RIB Software SE: Further information on the Guidance for the financial year 2020
Stuttgart, Germany, 18 December 2019.
Dear Investors and Analysts,
Following today’s announcement on completing our deal signing targets for FY2019 and subsequently announcing our outlook for FY2020, we would like to add some more information.
In transformation from license to subscription, and topline growth over 30%, we have a mixed pipeline of targets and deals, that can flow through different fiscal quarters. Therefore, we give a conservative guidance, that we can adjust as we have more visibility on deals and signing flowing through. In 2019 we signed for example one Software license deal with EBIT/DA recognition over 5 Million Euro in H2. If such a deal is recognized as subscription the EBIT/DA impact is under 500.000 Euro in the year of deal signing. Because subscription deals are delivering a higher EBIT/DA margin over the usage period as license and maintenance deals, we are targeting more subscription deals and increase the ARR revenue in 2020.
In 2018, we started with a guidance range of €117 to 127 million and achieved revenues of €136.9 million. The EBITDA guidance of €33 to 43 million was achieved with € 38.8 million.
In FY2019 our revenue guidance ranged from €180 - €200M and we are currently expecting a range of €210-€225M after today’s announcement of deal number 30. On EBITDA €36-€46M and adjusted the forecast two times to currently €46-€52M, again as a result of outperforming our initial guidance as we develop the business throughout the fiscal quarters.
For 2020 our analysts have estimated a revenue around 250 Million Euro and our guidance is 260-300 Million Euro. Because of the transformation from licence to subscription and because of the high revenue growth rate we estimate that we reach an EBIT/DA margin over 20% which we intend to grow to over 30% in the midterm.
We will follow our conservative view on starting a fiscal year in 2020 and we will work hard to achieve our targets at the upper end or above, as in 2018 and 2019.
About RIB Group
RIB Software SE is an innovator in building and construction industry. The company creates, develops and offers cutting-edge digital technologies for construction enterprises and projects across various industries worldwide. iTWO 4.0, RIB’s flagship cloud-based platform, provides the world’s first enterprise cloud technology based on 5D BIM with AI integration for construction companies, industrial companies, developers and project owners, etc. With over 50 years of experiences in construction industry, RIB Software SE focuses on IT and engineering and becomes the pioneer in construction innovation, exploring and bringing in new thinking, new working methods and new technologies to enhance construction productivity. RIB is headquartered in Stuttgart, Germany and Hong Kong, China, and listed on the prime standard Frankfurt Stock Exchange since 2011. With over 1,500 talents in more than 30 locations worldwide, RIB is targeting to transform the construction industry into the most advanced and digitalized industry in the 21st century.