Unifiedpost Group reports strong Q3 2023 performance and strategic
progress
Press release - Regulated Information
Unifiedpost Group reports strong Q3 2023
performance and strategic progress
Strong core revenue growth, expanded customer
base and strategic progression
La Hulpe, Belgium – November
16, 2023, 7:00 a.m. CET - Unifiedpost Group (Euronext: UPG)
(Unifiedpost, the Group, or the Company) is pleased to report
strong Q3 2023 performance, driven by a double-digit increase in
recurring digital processing revenue. The customer base surpassed
1,2 million. Unifiedpost Group reaffirms its priority to a positive
cash flow generation following the planned trajectory with diligent
monitoring.
Highlights
- Unifiedpost Group achieved 14,6% year-over-year organic growth
in its core business in the first nine months
- Recurring digital revenue reached €92.8 million in the first
three quarters of 2023
- The customer base grew to 1.212.508 by Q3-end, a 14,0% increase
this year
- The company continues to invest in R&D to adapt its
platform to regulatory changes in European markets
- With a strong Q4 anticipated 'EBITDA minus Capex' is expected
to turn positive in Q4, and the potential for it to remain positive
over H2 2023 exists with the realization of one-time deals in
Q4
- The divestment of FitekIN/Onea is on track, and the Group is
considering other non-core divestments
Hans Leybaert, CEO and Founder of Unifiedpost
Group, commented on the Q3 results, saying: " We've delivered on
our promises and are delighted with our strong YTD and Q3 2023
performance. Our focus on recurring digital processing revenue has
paid off, with our customer base exceeding 1,2 million. As we move
forward, we remain focused on improving the cash flow."
Key figures
Revenue (EUR million) |
Q3 2023 |
YTD Q3 2023 |
YTD Q3 2022 |
Change (%) |
Core |
|
|
|
|
Recurring digital processing |
30,0 |
92,8 |
83,0 |
11,8% |
Non-core |
|
|
|
|
Non-recurring digital processing |
1,3 |
3,7 |
5,6 |
-33,9% |
Postage & parcel optimisation |
11,4 |
39,3 |
47,1 |
-16,6% |
Group |
42,7 |
135,8 |
135,7 |
0,0% |
Revenue growth YTD 2023 vs YTD
2022 |
Organic
(local currency) |
Currency |
Acquisitions /
divestments |
Total
Growth |
Core |
|
|
|
|
Recurring digital processing |
14,6% |
-2,8% |
0,0% |
11,8% |
Non-core |
|
|
|
|
Non-recurring digital processing |
-33,9% |
0,0% |
0,0% |
-33,9% |
Postage & Parcel optimisation |
-8,5% |
-8,1% |
0,0% |
-16,6% |
Business KPI’s |
End Q3 2023 |
End Q2 2023 |
End Q1 2023 |
End Q4 2022 |
Customers |
1.212.508 |
1.172.197 |
1.133.706 |
1.063.776 |
Paying customers |
505.636 |
490.936 |
473.679 |
468.128 |
Customers paid by 3rd parties |
706.872 |
681.261 |
660.027 |
595.648 |
Companies in
business network |
2.320.065 |
2.254.762 |
2.186.270 |
2.109.297 |
Banqup
customers |
156.450 |
151.931 |
143.902 |
124.333 |
Banqup customers
Belgium (Billtobox) |
50.528 |
48.651 |
45.359 |
40.363 |
Banqup customers
France (JeFacture) |
15.699 |
14.291 |
11.973 |
5.428 |
Steady core revenue growth
Unifiedpost Group delivered a continued strong
growth in its core business in the third quarter of 2023. The
Company grew organically in local currency by 14,6% year-over-year
in its core business over the first nine months, bringing the
digital processing revenue YTD 2023 to €92,8 million. The Company
maintains a consistent pattern of double-digit expansion. The
Company faced a challenge in the form of adverse currency exchange
rates in Sweden, Denmark, and Norway, leading to an absolute growth
in euro of 11,8% year-over-year in the first three quarters for the
recurring digital processing revenue.
We observed robust growth in countries where
Unifiedpost holds a dominant market position. In Belgium, Billtobox
experienced significant growth, and large senders performed well.
In the Netherlands, there is a continued strong performance in
digital identity solutions. The Baltic countries benefited from a
diverse service mix, contributing to growth. Additionally, in the
Balkans, growth was driven by increased adoption of the government
platform and related business. France is gearing up and showed
promising growth. The UK experienced a decline in revenue due to
the Group's strategic restructuring efforts focused on accelerating
the shift from paper-based to digital services.
Unifiedpost's payment services, a part of
recurring digital processing, have expanded to 24 countries.
Significant revenue is generated in six key countries: Belgium, the
Netherlands, Poland, Estonia, Latvia, and Lithuania. Other
countries are close to finalising important deals in the payment
space.
