DJ ENERGISME: First-Half 2020. Outlook.
ENERGISME
ENERGISME: First-Half 2020. Outlook.
12-Oct-2020 / 18:19 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
First-Half 2020
· Revenue up 51% (vs. first half of 2019)
· MRR(1) up 60% (vs. first half of 2019)
· Sharp improvement in EBITDA, results in line with expectations
Outlook
· Despite the impact of the health crisis, the second half of the year
will benefit from the ramp-up of sales partnerships and a positive
seasonal effect
· MRR(1) target for end-December 2020 confirmed
Energisme (FR0013399359/Ticker: ALNRG), a SaaS publisher dedicated to energy
performance, presents its first-half 2020 results. The financial statements
for the period ended 30 June 2020 were approved by the Board of Directors on
9 October 2020.
Consolidated data, French accounting H1 2020 H1 2019
standards (in &euro thousands)(2)
Revenue 957.5 635.3
Operating income 1,885.10 1,421.30
Operating expenses, o/w: -4,841.10 -4,521.40
Purchase of goods -13.1 -6.9
Other purchases and external expenses -1,553.00 -1,977.30
Taxation -51.8 -33.8
Personnel expenses -2,524.10 -2,296.10
Depreciation, amortisation, and provisions -699.1 -199.9
EBITDA -2,243.50 -2,900.20
Operating income -2,942.60 -3,100.10
Current income -2,933.80 -3,123.10
Financial income 8.7 -23
Net income/loss -2,826.10 -2,954.50
1) Monthly Recurring Revenue'
2) The presented accounts have been reviewed by the Statutory Auditors
Strong activity growth demonstrating the resilience of the business model
Energisme generated first-half 2020 revenue of &euro957.5 thousand, an
increase of 51% in relation to the same period in 2019. The health crisis
weighed on the group's sales transformation and the execution of certain
digitisation projects within specific target organisations, but it did not
damage the company's strength; its solution designed to directly meet new
energy performance objectives has already been adopted by more than 120
clients (energy service providers, energy suppliers and distributors,
industrial groups, real estate wealth managers, regional and local
authorities).
The MRR(1) also rose strongly over the period (+60%) from &euro162 thousand
to &euro260 thousand. Note that the bulk of new clients onboarded over the
period was ensured by the internal sales teams. From September, activity
should start to benefit from the ramp-up of the sales partnerships
implemented in recent months (ESN, IoT operators, engineering firms,
integrators and VAR). Since the start of the year, more than 300 sales staff
have been trained thanks to these partnerships and will boost the Group's
growth potential over the coming months, while limiting client acquisition
costs.
Strictly-managed operating expenses, a sharp improvement in EBITDA
Over and above this sharp growth in business, the results also came out in
line with expectations. Operating expenses rose by 7% in relation to the
first half of 2019 (to &euro4,841.1 thousand), increasing at a much slower
pace than growth in revenue.
As such, after a phase of massive investment (&euro18.5 million invested in
R&D since 2016) in development of the infrastructure and the technological
functionalities of its platform, Energisme can now concentrate its
expenditure on the commercial roll-out of its solution.
Against this backdrop, external expenses (notably including the use of
external service providers) fell by more than 20% to &euro4,841.1 thousand.
Personnel expenses were also strictly managed, growing by only 10% to
&euro2,524 thousand, reflecting the deliberate increase in the sales
headcount from 17 in the first half of 2019 to 26 in the first half of 2020.
That said, depreciation, amortisation and expenses increased significantly
(&euro699.1 thousand versus &euro199.9 thousand in the first half of 2019)
due to the recent operational commencement of latest technological
developments on the platform.
Overall, the group made negative EBITDA of &euro2,243.50 thousand, showing a
sharp improvement in relation to the first half of 2019 (negative EBITDA of
&euro2,900.20 thousand).
Operating income also showed an improvement, with the group making a loss of
&euro2,942.6 thousand versus a loss of &euro3,100.1 thousand in the first
half of 2019, incorporating depreciation, amortisation and provisions.
The group made a net loss of &euro2,826.10 thousand versus a loss of
&euro2,900.20 thousand in the first half of 2019.
The financial position excludes the funds raised during the successful IPO
Energisme reported disposable cash of &euro79.5 thousand at the end of the
first half of 2020. This position excludes the funds of &euro7.29 million
raised during the IPO in July 2020. Thanks to the success of this operation,
the company now has significant resources to ensure the execution of its
aggressive strategy to win new market share.
Outlook: confidence confirmed
Energisme is looking to the next few months with confidence.
The Group's activity will continue to benefit from structurally positive
trends on its market. The collection, processing and value extraction of
energy data have become priority objectives, as demonstrated by the tertiary
sector decree issued by the French government and notably the major plans
around the energy renovation of buildings. Thanks to its unrivalled
hyper-scalable platform, Energisme proposes a strong response to these major
challenges, offering measurable financial, operational and environmental
gains.
BACS: a new regulatory accelerator
The increasingly strict regulatory framework will also underpin future
growth. In July 2020, the government published the BACS (Building Automation
and Control Systems) decree under which new and existing tertiary
(non-residential) buildings are required to be equipped with energy
automation and control systems by January 2025. This new initiative comes as
part of the environmental priorities defined in the government stimulus
plan, and will help boosting demand and facilitate future sales activities.
Strengthened governance
The appointment of Jean-Michel Cagin to the Board of Directors of Energisme
is also a factor in this dynamic. With nearly 25 years of experience in
strategy consultancy, ten of which as a partner at Roland Berger and OC&C,
focused on TMT practices and private equity, Jean-Michel Cagin is an expert
in the various fields of technology (Software, Cloud and Digital). This
expertise will be key in implementing the current strategy focused on the
rapid commercial roll-out of the platform
A ramp-up of sales partnerships
The focus on speeding up sales momentum will take on full meaning in the
second half of the year with the ramp-up of the commercial distribution
partnerships signed over the past few months. This will notably be the case
with Econocom, a European digital transformation specialist, which at the
end of September 2020 announced the roll-out of Energisme's platform among
all of its clients through its Green & Energy division, which specialises in
the financing of energy transformation projects.
Strong revenue growth expected over the full year
This ramp-up of partnerships combined with a further boosting of internal
sales efforts should support growth over the coming months. The second half
of the year will also benefit from a traditionally positive seasonal effect
during the fourth quarter. This sharp growth will not however be enough to
reach the revenue target of &euro4 million presented during the IPO, as the
persistent health crisis has continued to slow down the sales transformation
of certain projects even though they are at an advanced stage of discussion.
This revenue target is deferred to 2021.
Confirmation of the MRR(1) target, solid visibility on future growth
The MRR(1) target of around &euro400 thousand for December 2020 should
however be reached, compared with MRR(1) of &euro191.1 thousand at the end
of December 2019.
With each passing month, Energisme continues to build a recurrent revenue
base thanks to the strength of its Saas model. Over the coming months, the
additional revenue expected on the installed base will come on top of
revenue from large new clients for which discussions are currently at an
advanced stage.
Despite mixed market conditions, Energisme benefits from solid visibility on
its future growth, enabling it to pursue the execution of its strategy with
confidence.
About ENERGISME
***************
Founded in 2004 and taken over in 2015 by energy sector specialists,
ENERGISME has developed a SaaS technology platform to accelerate companies'
and buildings' energy performance (energy service providers, energy
suppliers and distributors, manufacturers and property managers) by using
intelligent data to achieve financial, operational and environmental gains
that are substantial and, above all, measurable. Bolstered by its platform's
technological and operational attributes, ENERGISME already has 114 large
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