Release Date: August 02, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BIMobject AB (STU:BOJB, Financial) reported a continuous growth in Annual Recurring Revenue (ARR) of 5% for the quarter, which is 8% when adjusted for foreign exchange rates.
- The company maintains a strong cash position with SEK223 million in liquid assets.
- BIMobject AB has launched a new solution for distributors to help manage product information, which is a strategic step forward in supporting industry transition.
- The company has over 4 million registered users across more than 100 countries, indicating a strong global presence.
- BIMobject AB's platforms are used by most top architectural firms worldwide, showcasing their industry relevance and reach.
Negative Points
- The company reported a loss of minus 5.1% in EBITDA, with a slight increase in loss compared to the previous year.
- There was a slowdown in the growth of monthly downloading users, reflecting lower market activity.
- The core platform business is experiencing higher churn, affecting growth rates.
- Net sales decreased by 9% versus the previous year when adjusted for currency effects.
- The company is facing challenges with increased external costs, mainly due to the use of consultants for development projects.
Q & A Highlights
Q: Do you plan in the near future to use AI? And do you see any possibility to work with AI for BIMobject?
A: Yes, AI is an interesting technology. While it may not completely transform the industry in the near future, we see good application areas for it. We use AI to help our developers work faster and more efficiently, and we also integrate AI into our products to streamline processes for users.
Q: What kind of role could BIMobject have in rebuilding Ukraine?
A: Ukraine is not a market where we have local representatives, but we have connections through content development providers. Our role in rebuilding Ukraine will depend on the extent to which BIM is used and the demand for products on our platform. We are committed to supporting the rebuilding efforts as much as possible.
Q: How much of the increase in ARR was related to Prodikt and how much to the old platforms?
A: We typically don't split numbers this way, but our core business related to the traditional BIMobject platform is the largest part of our business. However, growth from platforms like Prodikt and new solutions for distributors contributed significantly to our growth this quarter.
Q: How is the testing of the product targeted towards architects proceeding, and is there still a plan to launch it in the second half of the year?
A: We are continuously working on this application, adding improvements and features. We aim to expand it in the second half of the year and will continue developing it to ensure it integrates well with our other platforms.
Q: How much of the external costs in the report is related to consultants?
A: Out of SEK15.8 million in external costs, approximately SEK2.8 million is related to consultants comparable to full-time employees, mainly supporting integration projects and new solution development.
Q: How has churn and acquisition of new customers developed so far in Q3?
A: The level of client acquisition and churn is correlated with overall market activity. We saw a slight improvement in Q2, but activity remains lower than a year ago. It's too early to predict Q3 outcomes, especially given the summer period's impact on market activity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
