In 2018 Basware
took big steps forward in its transition to a pure cloud company. Already 63
percent of our revenue came from cloud business. We are approaching the final
stage of our transition journey at good speed. During the past year, we
continued to streamline our operations with divestments, partnerships and new
customer service model among others. Now we are in a better position to capture
the market opportunities and focus our full attention on the global cloud-based
mission is to help our customers to simplify operations and spend smarter.
There is a huge market opportunity ahead of us, worth EUR 15 billion annually.
According to our report based on research from the Hackett Group, less than
half of US companies are prepared to manage rogue spend. As the industry leader
in networked source-to-pay solutions, more than 2,500 companies have chosen us
to solve their inefficient invoice processes, create cashflow visibility and
put all spend under management.
was again recognized as a leader in source-to-pay by an industry analyst, with
a particular emphasis on our customer focus. Throughout
the year, we continued to deliver customer value beyond expectations by
releasing new innovations and enhancements to our solutions. We launched
new innovations such as Basware’s SmartPDF, which makes data capturing from
machine readable PDF invoices more efficient and accurate, and Basware virtual assistant
in procurement, a chatbot feature that tangibly improves the user experience
and reduces the need for customer training.
2018, our net sales were EUR 141 million, of which EUR 89.5 million came from
cloud business. Basware’s annually
recurring cloud order intake amounted to EUR 21.5 million, increasing 20
percent from the previous year’s level. Our key strategic priority is scalable
cloud revenue growth, and we were able to reach an organic cloud growth rate of
16 percent at constant currencies. Our recently established partnering function
had a great start in widening both partner and customer base.
still have a lot of work to be done in order to reach the mid-term target of
accelerating annual organic cloud growth to more than 20 percent by 2022. We
are working towards that goal through four sources of growth: new customer
acquisitions, particularly in our key growth markets; customer expansion
through extra services and geographical coverage; customer transformations from
license to cloud and increasing our net sales via partners. I believe that Basware is well positioned to capture the market opportunities.
Today we connect
more than 1.5
million organizations to our e-invoicing network, while more than 2,500
companies are using our purchase-to-pay solutions. It has been an exciting
growth journey that would not have been possible without a number of people. I
would like to take this opportunity to warmly thank our customers for the trust
in our solutions and services, our partners for the excellent cooperation and
finally, our employees of the great work and dedication in striving toward our
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