The non-recurring digital processing revenue
declined year-over-year in the first nine months, a strategic
decision by the Group as it redirects its resources and focus on
product development and services for the generation of recurring
digital processing revenue. The non-recurring digital processing
revenue includes for the first nine months of the year only project
revenue (customise requests from large corporates). In the first
nine months the Company had no license revenue in the non-recurring
digital processing. The Group continues to actively work to secure
new government contracts.
For the postage and parcel optimisation segment
the Group maintained a balanced approach to shifting from paper to
digital. The revenue also encountered in this segment challenges
from currency fluctuations primarily in Sweden.
Ninety-six percent (96%) of Unifiedpost Group's
total year-to-date revenue is recurring, highlighting the Company's
stable revenue generation, supported by the loyal customer base.
The Group's churn rate remained minimal, staying below 3%. In
countries at the forefront of digitization, the churn rate is as
low as 1% to 2%.
Strong customer growth
Unifiedpost continues to experience substantial
growth in the customer base. By the end of Q3 2023, the Company had
1.212.508 customers (a 14,0% increase compared to the end of 2022).
This demonstrates a consistent upward trajectory over several
years. Within the growing customer base, the Group has 505.636
paying customers. In addition to paying customers, the platform
serves customers paid by third parties. This segment has expanded
to include 706.872 customers by the end of Q3.
The business network, connecting Unifiedpost
customers and other companies through digital means, now links over
2,32 million companies. This reinforces Unifiedpost’s position as a
leader in the e-invoice and e-payment business.
The core SME platforms, including Banqup,
Billtobox and JeFacture, have experienced substantial momentum. By
the end of Q3, their combined customer base reached 156.450,
reflecting consistent growth throughout the year.
Unifiedpost remains dedicated to streamlining
business processes for its growing customer base and leveraging the
substantial growth opportunities presented by European VAT in the
digital age (VIDA).
Preparing for the future: Unifiedpost's
strategy in an evolving market
Unifiedpost is at a significant turning point as
the entire European market prepares for the new way of working in
the digital era. This shift in the regulatory landscape, driven by
VIDA regulation, creates opportunities and positions Unifiedpost at
the forefront of the digital transformation. Unifiedpost aims to
play a crucial role in this transformation.
While various countries are rapidly announcing
changes, the significant transformation is gradually becoming more
evident on the horizon. In the past quarter, there have been
noteworthy regulatory developments in key European markets, with
amongst these:
- France: E-invoicing implementation in France is set to commence
in September 2026, beginning with mandatory e-invoice reception for
all companies and large and mid-size companies that must issue
e-invoices
- Germany: The new implementation timeline is starting in January
2025 with optional e-invoicing and mandatory e-invoicing for large
companies as from 2026
- Belgium: Mandatory B2B e-invoicing will be enforced in Belgium
from 2026
A summary overview of important legislative
decisions in the last quarter in the regulatory framework in
different European countries and Unifiedpost markets can be found
in the appendix.
The European Union offers a market potential of
24,9 million businesses and an additional 27,7 million
self-employed individuals, forming a target market of 52,6 million
potential customers. Many self-employed individuals and SMEs still
lack solutions for e-invoicing, e-payments, e-reporting and tax
validation. Unifiedpost is today a market leader on a market that
will be growing exponentially in the coming years.
While the horizon promises increased growth, the
Group is acutely aware of the need to address crucial priorities in
the short term. The current focus lies in becoming cash flow
positive on the current business by growth and optimising business
operations.
Navigating the roadmap to success:
Unifiedpost's steady progress
Unifiedpost's strategy execution has made
significant progress, marked by tangible achievements. The Group’s
objective of establishing a comprehensive European business network
among companies is materialising. It remains important to continue
expanding both the Company’s own network and connected networks, as
well as extending the services to the existing customers through
upselling.
Unifiedpost has experienced substantial growth
in its network and the growth potential remains high with the
market that is being created by VIDA. In addition to expanding the
network, it is equally important to focus on upgrading the existing
customers to comprehensive solutions. Notably, the in-house payment
solution has been gaining traction in the market. The adoption of
Unifiedpost's integrated payments solution by its customers has
surged by 50% over the past 12 months, reflecting the growing
demand for the integrated service offering.
Unifiedpost's R&D team consisted at the end
of Q3 2023 of 399 full-time employees, making up 31% of the total
Group headcount. Within this team, 72% of resources are dedicated
to implementing new requirements and positioning Unifiedpost for
the future market. This substantial investment in research and
development emphasizes Unifiedpost’s commitment to innovation and
future growth. The Company is successfully managing its talent
pool, retaining key personnel who are instrumental to the continued
success.
The integration and cost-efficiency initiatives,
such as consolidating product management across countries and
streamlining the support organisation, have proceeded as planned,
resulting in a more streamlined organisation. Towards the end of
Q3, Unifiedpost reduced its workforce to 1.292 FTE, marking an
11,5% reduction compared to the beginning of the year. This
reduction was achieved through a combination of workforce
optimisation, role integration, and organisational streamlining,
resulting in a more agile and efficient structure. At management
level, steps were taken to limit the number of managers, enhancing
overall operational efficiency.
