Report of the Board of Directors
January 1 - December 31, 2018
Basware is the global leader in networked purchase-to-pay solutions, including e-invoicing and financing services. Basware’s commerce network connects businesses in over 100 countries and territories around the globe. As the largest open business network in the world, Basware provides scale and reach for organizations of all sizes, enabling them to grow their business and unlock value across their operations by simplifying and streamlining financial processes. Small and large companies around the world achieve significant cost savings, more flexible payment terms, greater efficiencies and closer relationships with their suppliers.
|Cloud order intake*||21,474||17,943||19.7|
|Adjusted operating profit/loss||-15,052||-6,814||-120.9|
|Profit/loss before tax||-3,526||-12,276||71.3|
|Profit/loss for the period||-7,077||-11,524||38.6|
|Cash and cash equivalents||40,747||20,683||97|
|Earnings per share, diluted, EUR||-0.49||-0.8||38.6|
|Adjusted earnings per share, diluted, EUR||-1.44||-0.61||-133.8|
*From Q2 2018 onwards cloud order intake is the key order intake figure reported.
The calculation of key figures is presented in the section 'Calculation of Key Indicators'.
Basware’s net sales in 2018 amounted to EUR 141,417 thousand (EUR 149,167 thousand) decreasing 5.2 percent. Organic net sales growth at constant currencies amounted to 5.4 percent. The net sales in 2018 were impacted by the sale of Banking and Financial Performance Solutions in February 2018 as well as foreign exchange movements, especially US dollar.
Net sales by type
|Other cloud revenue||5,036||5,835||-13.7|
|Cloud Revenue total||89,482||80,332||11.4|
|Other non-cloud revenue||6||-129|
|Non-Cloud Revenue Total||51,935||68,836||-24.6|
In 2018 cloud revenue growth on organic basis at constant currencies was 15.6 percent. Cloud revenues accounted for 63 percent (54%) of net sales.
SaaS revenues grew 16 percent and transaction services 11 percent compared to the previous year.
In non-cloud revenues, maintenance and consulting revenues declined in line with expectations as Basware transitions customers to the cloud.
In 2018, Americas accounted for 19 percent (16%), Europe 34 percent (30%), Nordics 42 percent (48%) and Asia-Pacific area for 5 percent (5%) of total revenues. A list of Basware Corporation's subsidiaries is in Note 26 of the Financial Statements.
Annual recurring revenue gross order intake
In 2018, Basware’s total cloud annual recurring revenue (ARR) gross order intake amounted to EUR 21.5 million increasing 20 percent from the previous year’s level. Typically, around one quarter of the new ARR order intake converts into revenues in the year that it is won, with roughly fifty to sixty percent converting to revenues in the second year and the remainder thereafter.
Annual recurring revenue gross order intake
Basware’s adjusted EBITDA was EUR -4,364 thousand (EUR 3,294 thousand) in 2018. The operating loss for the year amounted to EUR -1,471 thousand (EUR -9,509 thousand).
Adjusted operating profit/loss and adjusted EBITDA
|Acquisition, disposal and restructuring income (-)||-17,852||-133|
|Acquisition, disposal and restructuring expenses (+)||2,996||416||620.2|
|Efficiency related expenses||1,275||2,023||-37|
|Adjusted operating profit/loss||-15,052||-6,814||-120.9|
|Depreciation and amortization||10,688||10,108||5.7|
Basware’s profitability in 2018 has been impacted by the disposals that closed in the first quarter and increased spending on sales and marketing, both of which are in line with Basware’s strategy. The disposed businesses contributed roughly EUR 8 million of EBITDA in 2017. Basware spent an additional EUR 6.6 milion in sales and marketing overall in 2018 compared to 2017.
In 2018, Basware’s cost of sales was EUR 69,620 thousand (EUR 75,891 thousand) and total operating expenses including depreciation and amortization EUR 86,510 thousand (EUR 80,194 thousand). Out of total operating expenses, sales and marketing expenses were EUR 43,041 thousand (EUR 36,455 thousand), research and development expenses EUR 27,222 thousand (EUR 29,629 thousand) and general and administration expenses EUR 16,247 thousand (EUR 14,110 thousand). Other operating income and expenses were EUR 13,242 thousand (EUR -2,593 thousand).
The company’s net finance expenses were EUR -1,902 thousand (EUR -1,719 thousand) for 2018.
