SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020
Company Announcement no. 39/2020
Q3 2020 highlights:
- In Q3 2020, four new SimCorp Dimension deals were signed, of which
- Two deals were included in order intake and revenue
- One deal was included in order intake, but revenue recognition has been deferred
- For one deal, both order intake and revenue recognition have been deferred.
- Order intake was EUR 21.7m, an increase of EUR 2.6m or 13.6% compared with Q3 2019.
- Reported revenue was EUR 100.2m, a decrease of 14.7% compared with Q3 2019, due to a very strong Q3 2019 and revenue recognition of two new license deals being deferred.
- EBIT was EUR 22.4m and EBIT margin was 22.3% compared with EBIT of EUR 35.2m and EBIT margin of 30.0% in Q3 2019.
- Free cash flow was EUR 17.7m, a decrease of 16.7% compared with Q3 2019.
- On August 12, SimCorp announced that it had completed the next phase in its cloud transformation, now offering SimCorp Dimension as a Service, on Microsoft Azure.
9M 2020 highlights:
- In 9M 2020, seven new SimCorp Dimension and three new stand-alone SimCorp Coric license deals were signed, of which
- Six deals were included in order intake and revenue
- One deal was included in order intake, but revenue recognition has been deferred
- For three deals, both order intake and revenue recognition have been deferred.
- Order intake was EUR 58.5m, a decrease of EUR 4.6m or 7.3% compared with 9M 2019.
- On September 30, 2020, the order book amounted to EUR 43.8m, an increase of EUR 8.8m compared with the order book at the same date last year.
- Reported revenue was EUR 309.8m, a decrease of 5.2% compared with 9M 2019, due to a very strong 9M 2019 and revenue recognition of four new license deals being deferred.
- EBIT was EUR 65.9m compared with EUR 93.9m in 9M 2019.
- EBIT margin was 21.3% compared with 28.7% in 9M 2019.
- Net profit was EUR 45.7m compared with EUR 72.6m in 9M 2019.
- Free cash flow was EUR 70.5m, an increase of 6.8% compared with 9M 2019.
- SimCorp entered Q4 2020 with EUR 399m of the full year’s revenue signed, which is at the same level as at the same time last year.
Subsequent events:
- Since the closing of Q3 2020, two SimCorp Dimension contracts and one new SimCorp Coric contract have been signed.
- On October 12, SimCorp and State Street Bank International GmbH announced a non-binding Term Sheet to form a business partnership to provide a premier, fully integrated, front-to-back investment outsourcing solution, for insurance firms in EMEA.
Financial guidance 2020:
- SimCorp maintains its expectations for revenue growth and EBIT margin measured in local currencies for 2020 as announced in its Q2 interim report and company announcement dated October 12, 2020.
- Revenue growth measured in local currencies is expected to be between -5% and 5%, and the expectation for EBIT margin measured in local currencies is between 22.0% and 27.0%.
- Approximately 1.5%-points (previously 2%-point) of the expected revenue growth is related to the acquisition of AIM Software, and the acquisition is expected to impact the EBIT margin negatively by approximately 1%-point, implying an expected organic revenue growth of between -6.5% and 3.5% (previously between -7% and 3%) and an EBIT margin of between 23.0% to 28.0%.
Klaus Holse, SimCorp CEO comments: ”With a total of ten new clients in the first nine months of the year, our win rate has been satisfactory despite the challenges caused by the Covid-19 pandemic. A strong focus on building strategic partnerships, most recently with State Street, a highly loyal client base, and not least a deeply committed team make me confident that we are well positioned for closing the year on a strong note.”
Investor presentation
SimCorp’s Executive Management Board will present the report at a conference call on Thursday November 12, 2020 at 11:00 am (CET). Please use any of the following phone numbers to dial in to the conference call:
| From Denmark: | |
| From USA: | |
| From other countries: | +44 (0) 2071 928338 |
| Pin code to access the call: | 6677753 |
At the end of the presentation there will be a Q&A session.
It will also be possible to follow the presentation via this link:
The presentation will be available prior to the conference call via SimCorp’s website .
Enquiries regarding this announcement should be addressed to:
Investor contacts:
Klaus Holse, Chief Executive Officer, SimCorp A/S ( , )
Michael Rosenvold, Chief Financial Officer, SimCorp A/S ( , )
Anders Hjort, Head of Investor Relations, SimCorp A/S ( , )
Media contact:
Mette Trier, Communications Principal, SimCorp A/S ( )
Mittal Shah, PR Manager – SimCorp UK, North America, Asia Pacific (+44 (0)207 397 8072)
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