In addition to the efforts in expanding and
enhancing services for the customers, the Company is also actively
progressing with divestments of non-core businesses that do not
align with the Group’s future integrated digital solutions
strategy. The divestment of FitekIN/Onea is proceeding according to
plan. The aim is to complete it in Q4 of 2023. Furthermore, the
Company is continuously evaluating other non-core businesses to
determine their alignment with the Company’s strategic vision.
Sustained financial progress
The growing customer base, combined with
efficient cost management, improves gross profit and EBITDA. In
line with Unifiedpost's standard practices, the Group foresees a
robust fourth quarter characterized by the seasonal uptick in
revenue from existing business and customers. The Group expects
‘EBITDA minus Capex’ to turn positive in the fourth quarter. The
conclusion of a number of one-off deals in the fourth quarter could
result in ‘EBITDA minus Capex’ remaining positive in the second
half of 2023.
<End>
Appendix: summary overview of important legislative decisions
Q3 2023
OVERVIEW |
|
|
Germany |
Milestone(s) |
January 2025:
optional e-invoicing January 2026: mandatory for businesses with
turnover exceeding €800.000 January 2027: mandatory for all
businesses |
Details |
Mandatory B2B
e-invoicing has experienced some delays, particularly for small
businesses. These changes will be officially enacted through a tax
reform Bill, which also encompasses mandatory B2B e-invoicing for
domestic transactions. The requirement has now been extended for an
additional year for small businesses. The Bill is awaiting approval
in the Parliament (Bundestag), with expected approval anticipated
by December 15, 2023. |
Belgium |
Milestone(s) |
January 2026:
enforcement of mandatory B2B e-invoicing |
Details |
Belgium is set to
enforce mandatory B2B e-invoicing starting January 1, 2026,
following the preliminary draft law's approval by the Belgian
Council of Ministers. The implementation date for the e-invoicing
mandate is January 1, 2026, with a "big bang" approach, meaning it
will be fully enforced from the start. It's important to note that
the draft law is subject to approval by the Belgian parliament, and
the Council of Ministers' approval represents an initial and
significant step in the legislative process. |
France |
Milestone(s) |
September 2026:
all companies to receive e-invoices September 2026: large and
mid-size companies obliged to issue e-invoices September 2027: SMEs
oblige to issue e-invoices |
Details |
In France, the
e-invoicing and e-reporting reform has been postponed. Despite the
delay, updated technical specifications are available. The French
Tax Administration has proposed new deadlines for mandatory
e-invoicing. The e-invoicing reform in France is now officially
rescheduled to start in 2026. |
Poland |
Milestone(s) |
July 2024:
mandatory e-invoicing |
Details |
Mandatory
e-invoicing via the National e-Invoice System effective from 1 July
2024, with preparations underway, including draft amendments for
natural persons designated by taxpayers |
For details on all other countries or details on legislation
please consult the Unifiedpost website.
Contact
Laurent Marcelis
+32 477 61 81 37
laurent.marcelis@unifiedpost.com
About Unifiedpost Group
Unifiedpost is a leading cloud-based platform
for SME business services built on “Documents”, “Identity” and
“Payments”. Unifiedpost operates and develops a 100% cloud-based
platform for administrative and financial services that allows
real-time and seamless connections between Unifiedpost’s customers,
their suppliers, their customers, and other parties along the
financial value chain. With its one-stop-shop solutions,
Unifiedpost’s mission is to make administrative and financial
processes simple and smart for its customers. Since its founding in
2001, Unifiedpost has grown significantly, expanding to offices in
32 countries, with more than 500 million documents processed in
2021, reaching over 1.600.000 SMEs and more than 2.500 Corporates
across its platform today.
Noteworthy facts and figures:
- Established in 2001, with a proven track record
- 2022 turnover €191 million
- 1300+ employees
- Diverse portfolio of clients across a wide variety of
industries (banking, leasing, utilities, media, telecommunications,
travel, social security service providers, public organisations,
etc.) ranging from large internationals to SMEs
- Unifiedpost Payments, a fully owned subsidiary, is recognised
as a payment institution by the National Bank of Belgium
- Certified Swift partner
- International M&A track record
- Listed on the regulated market of Euronext Brussels, symbol:
UPG
(*) Warning about future statements: The
statements contained herein may contain forecasts, future
expectations, opinions and other future-oriented statements
concerning the expected further performance of Unifiedpost Group on
the markets in which it is active. Such future-oriented
statements are based on the current insights and assumptions of
management concerning future events. They naturally include
known and unknown risks, uncertainties and other factors, which
seem justified at the time that the statements are made but may
possibly turn out to be inaccurate. The actual results,
performance or events may differ essentially
from the results, performance or events which
are expressed or implied in such future-oriented statements.
Except where required by the applicable legislation, Unifiedpost
Group shall assume no obligation to update, elucidate or improve
future-oriented statements in this press release in the light of
new information, future events or other elements and shall not be
held liable on that account. The reader is warned not to rely
unduly on future-oriented statements.
- 2023 Q3 Business update - English
- 2023 Q3 Business update - French
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