In 2018, Basware’s profit/loss before tax was EUR -3,526 thousand (EUR -12,276 thousand) and profit/loss for the period EUR -7,077 thousand (EUR -11,524 thousand).
Diluted earnings per share were EUR -0.49 (EUR -0.80) for the financial year.
Financing and investments
Cash flows from operating activities were EUR -6,261 thousand (EUR -4,001 thousand) in 2018. Basware’s operating cash flows are seasonal as a relatively large part of payments for annual maintenance are made in the first quarter.
Basware’s cash and cash equivalents including short-term deposits totalled EUR 40,747 thousand (EUR 20,683 thousand) at the end of 2018. In addition to cash and cash equivalents, Basware has an undrawn revolving credit facility of EUR 10 million, bringing total available liquidity at the end of the year to EUR 50,747 thousand (EUR 30,683 thousand).
Basware’s total assets on the balance sheet at the end of the year were EUR 215,688 thousand (EUR 214,811 thousand). Net cash flows from investments were EUR 18,469 thousand (EUR -12,485 thousand) in 2018.
The equity ratio was 51.3 percent (52.7%) and gearing 14.9 percent (25.2%) in 2018. The company’s interest-bearing liabilities totalled EUR 57,206 thousand (EUR 49,282 thousand), of which current liabilities accounted for EUR 17,089 thousand (EUR 1,996 thousand). The return on investment was -0.9 percent (-5.8%) and return on equity -6.3 percent (-9.4%) in 2018.
Acquisitions and disposals
Basware signed an agreement on February 2, 2018 to sell its Financial Performance Solutions and Banking businesses to Verdane Capital. The divestments were completed on February 28, 2018 and starting from March 1, 2018 Basware Group has not consolidated these businesses in its consolidated financial statements. Group recognized a gain on sale of assets amounting to EUR 16.3 million in the first quarter 2018 as a result of the disposals. The combined sale price of the two businesses was EUR 35.0 million, and after purchase price adjustments related mainly to net working capital, the net cash proceeds from the divestments are estimated to be EUR 30.1 million. In addition, EUR 14.0 million of consolidated goodwill has been allocated to the divested businesses, and EUR 4.8 million of fixed assets, mainly capitalized research and development expenses, was written down.
Basware made no acquisitions in 2018.
Research and development
In 2018 Basware’s research and development focused on improving the performance, resilience and scalability capabilities of Basware’s Source-to-Pay solutions and developed seamless user interfaces that provide the best customer experience. For example, in 2018 Basware moved services to Amazon Web Services, launched a new analytics dashboard and optimized user experience in procurement by introducing a virtual assistant with artificial intelligence (AI) capabilities and natural language processing.
In general, the focus of Basware’s R&D activities is to strengthen the Source-to-Pay offering by extending the business coverage and the underlying system intelligence with AI in addition to continuous development of an integrated user experience across the individual business solutions.
Basware’s research and development investments amounted to EUR 30,093 thousand (EUR 34,251 thousand), of which EUR 8,862 thousand were capitalised. Research and development investments were 21.3 percent (23.0%) of net sales during 2018. A total of 295 (410) people worked in research and development at the end of 2018.
Basware employed 1,676 (1,838) people on average during 2018 and 1,412 (1,829) at the end of the year. Following the partnership with Xerox announced in the third quarter, 387 employees transferred from Basware to Xerox in the fourth quarter.
Average number of personnel
At the end of the year 15 percent of Basware’s employees worked in sales and marketing, 36 percent in R&D and production and products, 39 percent in customer services and 10 percent in administration.
The average age of employees is 37.3 (35.3) years. Women account for 29 percent (28%) of employees, men for 71 percent (72%).
Information about salaries and employee benefits in Note 5 of the Financial Statements.
Share and shareholders
Basware Corporation’s share capital amounted to EUR 3,528,369 (3,528,369) at the end of the year and the number of shares was 14,401,936 (14,401,936). Basware Corporation holds 31,460 (42,233) of its own shares, corresponding to approximately 0.2 percent (0.3%) of the total number of shares.
Basware had 11,508 (11,682) shareholders on December 31, 2018 including nominee registers. Nominee-registered holdings accounted for 52.2 percent (46.7%) of the total number of shares.
