21 Feb 2020
DGAP-News: EXASOL AG
/ Key word(s): IPO
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- Exasol AG ("Exasol" or "Company") is a global technology company providing a next generation software-based "data engine" that enables customers to access and analyse their databases at unmatched speed and scale
- Well-positioned to capitalize on global megatrends including the fast-growing big data market, and the outsize growth of insights driven businesses, disrupting a USD 46bn total addressable Database Management System (DBMS) market traditionally dominated by legacy players
- Solid Track record of growth with accelerated Annual Recurring Revenue (ARR) organic growth of 45% in November 2019 vs. the prior year month
- Attractive business model with recurring revenue accounting for 72% of total revenue and a strong and stable operating gross profit margin of 91%
- The planned IPO consists of a new share issue by the Company of approximately EUR 50 million, a placement of shares by certain minority shareholders and a customary over-allotment option
- The Company plans to invest the proceeds of the IPO to drive its growth strategy - particularly to enhance sales force as well as distribution and marketing power in the DACH (Germany, Austria, Switzerland) region, the UK and the US
- Intended listing is on the Frankfurt Stock Exchange and is expected to complete in Q1 2020
Aaron Auld, CEO of Exasol AG comments:
Founded in 2000, the Exasol Group today has more than 180 employees spread across its offices in Nuremberg, Berlin, Hanover, London and Atlanta and offers its high-end database solutions for an array of 166 customers around the globe, among them high-profile corporates such as Adidas, Dell, Vodafone and Zalando. Strong customer loyalty is underpinned by a low annual customer churn rate in the range 4 to 5.5 % between 2016 and 2018.
Exasol's management team, Aaron Auld (CEO) and Mathias Golombek (CTO), have been working together at Exasol since 2006, developing the Company into a technology leader in the data warehouse market. Michael Konrad joined Exasol as CFO in 2015, previously holding CEO and CFO positions in other listed software companies.
Exasol plans to realize significant growth in four core areas:
The Company aims to expand its international footprint. The Exasol sales team has historically focused on the DACH region but intends to expand sales and marketing operations in further growth markets in Europe, particularly the UK, and in the US, where teams have already been established.
A second strategic focus is the expansion of the Company's partner ecosystem, i.e. large system integrators, business intelligence and analytics consultants and value-added resellers. Exasol intends to lower the barriers to entry for co-selling and deploying of Exasol's database with selected premium partners and plans to provide incentivisation and qualification programmes.
Another strategic focus is the scale of Exasol's existing customer base through product improvement and specific value propositions. Exasol's monthly recurring revenue cohorts have been expanding consistently in the transition from a license to a subscription-based model with strong customer loyalty. Exasol aims to grow its customer relationship headcount alongside a new strategy of providing further flexibility to customers on a usage and consumption based license model.
In addition to these organic growth initiatives, Exasol may opportunistically engage in M&A transactions, which would support Exasol's market positioning and reach in certain industry sectors or relevant analytics use cases.
Exasol's scalable infrastructure and platform allow it to yield a stable and high gross profit margin. Operating gross profit margin was 91% for the 11 months ended 30 November 2019 having been above 80% and consistently increasing annually every year since 2017.
Exasol's attractive financial profile is supported by strong visibility of revenues and low annual customer churn rates. Exasol's recurring revenue as a percentage of total revenue, including subscriptions and recurring support contracts, was 72% for the 11 months ended 30 November 2019 having increased from 66% in fiscal year 2018 following its ongoing transition from a license to a subscription-based model. In the 11 months ended 30 November 2019 annual customer churn was 4.1%.
Hauck & Aufhäuser will act as Sole Global Coordinator and Sole Bookrunner for the IPO.
Exasol Press contact
To learn more about Exasol please visit www.exasol.com
This announcement does not contain or constitute an offer to sell nor a solicitation to buy or subscribe for securities.
This announcement is not a prospectus. Potential investors should not purchase or subscribe for any securities referred to in this announcement except on the basis of the information contained in the prospectus to be issued by the Company in connection with the public offering of such securities (including any supplements thereto). Copies of such prospectus will, following approval by the German federal financial supervisory authority (Bundesanstalt für Finanzdienstleistungsaufsicht - BaFin) and publication, be available free of charge from EXASOL AG, as well as, for viewing in electronic form, on the website of the Company.
This announcement is not an offer of securities for sale in the United States of America (the "United States"). Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). Any public offering of securities to be made in the United States would be made by means of a prospectus that could be obtained from the Company and that would contain detailed information about the Company and its management, as well as the financial statements of the Company. There will be no public offer of the securities in the United States.
In the United Kingdom, this information is directed at and/or for distribution only to (i) investment professionals falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) high net worth companies falling within article 49(2)(a) to (d) of the Order (all such persons are collectively referred to herein as "relevant persons"). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this information or any of its contents.
In member states of the European Economic Area ("EEA"), in which the regulation (EU) 2017/1129 as amended (the "Prospectus Regulation") is in effect other than Germany and the United Kingdom (the "Relevant Member States"), this announcement, and any offer following it, is only addressed to persons who are 'qualified investors' within the meaning of Article 2(e) of the Prospectus Regulation ("Qualified Investors"). It is assumed that each person in the Relevant Member States who acquires or is offered securities as part of an offering (an "Investor") has represented and agreed that such person is a Qualified Investor; that securities purchased by such person as part of the offering are not being purchased for any person in the EEA other than a Qualified Investor or persons in Germany, the United Kingdom or another Relevant Member State with comparable legal provisions, with respect to whom the Investor may make decisions at its own discretion; and that the securities would not be purchased for offer or re-sale in the EEA, if this would lead to Exasol AG or any of its affiliates being required to publish a prospectus under Article 3 of the Prospectus Regulation.
Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan.
Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," or, in each case, the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with our industry, as well as many other risks specifically related to the Company and its operations.