21 Sep 2020
/ Key word(s): Half Year Results/Forecast
Exasol AG publishes interim financial statements 2020
Nuremberg, 21 September 2020 - Exasol AG (ISIN DE000A0LR9G9; www.exasol.com), a high-performance analytics database, today published its interim consolidated report for the first half of 2020.
Exasol increased the recurring revenue by 29.6% compared to the same period of the previous year to EUR 9.2 million in the first six months of 2020. Annually recurring revenue (ARR) increased by 30.0% year-on-year to EUR 20.8 million at the end of June 2020 (end of June 2019: EUR 16 million). Even compared to the end of 2019 (ARR of EUR 17.6 million), the company was able to grow its ARR by 18.2% despite the challenges caused by the COVID-19 crisis.
At EUR 10.1 million, total revenues were down EUR 0.9 million on the previous year (H1 2019: EUR 11.0 million). The decline is due to the shift in the revenue structure from one-time license revenues to strategically focused, term-based revenues. Accordingly, recurring revenue as a percentage of total revenues rose sharply from 64.2% in the prior-year period to 90.7%.
"We are very satisfied with the first half of the year," said Aaron Auld, CEO of Exasol. "The strong increase in the share of recurring revenue shows that the shift towards a subscription- based Cloud-first business is progressing according to plan. The COVID-19 crisis has had little impact on our business so far. On the other hand, we are seeing an acceleration in digitization projects in individual industries and thus great opportunities for deploying our high-performance analytics database to manage business in a data-driven manner and to increase efficiency and performance."
ARR growth was driven by new business and increasing revenues from existing customers. In the first half of 2020, Exasol was able to win a total of 16 new customers in various regions, including the key markets of the DACH region, U.K. and the USA. Moreover, the company successfully expanded its partner network by signing agreements with another 38 new partners.
As the share of recurring revenue increased, the gross profit margin picked up by a moderate 1.2 percentage points to 92.1%. First-half EBITDA (earnings before interest, taxes, depreciation and amortization) was impacted by extraordinary, non-operating expenses (IPO costs, share-based remuneration payments) and amounted to EUR -15 million (H1 2019: EUR -5.2 million). Adjusted for these extraordinary effects, EBITDA for the first six months stood at EUR -1.8 million (H1 2019: EUR 0.8 million). Earnings after taxes amounted to EUR -16.2 million (H1 2019: EUR -6.7 million) and to EUR -3.0 million in adjusted terms.
"Our operating performance is going according to plan," said Michael Konrad, CFO of Exasol. "As communicated at the time of the IPO, we are currently focusing on the consistent implementation of our growth strategy so as to benefit from global megatrends such as the rapidly growing big data market and the exponential growth of insight-driven companies. To this end, we are focusing on rapidly expanding our sales activities and strengthening our sales teams in the Exasol core markets of the DACH region, U.K. and the USA in order to secure additional market share."
Exasol's total assets increased noticeably to EUR 50.6 million as of 30 June 2020 (31 December 2019: EUR 31.5 million). This is primarily attributable to the capital increase for the IPO. The equity ratio was 45.3%. Cash and cash equivalents amounted to EUR 40.4 million at the end of the reporting period.
The Exasol Executive Board projects annually recurring revenue (ARR) - the key performance indicator for Exasol's business - of at least EUR 24 million by the end of 2020. This corresponds to an expected increase of at least 36% on the comparable prior-year figure.
The interim consolidated report for the first six months of 2020 is published on ir.exasol.com in the Reports and Presentations section.
Exasol Press contact
21.09.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.