Flagging notifications in 2018
|Shareholder||Threshold||Total holding, %|
|January 31, 2018||Op Rahastoyhtiöt Oy||Below 5%||4.60 %|
|February 2, 2018||Massachusetts Mutual Life Insurance Company||Above 5%||5.00 %|
|April 26, 2018||Massachusetts Mutual Life Insurance Company*||Above 5%||6.90 %|
|April 26, 2018||Ilmarinen Mutual Pension Insurance Company||Below 5%||4.60 %|
* Massachusetts Mutual Life Insurance Company has made this filing to identify the holdings of the portfolio Oppenheimer Global Opportunities Fund per new guidance. OppenheimerFunds, Inc., is an investment manager that independently exercises their respective voting power on behalf of the clients and investment funds whose assets they are managing.
More information in sections 'Share indicators' and 'Share and shareholders'. See also Remuneration report for information on Basware's share-based incentive plans.
Annual General Meeting and authorizations of the Board of Directors
Basware Corporation’s Annual General Meeting 2018 was held on March 15, 2018. The Annual General Meeting adopted the financial statements and discharged the responsible parties from liability for the financial period January 1-December 31, 2017. The Annual General Meeting decided that no dividend will be paid for the year 2017.
The Annual General Meeting decided the number of members of the Board of Directors to be six. Mr. Ilkka Sihvo, Mr. David Bateman, Mr. Michael Ingelög and Mrs. Tuija Soanjärvi were re-elected as members of the Board of Directors. Mr. Daryl Rolley and Mr. Asko Schrey were elected as new members of the Board of Directors. In its organizing meeting, the Board of Directors elected Ilkka Sihvo as the Chairman and Michael Ingelög as the Vice Chairman of the Board. Tuija Soanjärvi was elected as the Chairperson of the Audit Committee and Daryl Rolley and Asko Schrey as its members. The Board of Directors also decided to establish a Remuneration Committee. Michael Ingelög was elected as the Chairman of the Remuneration Committee and David Bateman and Ilkka Sihvo as its members.
Ernst & Young Oy, Authorized Public Accounting Firm, was elected as the company’s auditor.
The Board of Directors was authorized to decide on repurchasing a maximum of 1,420,000 company’s own shares. The company’s own shares shall be repurchased otherwise than in proportion to the holdings of the shareholders by using the nonrestricted equity through trading on regulated market organized by Nasdaq Helsinki Ltd at the market price prevailing at the time of acquisition.
The Board of Directors was also authorized to issue a maximum of 2,840,000 new shares and convey a maximum of 1,457,085 of the company's own shares held by the company. The number of shares to be issued to the company itself together with the shares repurchased by the company on basis of the repurchase authorization shall be at the maximum of 1,420,000 shares.
The Board of Directors may grant special rights, which carry the right to receive, against payment, new shares of the company or the company’s own shares held by the company. The maximum number of new shares that may be subscribed by virtue of the special rights granted by the company is in total 1,000,000 shares which number shall be included in the maximum number of new shares stated above. The subscription price of the new shares and the consideration payable for the company’s own shares shall be recorded under the invested non-restricted equity fund. The Board of Directors shall decide on all other terms and conditions related to the authorizations. The authorizations shall be valid until June 30, 2019 and shall revoke the previous authorizations for share issues and granting of stock options and other special rights entitling to shares.
Basware announced via stock exchange release on March 15, 2018 the resolutions of the Annual General Meeting. The resolutions are available at Basware’s investor website.
Corporate Governance Statement
The Corporate Governance Statement is issued separately from the Report of Board of Directors. Basware Corporation's Corporate Governance Statement is available on the company's investor website.
Other events of the period
Move to a functional organization
On May 24, 2018, Basware announced that it will move to a functional organizational structure and establish three new functions: Products, R&D and Production, and Business Development and Alliances as of June 1, 2018. As part of the change, Basware created a new Chief Technology Officer (CTO) position to lead its R&D development.
New Matching Share Plan for key employees
On July 18, 2018, Basware announced its Board of Directors’ decision to establish a new Matching Share Plan 2018-2020 for the Group’s key employees. The aim of the plan is to further align the objectives of shareholders and key employees, to retain key employees at the company, and to offer them competitive reward plans based on acquiring and holding the company’s shares.
The prerequisite for receiving reward on the basis of the Matching Share Plan is that the plan member acquires Basware shares. The plan member will, as a reward, receive matching shares for each share subject to the share ownership prerequisite after a matching period of three (3) years. Receipt of matching shares is contingent on the continuation of employment or service and on the plan member holding the acquired shares upon reward payment. The rewards to be paid in aggregate to plan members correspond to the value of a maximum total of 77,714 Basware Corporation shares, including also the proportion to be paid in cash.
