Hubwoo Announces 2012 Annual Results
- SaaS** Revenue stable while one time services decline
PARIS, March 28, 2013 /PRNewswire/ — Hubwoo SA (Euronext: HBW.NX), a leading collaborative business network provider, today announced financial information for 2012, in accordance with the “European Transparency Obligations Directive” financial disclosure requirements.
Greg Mark, Hubwoo Chairman & CEO commented: “As we look back on 2012, we acknowledge that market activity beyond our control has resulted in the need for us to transform away from strategies of the past. As we continue to innovate around the vision of creating the first truly all business network, we look to challenge past business models of valueless fee structures and focus on business process innovation in the cloud. Transformation, unfortunately, involves disruption and clearing this new corporate strategy has negatively impacted our financial performance in 2012. Notwithstanding these results, we are pleased with the progress we are making in creating The Business Network by Hubwoo.”
1. 2012 Key Results:
The Hubwoo Board of Directors approved the 2012 audited accounts on March 27, 2013, which will be formally certified in April.
EUR Million 2011 2012 change in % ----------- ---- ---- ---------- Revenue 36,5 33.4 -8% ------- ---- ---- --- EBITDA (*) 4,5 2.2 -51% --------- --- --- --- Net Earnings -1,2 -2.7 -123% ------------ ---- ---- ---- Operating Cashflow 1,0 -0.5 -153% ------------------ --- ---- ---- Cash 5,5 6.8 24% ---- --- --- ---
Over the year, revenue declined by 8% compared to 2011, due to market conditions in which significant merger and acquisition activities delayed prospects’ business decisions for new projects.
The recurring SaaS** components of revenue remained stable for the year in comparison to 2011, while one time services from implementation projects declined (-31%) against 2011. Overall, total revenues decreased slightly (-8%) as compared to 2011.
(*)EBITDA: Operating result before depreciation and non-recurring items.
(**) SaaS is a model of delivering technology where a software solution is hosted ,on-demand, as a service for its customers. Clients do not buy the technology but rather pay a subscription fee to use it.
The decrease in 2012 revenues caused a significant decrease in all profitability indicators, with EBITDA at EUR 2.2M, down EUR 2.3M compared to 2011, and net income negative, at EUR (-2.7)M.
The Company implemented significant corrective actions on its cost base in the second part of 2012, from which the effects will be visible in 2013. These corrective actions, almost completed, have targeted predominantly the services organization, while IT operations streamlining will deliver further significant savings in 2013 as a consequence of the complete migration of the Achat Pro platform onto the core Hubwoo platform.
In accordance with IFRS, a goodwill impairment test has been conducted by analyzing the market and its growth potential and by evaluating the company’s fair market value. Since the fair value is higher than the book value, no goodwill depreciation has been accounted for.
In 2012, the company’s operating cash-flow was EUR (-0.5)M after restructuring and exceptional cash outlays of EUR 1M.
Capital investment was strong, at EUR 2.5M, and focused on the Company’s strategic solution suite, The Business Network.
As a reminder, Hubwoo had raised EUR 4.9M (net) in Q1 2012. That capital raise was intended to accelerate the Company’s investment in The Business Network.
The 2012 year-end cash position was EUR 6.8M, EUR 1.3M above the end of 2011.
2. 2012 major events:
New Buyer Customers
In 2012 Hubwoo signed prestigious new customer contracts including Arkema, Boehringer, BVG, CHU, H.B. Fuller, Philips, Pacific Rubiales, Sura, Takeda, and a ten year subscription contract with Uni.H.A.
The Business Network Growth
Business community volumes surpassed 1 million registered businesses at the end of 2012. Critical mass in businesses provides the foundation for community value and for future incremental network revenue streams.
Capital Increase in Q1 2012
In Q1 2012 Hubwoo launched a capital increase, that took place between the 27th of February and the 16th of March 2012 and resulted in a total demand of around EUR 6.3M which corresponds to a subscription rate of 138%. This over subscription allowed the operation to be extended to EUR 5.3M (gross).
New Product Releases
The Business Network, Hubwoo’s collaborative business hub, had three major releases over the year that included:
- Invoice & Payment Status – Network offering that eliminates invoice & payment status inquiries to Accounts Payable by bringing all of an enterprise’s status information to the cloud.
- Supplier Master Synchronization – New functionality in Hubwoo’s Master Data Exchange integration framework that reduces data administration and increases accuracy.
- Streamlined and automated supplier onboarding and catalog update processes
- Invoice legal compliance expanded to 38 countries
- Consistently categorized and searchable business profiles that serve as a baseline for sellers to market themselves and for buyers to search for qualified suppliers.
- Social commerce infrastructure including business ratings, search engine optimization, credit card processing, and direct links to follow a company on The Business Network.
- Marketing packages for sellers to differentiate themselves from other businesses.
Post closure significant events: Microsoft alliance agreement signed in Q1 2013
On March 19, 2013, Hubwoo announced that it has teamed up with Microsoft Corporation to help tens of thousands of Microsoft ERP customers with a step change in spend compliance and accounts payable automation. Through the global alliance, the two companies will integrate and jointly market The Business Network for Microsoft Dynamics®, enabling businesses using Microsoft Dynamics AX with direct access to The Business Network by Hubwoo.
About Hubwoo (www.hubwoo.com)
Hubwoo is the world’s leading collaborative business network provider, connecting companies to enable more productive B2B commerce. Through The Business Network, Hubwoo’s open and collaborative business hub, Hubwoo makes it easier for companies to search, connect and collaborate. The Business Network drives value for organizations by connecting them to over one million active businesses around the globe. With Hubwoo, buyers can source smarter, buy smarter and pay smarter. Sellers can market smarter, sell smarter and invoice smarter. Significant customers include BASF, Honeywell, Shell, Evonik, EDF, Nokia, Monsanto, Nationwide, Michelin, Henkel, Statoil, CONSOL Energy, EcoPetrol, Campbell’s, Burton’s Foods, and The Dow Chemical Company. Hubwoo’s global partnerships include Microsoft, IBM, and Dun&Bradstreet.
Hubwoo has major operations in Paris, Houston, Chicago, Bonn, London, Manila, and Leuven. Listed in Compartment C on the Euronext Paris Eurolist.
ISIN: FR0004052561, Euronext: HBW, Reuters: HBWO.PA, Bloomberg: HBW:FP
SOURCE Hubwoo SA