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SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

SimCorp A/S
·4-min read

Company Announcement no. 39/2020

Q3 2020 highlights:

  • In Q3 2020, four new SimCorp Dimension deals were signed, of which

    • Two deals were included in order intake and revenue

    • One deal was included in order intake, but revenue recognition has been deferred

    • For one deal, both order intake and revenue recognition have been deferred.

  • Order intake was EUR 21.7m, an increase of EUR 2.6m or 13.6% compared with Q3 2019.

  • Reported revenue was EUR 100.2m, a decrease of 14.7% compared with Q3 2019, due to a very strong Q3 2019 and revenue recognition of two new license deals being deferred.

  • EBIT was EUR 22.4m and EBIT margin was 22.3% compared with EBIT of EUR 35.2m and EBIT margin of 30.0% in Q3 2019.

  • Free cash flow was EUR 17.7m, a decrease of 16.7% compared with Q3 2019.

  • On August 12, SimCorp announced that it had completed the next phase in its cloud transformation, now offering SimCorp Dimension as a Service, on Microsoft Azure.


9M 2020 highlights:

  • In 9M 2020, seven new SimCorp Dimension and three new stand-alone SimCorp Coric license deals were signed, of which

    • Six deals were included in order intake and revenue

    • One deal was included in order intake, but revenue recognition has been deferred

    • For three deals, both order intake and revenue recognition have been deferred.

  • Order intake was EUR 58.5m, a decrease of EUR 4.6m or 7.3% compared with 9M 2019.

  • On September 30, 2020, the order book amounted to EUR 43.8m, an increase of EUR 8.8m compared with the order book at the same date last year.

  • Reported revenue was EUR 309.8m, a decrease of 5.2% compared with 9M 2019, due to a very strong 9M 2019 and revenue recognition of four new license deals being deferred.

  • EBIT was EUR 65.9m compared with EUR 93.9m in 9M 2019.

  • EBIT margin was 21.3% compared with 28.7% in 9M 2019.

  • Net profit was EUR 45.7m compared with EUR 72.6m in 9M 2019.

  • Free cash flow was EUR 70.5m, an increase of 6.8% compared with 9M 2019.

  • SimCorp entered Q4 2020 with EUR 399m of the full year’s revenue signed, which is at the same level as at the same time last year.

Subsequent events:

  • Since the closing of Q3 2020, two SimCorp Dimension contracts and one new SimCorp Coric contract have been signed.

  • On October 12, SimCorp and State Street Bank International GmbH announced a non-binding Term Sheet to form a business partnership to provide a premier, fully integrated, front-to-back investment outsourcing solution, for insurance firms in EMEA.

Financial guidance 2020:

  • SimCorp maintains its expectations for revenue growth and EBIT margin measured in local currencies for 2020 as announced in its Q2 interim report and company announcement dated October 12, 2020.

  • Revenue growth measured in local currencies is expected to be between -5% and 5%, and the expectation for EBIT margin measured in local currencies is between 22.0% and 27.0%.

  • Approximately 1.5%-points (previously 2%-point) of the expected revenue growth is related to the acquisition of AIM Software, and the acquisition is expected to impact the EBIT margin negatively by approximately 1%-point, implying an expected organic revenue growth of between -6.5% and 3.5% (previously between -7% and 3%) and an EBIT margin of between 23.0% to 28.0%.


Klaus Holse, SimCorp CEO comments: ”With a total of ten new clients in the first nine months of the year, our win rate has been satisfactory despite the challenges caused by the Covid-19 pandemic. A strong focus on building strategic partnerships, most recently with State Street, a highly loyal client base, and not least a deeply committed team make me confident that we are well positioned for closing the year on a strong note.”


Investor presentation
SimCorp’s Executive Management Board will present the report at a conference call on Thursday November 12, 2020 at 11:00 am (CET). Please use any of the following phone numbers to dial in to the conference call:

From Denmark:

+45 32720417

From USA:

+1 6467413167

From other countries:

+44 (0) 2071 928338

Pin code to access the call:

6677753

At the end of the presentation there will be a Q&A session.


It will also be possible to follow the presentation via this link:
https://edge.media-server.com/mmc/p/9g6c46eg


The presentation will be available prior to the conference call via SimCorp’s website http://www.simcorp.com/en/about/investor/presentations-and-events/quarterly-and-annual-investor-meetings.

Enquiries regarding this announcement should be addressed to:
Investor contacts:
Klaus Holse, Chief Executive Officer, SimCorp A/S (+45 3544 8800, +45 2326 0000)
Michael Rosenvold, Chief Financial Officer, SimCorp A/S (+45 3544 8800, +45 5235 0000)
Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8822, +45 2892 8881)

Media contact:
Mette Trier, Communications Principal, SimCorp A/S (+45 4060 8296)
Mittal Shah, PR Manager – SimCorp UK, North America, Asia Pacific (+44 (0)207 397 8072)

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