Outsourcing partnership with Xerox on scan and capture services
On July 12, 2018 Basware announced that it had chosen Xerox to operate its scan and capture operations. As part of the outsourcing partnership, 387 employees transferred from Basware to Xerox in the fourth quarter of 2018.
Basware participated in new multi-issuer bond
On September 7, 2018 Basware announced that it participated in a EUR 82 million multi-issuer bond guaranteed by Garantia Insurance Company Ltd with EUR 10 million loan share. The bond’s maturity is five years and its issue date is September 14, 2018. The offering was sold to institutional and other professional investors. The bond bears a fixed coupon interest of 1.375 per cent per annum and the issue price is 99.918 per cent. In addition to coupon interest, Basware pays an annual guarantee fee to Garantia. The proceeds from the loan share will be used for Basware’s general corporate purposes.
Non-binding and highly conditional indicative proposal for a possible tender offer
Basware disclosed on November 16, 2018 and November 20, 2018 that it had been approached by Tradeshift Holdings Inc with a non-binding and highly conditional indicative proposal for a possible tender offer for the entire share capital of Basware. On December 7, 2018, Basware further confirmed that pursuant to the Indicative Proposal, Tradeshift Holdings Inc.’s intention is to launch a recommended public tender offer of EUR 48 per share in cash for the entire issued share capital of Basware on a fully diluted basis. Basware shareholders were reminded that there is no assurance that the Indicative Proposal will result in a tender offer or any transaction.
Changes in Basware's Executive Team
Eric Wilson was appointed as Senior Vice President, North America and as a member of the Executive Team as of January 4, 2018.
Klaus Andersen was appointed as CTO and a member of the
Executive Team as of September 2018.
Basware’s vision is to deliver the best global solution for purchasing, invoicing and paying. Driven by digitalization, automation, and artificial intelligence megatrends, the market opportunity is estimated to be worth EUR 15 billion annually. Basware's long-term growth vision is to reach EUR 1 billion revenues. Basware moves forward to its vision through three strategic focus areas: be the undisputed market leader, simplify global trade interactions and deliver customer value beyond expectations.
The cloud business model that Basware is transforming to is very scalable. This means that as revenues grow, the cost of sales does not grow as quickly, improving Basware’s gross margin over time. As a general cost philosophy, Basware will continuously reallocate spending from less productive to more productive areas.
Basware’s mid-term target is to accelerate annual organic cloud growth to more than 20% by 2022. Basware will increase its investments significantly into sales and marketing during the strategy period 2019 to 2022 in order to grow cloud order intake. Basware has four sources of cloud revenue growth: new customer acquisitions, customer expansions, customer transformations, and partnering:
- Basware’s key growth markets are the US, UK, Germany and France, where we see the greatest opportunity to win new customers.
- Our top 200 key customers bring on average approximately EUR 200 thousand annual recurring cloud revenue. With our investments in account management, customer service and customer satisfaction, we believe that we can significantly increase the average revenue from our key customers.
- Basware is focused on actively transforming the largest on-premise customers to cloud. When our customers transform to the cloud they benefit from a modern, more useable, constantly updated solution and as a result typically the revenues from each of these customers more than double.
- Previously Basware was mainly focused on direct sales, but with the launch of the new partnering function, Basware aims to increase the percentage of cloud revenues from partners to 20% in the long run.
Risks and uncertainty factors
Basware has a growth strategy with high net sales growth expectations for the cloud business. Executing the strategy requires significant investments in sales and marketing and related resources as well as continued investments in product development. At the same time, the industry transformation from an on-premise license-based business model to a SaaS model will accelerate the decline of certain Basware revenue streams, including license sales and maintenance. The transformation will also make consulting revenues more volatile. Until the transformation is complete, this will act as a drag on Group net sales growth.
Additionally, even higher than expected pace in the license to SaaS transformation would have a negative impact on expected net sales in the short term. In addition to SaaS, Basware expects high growth rates in its network-based transaction services which will, besides successful sales effort, also require an efficient supplier onboarding process. Sales from Value Added Services are dependent on Basware’s ability to bring innovative and attractive products to the market according to its planned timetable and move customers quickly to a phase where they are using the services extensively enough to provide meaningful revenue to Basware.
The fact that more than 50 percent of the company’s sales are expected to come from non-euro countries exposes the Group’s net sales growth to foreign exchange rate movements. In case there is a significant movement of GBP, USD, NOK, SEK or AUD against the euro, reported net sales may be affected. In addition, a proportion of Basware’s costs are denominated in INR and RON. The uncertainty around the status of the UK in relation to the European Union may have a negative impact on Basware’s ability to do business in the UK.
