USU Software AG reports record sales and earnings in 2021 and forecasts further growth in 2022

• Consolidated sales increase by 4.3% to new record of EUR 111.9 million
• Above-average growth in SaaS revenue of 11.5% to EUR 10.8 million
• Adjusted EBIT grows by 10.2% to EUR 10.2 million
• Net profit up 23.2% to EUR 6.8 million
• Group liquidity increases by 31.4% to EUR 24.3 million
• Orders on hand climb by 6.5% to EUR 65.8 million

According to the provisional figures published today, USU Software AG (“USU”, ISIN DE000A0BVU28) enjoyed the best fiscal year in its history in 2021. USU and its subsidiaries (hereinafter referred to as “USU” or the “USU Group”) increased their consolidated sales by 4.3% year-on-year to EUR 111.9 million (2020: EUR 107.3 million). The company benefited from above-average growth in software-as-a-service (SaaS) revenue, which rose by 11.5% to EUR 10.8 million (2020: EUR 9.7 million). At the same time, maintenance income climbed 4.0% year-on-year to EUR 23.7 million (2020: EUR 22.8 million). Accordingly, USU increased its recurring revenue (maintenance income plus SaaS revenue) by 6.3% compared with the previous year to EUR 34.5 million (2020: EUR 32.5 million). With the digitalization trend continuing, USU’s consulting revenue also rose by 5.8% year-on-year to EUR 63.7 million in 2021 (2020: EUR 60.2 million). License revenue declined as expected in 2021 as USU transitions from non-recurring license business to SaaS. Despite numerous license orders from new and existing customers, license revenue fell by 7.5% year-on-year to EUR 12.0 million in 2021 (2020: EUR 12.9 million).

The operating cost base of the USU Group increased by just 2.2% year-on-year to EUR 103.2 million in fiscal 2021 (2020: EUR 100.9 million). As a result of the significant expansion in high-margin recurring revenue and the below-average increase in Group expenses, the reporting period saw the USU Group substantially improve its profitability compared with the previous year. Adjusted EBIT rose by 10.2% year-on-year to EUR 10.2 million (2020: EUR 9.2 million).

On an unadjusted basis, the company increased its EBITDA by 7.6% year-on-year to EUR 14.4 million (2020: EUR 13.4 million), while its EBIT rose by 37.7% year-on-year to EUR 9.7 million (2020: EUR 7.0 million).

Net finance costs amounted to EUR 0.1 million in the reporting year (2020: EUR -0.2 million), largely as a result of exchange rate effects, while income taxes increased to EUR -3.0 million in the same period as a result of the earnings growth and negative effects from deferred taxes (2020: EUR -1.3 million). All in all, consolidated net profit improved significantly by 23.2% to EUR 6.8 million in 2021 (2020: EUR 5.5 million). With an average of 10,523,770 shares outstanding, this corresponds to earnings per share of EUR 0.64 (2020: EUR 0.52).

As a result of the positive development in income, the USU Group’s equity climbed from EUR 61.8 million as of December 31, 2020 to EUR 64.4 million as of December 31, 2021. With total assets of EUR 116.0 million (December 31, 2020: EUR 115.5 million), the equity ratio was 55.5% as at December 31, 2021 (December 31, 2020: 53.5%). On the back of the increase in profits, the USU Group’s liquidity rose to EUR 24.3 million (December 31, 2020: EUR 18.5 million). With this equity ratio, extensive Group liquidity, and no liabilities to banks, the USU Group continues to have extremely sound and secure financing.

The USU Group’s total orders on hand increased by 6.5% year-on-year to EUR 65.9 million at the end of fiscal 2021 (December 31, 2020: EUR 61.9 million).

For 2022, the Management Board is forecasting sales growth to EUR 120-125 million, with recurring revenue accounting for 45% of new product business. Accordingly, adjusted EBIT is expected to increase to EUR 10.5-12 million. Following on from the forecast growth in 2021, the Management Board is also confirming the current medium-term planning, which includes average organic sales growth of 10% in the next few years and, in view of the continued growth in SaaS business, an increase in the operating margin on adjusted EBIT to between 13% and 15% by 2024.