over the three-year period, while direct costs are booked after they are incurred, which means approximately 70 per cent year one and 15 per cent per year the following two years. This means that EBIT is lower year one and higher the following two years compared to the perpetual business model, where 100 per cent of net sales and cost are booked when delivered.
ACQ and Yubico will hold a webcast/conference call today, May 4, 2023, at 09:00 CEST. Henrik Blomquist, CEO of ACQ, Mattias Danielsson, CEO of Yubico and Camilla Öberg, CFO of Yubico, will present and answer questions.
To participate in the conference, click on the following link https://ir.financialhearings.com/acq-yubico-q1-2023. Via the webcast you can ask written questions. If you wish to ask questions verbally, please register on the following link: https://conference.financialhearings.com/teleconference/?id=5001445
Financial reports and other company information are available at www.ACQ.se
The interim report January–June 2023 will be published on 11 August 2023. ACQ Bure will publish extensive financial information for Yubico in conjunction with this report.
Indicative timetable for the merger of ACQ and Yubico ("the Transaction")
|17 May 2023||The notice to the extraordinary general meeting in ACQ that is to resolve upon the Transaction is published.|
|30 May 2023||The information brochure regarding the Transaction is published.|
|20 June 2023||Extraordinary general meetings in ACQ and Yubico.|
|During the third quarter 2023||The company description is published.|
|During the third quarter 2023||Nasdaq Stockholm approves listing of the Combined Company’s shares on Nasdaq First North Growth Market.|
|During the third quarter 2023||Completion of the Transaction.|
|During the third quarter 2023||First day of trading in the Combined Company’s shares on Nasdaq First North Growth Market. Last day of trading in ACQ’s shares on Nasdaq Stockholm.|
Alternative performance measures
The alternative performance measures (APM) set out in the section “Selected financial information” in the above press release are not defined under K3. These APMs are used by Yubico as Yubico believes that these APMs provide valuable information for investors and other stakeholders to evaluate the financial performance of Yubico. As not all companies calculate financial measures in the same way, they are not always comparable with similar measures used by other companies. These measures should therefore not be regarded as a substitute for measures defined under K3. The APMs have been extracted both from the financial statements and Yubico’s internal accounting system that have not been audited.
The use of APMs is useful to investors in order to provide investors with insight into management’s decision-making, since management uses these measures to run the business and make financial, strategic, and operating decisions. APMs provide investors with additional information that enables a comparison of year-over-year and in many cases, inclusion of APMs may also facilitate comparison with other companies’ corresponding APMs.
|APM not defined in accordance with K3||Definition||Purpose|
|Bookings||Total value of bookings received during the period.||Measure used to analyse the magnitude of increase in bookings.|
|Subscription bookings||Total value of subscription bookings received during the period.||Measure used to analyse the expected volume of future revenue related to subscription.|
|Subscription share of bookings||Subscription bookings in relation to total bookings.||Measure to understand the relation of subscription bookings in relation to total bookings.|
|Subscription sales||Net sales related to subscription.||Measure to understand the magnitude of subscription revenue.|
|Subscription share of net sales||Subscription sales in relation to net sales.||Measure to analyse the magnitude of the subscriptions in relation to net sales.|
|Net sales growth||Annual growth in net sales.||Used to measure the net sales growth in the company.|
|Net sales growth (adjusted for change in foreign currency)||Net sales growth adjusted for changes in foreign currency rates.||Used to measure comparable net sales growth excluding translation effects into foreign currency.|
|Gross profit||Net sales less cost of goods for resale.||Show the company’s profitability from operations.|
|Gross margin||Gross profit as a per centage of net sales.||The measure is a complement to the gross profit, which only states the change in absolute figures (when different periods are compared). Gross margin is an indication of the company’s gross earnings capacity, over time.|
|EBITDA||Operating profit/loss (EBIT) before depreciation, amortization, and impairments.||The measure is used since it shows the profitability before financial items, taxes, depreciation, amortization, and impairments and is used to analyse the groups operating activities.|
|EBITDA margin||Operating profit/loss (EBIT) before depreciation, amortization, and impairments in relation to net sales.||The measure is a complement to the EBITDA, which only states the change in absolute figures (when different periods are compared). EBITDA margin is an indication of the profitability of operations in relation to net sales, over time.|
|EBIT margin||Operating profit/loss (EBIT) in relation to net sales.||The measure is a complement to the EBIT (Operating profit/loss), which only states the change in absolute figures (when different periods are compared). EBIT margin is used to provide understanding of the Group’s financial performance both short and long-term.|
|Net cash||Cash and cash equivalents less interest-bearing liabilities (liabilities to credit institutions).||Used to assess the company’s ability to meet its financial obligations and level of debt.|
|Annual Recurring Revenue (ARR)||Total contract value related to subscription contracts as of the end of the reporting period, excluding one-time fees, divided by the term of the contract translated based on the average foreign exchange rate on a rolling 12-month basis.||Management follows this measure as it is important to understand annualized revenue expected from subscribers.|