Execution of the growth strategy and going through constant change puts new demands on the organization as well as its management and leadership capabilities. The company’s ability to attract, retain and develop the right type of talent to deliver on its strategy is critical as well as management focus and ability to drive change. In order to execute the growth strategy, Basware needs access to financing.
Basware considers acquisitions as part of its strategy. Acquisitions entail risks, such as failure in integrating acquisitions or in ensuring that the planned financial benefits and synergies of the acquisitions materialize.
The cloud transformation process requires cash investment. The company’s ability to secure financing for this transformation may affect its ability to deliver on the strategy.
Basware’s biggest operational risks relate to service disruption as a result of for example data centre failures, various data security threats and non-compliance risks related to Basware’s solutions and services, the company’s activities or its employees’ behaviour. Operational risks are actively managed by continuous improvement in risk monitoring and protection practices as well as internal training of Basware’s personnel.
Basware operates in a market where technological and business model innovation play a key role. While Basware is recognized as a leader within its segments by independent analysts, it is critical that Basware continues to innovate and develop its offering.
In the fourth quarter of 2018, Basware was subject to market speculation around a potential tender offer. This negatively impacted order intake in the fourth quarter of 2018 which will feed through to a negative impact on future cloud revenues. If market speculation about Basware as the subject of a potential takeover approach continues, this may have a negative impact on order intake and customer retention, and may also have a negative impact on employee retention.
Non-financial statement 2018
This statement describes how Basware manages social and environmental challenges in its business operations. Basware is committed to operating responsibly and sustainably, helping customers move to paperless processes, fostering employee welfare and taking care of cybersecurity and data privacy. This statement has been compiled in order to fulfil the reporting requirements on non-financial information as outlined in Chapter 3a, Sections 1-6 of the Finnish Accounting Act.
Basware is the global leader in networked source-to-pay solutions, including e-invoicing and value-added services. Basware’s commerce network connects businesses in over 100 countries and territories around the globe. As the largest open business network in the world, Basware provides scale and reach for organizations of all sizes, enabling them to grow their business and unlock value across their operations by simplifying and streamlining their financial processes. Small and large companies around the world achieve significant cost savings, more flexible payment terms, greater efficiencies and closer relationships with their suppliers.
Basware is comprised of the Group’s parent company, Basware Corporation, and its subsidiaries. Basware Corporation is a public listed company domiciled in Espoo, Finland. Basware Corporation’s shares are listed on Nasdaq Helsinki Ltd. All Basware companies comply with local legislation and other applicable guidelines and requirements.
Basware operates globally and has offices in 14 countries. In 2018, the company’s average number of employees was 1,676 (1,838). At the end of 2018, 27 percent (35%) of the company’s employees worked in India, 26 percent (24%) in Finland, 34 percent (32%) in rest of Europe and 13 percent (9%) in Americas and APAC.
Social and employee matters
Employees are Basware’s most important resource. Operating globally, Basware complies with the standards of the International Labour Organization as well as with all relevant local employment legislation. In addition, Basware is committed to acting in accordance with the United Nations’ Universal Declaration of Human Rights and the principles of the United Nations’ Global Compact. Basware has a global Code of Conduct that applies to all Basware employees globally. The Code of Conduct describes the principles according to which Basware operates and expects its suppliers and partners to operate. 99 percent (94%) of Basware’s employees had completed Code of Conduct training by the end of 2018.
Basware’s ability to attract, retain and develop the right type of talent at all levels is critical for the company’s success. Basware organizes YourVoice employee engagement survey annually and follows up the results through action points each year. In 2018 the survey had a response rate of 90% and the results showed improvements from previous year in several areas from visible company culture to managers’ leadership. Basware promotes learning and development at an organizational, team and individual level and is committed to a safe and healthy workplace.
Women account for 29 percent (28%) and men for 71 percent (72%) of employees. The company’s employees’ average years of service is 4.6 years (4.9) and the attrition rate 13.7 percent (15.3%). 99 percent (98%) of the company’s employees are permanent employees and 97 percent (98%) work full-time. The average age of employees is 37.3 (35.3) years. The company’s CEO-to-employee pay ratio based on base salary is 5.8-to-1 (5-to-1).
