Pagero publishes 2023 Year End Report: An eventful end to a year with continued strong growth

“During the year, Pagero’s commercial expansion continued and the organization delivered an organic growth of 33% (23%) in net sales. Our strategy to grow the organization globally in parallel with our continued investment in product development has proven to be right. Have we reached the top of the global adaptation curve in the digitalization of business communications? No, the world has just begun to realize the automation potential of connecting business systems with each other, and authorities have just begun to realize the importance of digitally obtaining continuous reporting of business transactions, the primary basis of taxation. We are still just at the beginning of our journey”, says Bengt Nilsson, CEO at Pagero.
 

Fourth quarter of 2023

• Net sales amounted to SEK 223.0 million (169.6), which is an organic increase of 31% (26%) and 28% adjusted for currency.
   
• Recurring revenue amounted to SEK 179.7 million (143.2), which is an organic increase of 25% (24%). The increase is a result of a strong growth of both transactions and licences in the Pagero Network.
   
• Operating loss after depreciation/amortization (EBITA) amounted to SEK 17.4 million (25.5). Adjusted EBITA amounted to a loss of SEK 16.3 million (25.5). The result is in line with the international expansion strategy.
   
• Cash flow from operating activities amounted to an outflow of SEK 5.9 million (7.7) for the quarter.
   
• Earnings per share after dilution amounted to a loss of SEK 0.52 (0.22).
   
• Pagero launched the next generation business network.

• Pagero and Vertex established a partnership to deliver a global e-invoice solution.
   
• Pagero opened an office in Japan.
   
• Bengt Nilsson was appointed the Chairman of GENA.
   
• Pagero received a public take-over bid from Vertex.
   

January-December of 2023

• Net sales amounted to SEK 795.4 million (600.1), which is an increase of 33% (36%) and 31% adjusted for currency. Organic growth amounted to 33% (24%).
   
• Recurring revenue amounted to SEK 677.2 million (520.7), which is an increase of 30% (33%). The increase is a result of a strong growth of both transactions and licences in the Pagero Network. Organic growth of recurring revenue amounted to 30% (20%).
   
• Annual Recurring Revenue (ARR) amounted to SEK 764.5 million (604.2), which is an organic growth of 27% (27%).
   
• Operating loss after depreciation/amortization (EBITA) amounted to SEK 75.1 million (103.0). Adjusted EBITA amounted to a loss of SEK 74.1 million (86.1). The result is in line with the international expansion strategy.

• Cash flow from operating activities amounted to an outflow of SEK 50.6 million (30.1). The company’s cash and cash equivalents amounted to SEK 217.6 million.
   
• Earnings per share after dilution amounted to a loss of SEK 1.98 (1.79).

• Pagero’s warrants programme 2020/2023 raised SEK 54 million for the company fully utilised.
   
• Pagero received an order for EUR 4.2 million.
   
• Pagero and Thomson Reuters are starting a partnership to offer customers a service for indirect tax compliance.
   

Events after the period

• Pagero received a public take-over bid from Avalara Inc.
   
• Pagero received a public take-over bid from Thomson Reuters.
   
• Vertex and Avalara Inc. withdraws from the bidding process.
   
• Thomson Reuters successfully completes the acquisition offer and reaches 99.46% shareholding in Pagero. Thomson Reuters intend to call for the compulsory redemption of the remaining shares and promote a delisting of Pagero from Nasdaq First North Growth Market.
   

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

Carnegie Investment Bank AB (publ) is Certified Adviser

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 2024-02-23 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