Higher spending weighs on profitability but opens up new business opportunities


Crealogix Holding AG / Key word(s): Half Year Results

March 15, 2022 / 07:00 CET/CEST
Publication of an ad hoc announcement pursuant to 53LR
The issuer is solely responsible for the content of this announcement.

Ad hoc announcement according to Art. 6 Para. 1 lit. 53LR

Zurich, March 15, 2022

Total sales fell by CHF 7.2 million to CHF 45.4 million in the first half of the current financial year. Recurring sales amounted to CHF 25.4 million, which corresponds to 56% of total sales. CREALOGIX was thus able to increase the proportion of recurring sales for the second time (previous year: 50%). SaaS/hosting revenue also increased 8% and accounted for 32% of total revenue. The higher sales from the SaaS business are mainly due to orders from development banks in Germany.

In order to push ahead with the development of the development portal for the German development banks and other strategic products, CREALOGIX has significantly increased spending on product development (R&D) and invested a total of 30% of sales. In the previous year it was 18% in the same period. The high development costs had a negative impact on the EBITDA, which amounted to CHF -3.8 million. Even additional cost-cutting measures could not fully compensate for the high costs. In addition, the ongoing travel restrictions due to the Covid-19 pandemic made it difficult to acquire new customers in all regions and dampened CREALOGIX’s growth targets.

In the first half of 2021/2022, CREALOGIX recorded a net loss of CHF -7.7 million before goodwill amortization. At CHF -15.4 million, free cash flow was significantly below the previous year: CHF -1.5 million. Cash and cash equivalents also decreased to CHF 22.7 million (June 30, 2021: CHF 27.7 million). Accounting continues to be conservative, with goodwill from previous acquisitions amortized on an ongoing basis and research and development (R&D) expenses charged directly to the income statement.

Successful commissioning of customer solutions
The high product investments in the first half of 2021/2022 made a significant contribution to the successful launch of new customer solutions, such as the funding portal for the development banks in Germany. CREALOGIX is also responsible for hosting and operation at five development banks. Other institutions are to be added in the coming months. CREALOGIX also successfully expanded its customer base in the Middle East and convinced existing customers in Switzerland of significant solution expansions.

With an optimized cost structure, the consolidation of the product portfolio and the development of nearshore centers, CREALOGIX reduced costs and staff. In the second half of the year, the company will continue to work on its cost base in order to continuously increase profitability. CEO Oliver Weber said: “We remain committed to executing our SaaS strategy. Through the product investments made and the focusing of our portfolio, we will achieve our financial goals, in particular a significantly improved EBITDA margin.’

Improved second half
CREALOGIX expects higher sales in the second half of 2021/2022 than in the first half. The second half of the year is generally more profitable and the additional investments in the product portfolio are coming to an end. CREALOGIX expects a significantly improved EBITDA margin for the 2022/2023 financial year, provided the geopolitical situation does not deteriorate further.

You can download the complete half-year report 2021/2022 here:

Ad hoc notification according to Art. 6 Para. 1 lit. 53 LR (PDF)

CREALOGIX recorded a decline in sales in the first half of the 2021/2022 financial year. The progressive conversion of the business model from licenses to the rental model SaaS (Software as a Service) and higher expenses in product development have impacted profitability. At the same time, the share of recurring sales rose to 56% of total sales. In the medium term, as a fintech specialist, new business areas will be opened up for us through SaaS transactions and expenditure.

The CREALOGIX Group is a Swiss top 100 fintech company and world market leader in digital banking. CREALOGIX develops and implements innovative fintech solutions for the financial institutions of tomorrow. With the solutions from CREALOGIX, banks, asset management companies and other financial institutions can respond better to changing customer needs in the area of ​​digital transformation. The group, founded in 1996, employs around 600 people worldwide. The shares of the CREALOGIX Group (CLXN) are traded on the SIX Swiss Exchange

This press release contains forward-looking statements that are not guarantees of future performance. These statements are based on information currently available to our management and management’s current assumptions and forecasts. There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual future results, financial condition and performance to differ materially from the forward-looking information and statements contained in this presentation. Any forward-looking statement speaks only as of the date of the statement, and CREALOGIX undertakes no obligation to update or revise any forward-looking statement or other information.

This press release is not intended as a solicitation or recommendation to sell, buy or hold any securities, and does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction, including the United States of America. Any such offering will be made only by means of a prospectus issued in accordance with applicable securities laws.

End of the ad hoc announcement


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