Pagero publishes year-end report – strong finish with accelerated growth

Pagero Group AB (publ) publishes year-end report for Q4 and the period January-December 2022.

“Pagero’s journey of strong growth continued during the fourth quarter and full year of 2022. An accelerating organic growth indicates that the business model shows scalability and that the self-reinforcing network effects are starting to show results”, says Bengt Nilsson, CEO at Pagero.
 

Fourth quarter of 2022

• Net sales amounted to SEK 169.6 million (134.7), an increase of 26% (42%) and 18% adjusted for currency. Organic growth amounted to 26% (17%).

• Recurring revenue amounted to SEK 143.2 million (115.5), an organic increase of 24% (19%). The increase is mainly a result of a strong growth of transactions in the Pagero Network. 

• Operating loss after depreciation/amortization (EBITA) amounted to SEK 25.5 million (17.5). The loss is in line with the set international expansion strategy.

• Cash flow from operating activities amounted to SEK -1.8 million (8.2). The company’s cash and cash equivalents amounted to SEK 383.9 million.

• Earnings per share before dilution amounted to a loss of SEK 0.37.

• Spain introduced nationwide legal requirements for e-invoicing.
 

January - December 2022

• Net sales amounted to SEK 600.1 million (441.8), an increase of 36% (27%) and 31% adjusted for currency. Organic growth amounted to 23% (13%).

• Recurring revenue amounted to SEK 520.7 million (392.4), an increase of 33% (30%) and 28% adjusted for currency. The increase is mainly a result of a strong growth of transactions in the Pagero Network. Organic growth of recurring revenue amounted to 20% (15%).

• Annual Recurring Revenue (ARR) amounted to SEK 604.2 million (475.2), an organic growth of 27% (17%).

• The company entered and subsequently decided to leave a bidding process regarding the acquisition of Tungsten Corporation PLC.

• Operating loss after depreciation/amortization (EBITA) amounted to SEK 103.0 million (39.6). EBITA is affected by non-recurring costs of SEK 16.9 million in connection with the attempt to acquire Tungsten; adjusted EBITA amounted to a loss of SEK 86.1 million. The loss is in line with the set international expansion strategy.

• Cash flow from operating activities amounted to SEK -7.8 million (21.0). The company’s liquid position is SEK 383.9 million. During the period, the company made a repayment of SEK 572,4 million. 

• Earnings per share before dilution amounted to a loss of SEK 1.79. 

• The company acquires the part of Creative Technologies (PVT), to which it previously outsourced its R&D business in Sri Lanka.

• Pagero launches support for P27 – the new payment infrastructure that replaces Bankgirot.

• Pagero obtains over 10,000 new customers, including several Fortune 500 companies and global leaders in the automotive, IT and healthcare sectors.
 

Significant events after the end of the period

• Pagero establishes offices in Minneapolis, United States.

• The subscription period for Pagero’s warrants programme (2020/2023) is ongoing and will end on 1 March 2023.

• Pagero and Thomson Reuters partner to bring joint offer to market.
 

Webcast in conjunction with publication

Bengt Nilsson, CEO, will be delivering a presentation and Q&A in relation to the report on 24 February at 10:30 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 2023-02-24 at 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