Basware supports diversity in the workforce and is committed to equal opportunity in the workplace. Basware does not tolerate any discrimination based on race, color, sex, religion, age, political affiliation, sexual orientation, or origin.
As part of Basware’s commitment to conducting its business in an honest and ethical manner, Basware takes a zero-tolerance approach to bribery and corruption, and upholds all relevant laws to countering bribery and corruption in all jurisdictions it operates in. Basware has an Anti-Bribery and Corruption Policy, which sets out the responsibilities of Basware employees in observing and upholding the company’s position on bribery and corruption and provides guidance for Basware employees on how to recognize and deal with bribery and corruption issues. No bribery or corruption incidents were reported to the company in 2018.
Cyber and information security
Providing digital, cloud-based services and solutions, Basware operates in an industry characterized by a high information security and data privacy risk. Basware takes any threats to its own or its customers’ information systems and data very seriously. Information security risks are integrated into the company’s multi-disciplinary risk assessment. To manage risks arising from information security breaches, Basware has a continuous information security model, which includes tracking and follow-up of any security incidents for mitigation and corrective actions. As part of this model, Basware continuously assesses its systems, support processes and personnel and analyzes implications of any security incidents. Personnel training and certification play a key role in assuring the integrity of the company’s systems and the quality of the company’s customer promise. In addition, Basware’s service integrity control environments are externally audited at regular intervals.
Whilst using Basware’s services, customers transmit orders, invoices and other business data to the company’s applications for further processing. In processing customers’ business contact data identifying individuals Basware complies with all relevant legal requirements governing the protection of personal data.
Basware’s corporate environmental responsibility is incorporated into the company’s business strategy and operations. In its day-to-day activities, Basware complies with all applicable environmental laws and regulations and expects all its suppliers and partners to obey all relevant legal and industry-specific environmental requirements.
Basware’s most material environmental exposures are energy consumption at our office locations and third-party data centres and the impact of business travel and commuting. Basware tracks its greenhouse gas emissions annually and reports them to CDP. Basware has committed to reduce its emissions footprint and to improve the energy efficiency of its office locations. Basware aims to reduce its office based per employee greenhouse gas emissions by 20% by 2020 from 2016 levels. Company employees are encouraged to reduce the need for business travel by using collaborative technologies and online meeting tools.
The direct environmental impact of Basware’s services is estimated to be immaterial to moderate due to the nature of Basware’s business. Basware’s digital solutions and services have the potential to provide Basware’s customers with environmental benefits by automating their financial processes by provision of cloud-based software, thus reducing the use of paper and the reliance on separate, company-specific data centres. Basware is working towards a clearer understanding of the environmental impacts of its solutions and services and is committed to full transparency in communicating about the environmental benefits and burdens of its business.
Operating environment and market outlook
All organisations need to manage their purchasing processes from procurement through to handling invoices and paying them. Currently many organisations only have unsophisticated or partial tools to manage these processes and as a result many are faced with unmanaged spending, inefficient manual and paper-based processes and poor visibility of cashflows. Basware offers a uniquely complete solution for these challenges that is differentiated by the Basware Network, the largest e-invoicing network in the world, and enables customers to manage 100 percent of their spending and make their purchasing processes completely paperless.
Basware expects the demand for networked purchase to pay services to continue to grow. The total potential market for networked purchase to pay services is estimated to be worth EUR 15 billion in annual revenues.
Outlook for 2019
Basware is the global leader in providing networked source-to-pay, e-invoicing and value-added services. Basware’s key strategic priority for the strategy period 2018-2020 is cloud revenue growth. The company continues to strengthen its leading market position in order to grow scalable cloud revenue.
For 2019 Basware expects the following on an organic basis at constant currencies:
- Cloud revenues to grow at approximately 15 percent
- Total revenues to grow at approximately 5 percent
- Adjusted EBITDA to be at breakeven or better
Constant currencies means that the effects of any changes in currencies are eliminated by calculating the figures for the period using 2018 exchange rates. Organic means that the figures are adjusted to remove the effects of any acquisitions or disposals within the past 12 months.
Board of Directors’s proposal for dividend
On December 31, 2018, the Group’s parent company’s distributable funds were EUR 70 066 thousand. The Board of Directors proposes to the Annual General Meeting that no dividend be paid for 2018.
Basware Corporation’s Annual General Meeting is planned to be held on Thursday, March 14, 2019 in Helsinki, Finland.
Espoo, Finland, Wednesday, January 30, 2019
Board of Directors