Basware: Out of the Sauna, Into the P2P Fire (Part 1)

The first part of this research brief appeared on Spend Matters UK/Europe. We feature PRO analysis following this introduction.

We’re in the heart of company results season now and one of the big players in our market announced their 2012 figures recently. Basware, the P2P and e-invoicing firm came in with results that – in classic hedging our bets fashion – we could take as glass half-full or half-empty.

At a headline level, sales of 113.7M Euros, up 5.5M on last year, were pretty static if we take into account the additional revenues that must have flowed from the acquisition of the German firm First Businesspost GmbH in early 2012. And operating income of 8.3M Euros, down a third (from 12.3 in 2011), was the smallest profit number since 2007.

That’s the negative interpretation. On the other hand, like a number of firms in this market, Basware have been going through transition from a traditional license-based sales model to SaaS (software as a service) that changes the way revenue for sales can be recognized. Less can be booked to the accounts at point of sale – but assuming you do a good job with your client, you should get a steadier flow of recurring revenue for years to come. Basware has also been expanding in their outsourcing offering in the invoicing area, which again is a good source of recurring revenues.

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