Continued positive momentum with good order intake and profitable growth: Interim report, January – September 2023

The third quarter

• Net sales MSEK 133.5 (111.9), rendering a sales growth of 19% (21%)
• Recurring revenue MSEK 88.4 (75.2)
• The 12-month recalculated recurring revenue, Annual Recurring Revenue, at the end of the second quarter 2023 was MSEK 356 (306), rendering an ARR growth of 16% (17)
• EBITA MSEK 34.2 (28.9), rendering an EBITA margin of 26% (26%)
• Operating income, EBIT, MSEK 25.8 (20.3)
• Cash flow from current operations MSEK 5.8 (17.7). The variation is mainly due to trade receivables, as 30 September was a Saturday in 2023 and most of the payments were received in early October 
• Net income MSEK 18.1 (14.7). 
• Basic earnings per share amounted to SEK 1.36 (1.11), up 23 percent and diluted to SEK 1.36 (1.10), up 23 percent

The first nine months

• Net sales MSEK 422.5 (354.6), rendering a sales growth of 19% (22%)
• Recurring revenue MSEK 255.2 (220.5)
• EBITA MSEK 108.1 (91.0), rendering an EBITA margin of 26% (26%)
• Operating income, EBIT, MSEK 83.6 (65.3)
• Cash flow from current operations MSEK 80.1 (70.0)
• Net income MSEK 59.4 (48.7)
• Basic earnings per share amounted to SEK 4.47 (3.67), up 22 percent and diluted to SEK 4.45 (3.65), up 22 percent

CEO's comments: Continued positive momentum with good order intake and profitable growth

During the third quarter, we continued to deliver strong growth and profitability. Growth amounted to 19% and the EBITA margin was 26%. Order intake is good and both our revenue streams – recurring software revenue and consulting – are delivering high growth.

The current business climate creates opportunities
Given the weaker economy, companies are increasingly focusing on retaining and developing existing customers. By providing a market offering that helps companies become better at sales, streamline their operations and build competitive relationships with their customers, we have an attractive product portfolio that delivers business-critical value. The current climate also provides a favourable platform for future growth in other ways. Our employee churn is at historically low levels, making us more efficient, while we continue to recruit at a high pace from an increasing number of attractive candidates on the market.

Long-term customer relationships build success
One of the cornerstones that has built our success over time is our 6,500 customers spread across different industries and different locations. I am therefore particularly pleased that during the quarter we will continue to be trusted to develop companies like Rejlers, NTEX and Pollex – loyal Lime users for over a decade – to create even more value throughout the customer journey. As a supplier, we are strongest when we combine our unique expertise and spot-on software to solve business-critical problems and become a natural part of each company’s core processes. We know we have succeeded when our customers feel that we have fully understood their business and packaged the solution to match their needs.

More business in Europe and strengthened positions in our focus industries
The business climate, with longer sales processes and more decision-makers involved in each deal, is similar to what we saw earlier in the year, and we see no signs of any major changes during the autumn. Despite this, order intake remains good and the number of deals won in countries outside Sweden is increasing. Among other areas, we continue to grow within the membership segment, as we welcome the Danish Association of Social Workers. The Norwegian energy company Notnodden and KLG Europe in the Netherlands have become Lime customers, and several deals were also won in Finland. If we can maintain this pace, we have great potential for growth in the European markets.

In our domestic Swedish market, we welcome several companies in our focus industries as new customers, and the size of the deals continues to increase. Following public tenders, we won Bostadsbolaget in the real estate segment, and we have built up good business opportunities among utility companies for the coming months. We also welcome Optilon, a new Lime customer in the consulting industry.

Leaders who show the way
Last year we launched our new leadership programme ‘Effective manager’. With a fast-growing organisation, ambitious goals and a strong culture, we want to constantly improve the skills of existing employees and help newcomers get off to an even better start. The majority of our leaders have now completed the training programme and we can already see the positive effects of our investment. In a business climate where many companies are cutting back on this type of investment, the opposite is our priority: good leaders and brave leadership are even more important in tough times. We need to be able to raise the bar and practice what we preach to deliver profitable growth – both on a daily basis and in the long term.

We are now focusing on ending the year in the best way possible, while creating the conditions for a good start to 2024.

/Nils Olsson, CEO & Managing Director, Lime Technologies 

Read the entire report in the attached PDF

Invitation to the presentation of Lime Technologies’ Q3 report

Today, October 19, at 09:30 CEST, analysts, investors, media, and other interested parties are invited to attend a webcast where Lime’s CEO, Nils Olsson, and CFO, Maria Wester, will comment on the published report and answer questions. The presentation will be held in English.

The presentation material is available on Lime’s website.

The link to the webcast can be found here.