Netherlands headquartered business software company, UNIT4 posted positive results for H113, with total revenue increasing 4.1% compared to 1H 2012, to €240.3 million.
For the first time, revenues from cloud based solutions (SaaS and subscriptions), at €32.5 million, exceeded revenues from licence sales, at €32.4 million. Cloud based solutions grew 43.2%, while license revenues declined 10%; this contrasts with FY12 when both license revenues and SaaS/subscription revenues increased. Recurring revenue from contracts, SaaS and subscriptions reached €130.0 million, representing 54% of total revenues (H1 2012: 51%). Revenues from maintenance contracts increased by 2.1% (to €97.5 million) and revenues from other services increased 1.7% (to €77.9m).
This was achieved before any recognition from recently signed large UK Government deals - with Arvato for the Department for Transport shared services centre (see Arvato confirmed as DfT shared services provider) and with BT in support of the London Tri-Borough shared services project (see BT winner at London Tri-borough deal). UK revenues increased by 8.5% to €39.1 million, with an EBITDA margin of 20% (up from 18%).
Importantly, despite declining license revenues and increased business from the subscription model, EBITDA continued to increase. It was up by almost 9.7% to €40.6 million. But, highlighting that much of the investment in cloud based solutions is in FinancialForce.com, EBITDA excluding FinancialForce.com rose by 13.2% to €46.3 million. FinancialForce.com is the cloud applications joint venture with Salesforce.com. Its monthly revenue run rate was up 80% compared to June 2012, at $21.5 million. Actual revenues from the venture increased by almost 80% to €7.2 million. To support that growth, global headcount was increased by 66% from 125 to 208. As such FinancialForce.com’s losses (LBITDA) increased from €3.9 million to €5.7 million compared to H112.