Pagero publishes interim report for Q2 2022: Strong second quarter with increased growth

Pagero Group AB (publ) publishes interim report for the period January-June 2022

“Increasing legislation demanding digital reporting and document transfer in various countries, combined with the growing trend to intensify automation of administrative tasks, have had a continued positive impact on the overall market trend. Pagero’s ARR increased by 49% and total net sales increased by 46%. Several of our investment markets show good growth and our offer “One connection – global reach” continues to gain market shares”, says Bengt Nilsson, CEO at Pagero.

Second quarter of 2022

• Net sales amounted to SEK 142.7 million (97.6), which is an increase of 46% (43% adjusted for currency). Organic growth amounted to 17% (16%).
• Recurring revenue amounted to SEK 127.0 million (87.5), which is an increase of 45% (42% adjusted for currency). The increase is a result of a strong growth of transactions in the Pagero Network and the acquisition of Gosocket. Organic growth of recurring revenue amounted to 16% (18%).
• Operating loss after depreciation/amortization (EBITA) amounted to SEK 48.3 million (12.3). EBITA is affected by external non-recurring costs of SEK 16.9 million in connection with the acquisition attempt of Tungsten; adjusted EBITA amounts to a loss of SEK 31.4 million. Performance is otherwise in line with the set strategy and is driven by the international expansion.
• The company is financially strong with a positive cash flow from operating activities of SEK 12.0 million (-7.0). 
• Earnings per share before dilution amounted to a loss of SEK 0.69.
• Pagero withdraws from the bidding process of Tungsten Corporation PLC.
• Denmark announces national legal requirements for e-invoicing.
• Pagero launches support for account-to-account payments in accordance with the P27 standard to help Nordic companies meet upcoming requirements.
• Pagero enters a new financing agreement of SEK 1,500 million in connection with the bidding process for Tungsten Corporation PLC.

First half of 2022

• Net sales amounted to SEK 279.4 million (187.1), which is an increase of 49% (46% adjusted for currency). Organic growth amounted to 20% (10%).
• Recurring revenue amounted to SEK 247.5 million (169.2), which is an increase of 46% (43% adjusted for currency). The increase is a result of a strong growth of transactions in the Pagero Network including the acquisition of Gosocket. Organic growth of recurring revenue amounted to 18% (14%).
• Annual Recurring Revenue (ARR) amounted to SEK 527.6 million (354.8), which is an increase of 49% (15%). Organic growth in the ARR amounted to 19%. ARR from the acquisition of Gosocket amounted to SEK 104.2 million.
• Operating loss after depreciation/amortization (EBITA) amounted to SEK 61.1 million (20.1). EBITA is affected by external non-recurring costs of SEK 16.9 million in connection with the acquisition attempt of Tungsten, adjusted EBITA amounts to a loss of SEK 44.2 million. Performance is otherwise in line with the set strategy and is driven by the international expansion.
• The company is financially strong with a positive cash flow from operating activities of SEK 19.5 million (15.8). The company’s liquid position is SEK 970.2 million.
• Earnings per share before dilution amounted to a loss of SEK 0.97. 
• Pagero successfully continues to sign agreements with several Fortune 500 companies and global leaders in the automotive industry, IT and healthcare.
• Pagero acquires Creative Technologies, to which it previously outsourced its R&D operations in Sri Lanka.

Significant events after the end of the period

• At the beginning of July, a repayment was made on a loan raised of SEK 750 million as part of the financing agreement in an amount of SEK 450 million. The financing facility of SEK 1,500 million remains and is currently being utilized in an amount of SEK 300 million.
• Pagero is approved as a Peppol service provider in Japan.

Webcast in conjunction with publication

Bengt Nilsson, CEO, will be delivering a presentation and Q&A in relation to the interim report on 23 August at 10.00 CET. To participate in the live event, follow this link. A recorded version will also be available on Pagero’s website after the event.

Interim reports

The interim report is available on Pagero’s website. 

For more information

Bengt Nilsson, CEO
[email protected]

Jan-Olof Ohlsson, CFO
[email protected]

Certified adviser
Erik Penser Bank is Certified Adviser and can be contact on +46 (0) 8-463 83 00 or [email protected].

This information is information that Pagero Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact persons set out above, at 2022-08-23 07:30 CET.

About Pagero

Pagero provides a Smart Business Network that connects buyers and sellers for automated, compliant, and secure exchange of orders, invoices, payment instructions and other business documents. With an open network and a wide range of value-added apps, Pagero helps businesses streamline their order-to-cash and purchase-to-pay processes while unlocking the full potential of accurate and reliable business data. All of this, regardless of location, industry, size or systems. 

Pagero’s share is traded on Nasdaq First North Growth Market under ticker PAGERO and ISIN SE0016830517.

Find out more on www.pagero.com