Growth in revenue of +7% in 2023, with SaaS subscriptions up by a substantial +69%
ARR from SaaS subscriptions at 31 December 2023: €40.1m up +46% driven by the gradual transformation of the sales model
International: revenue of €100m in 2023, representing 36% of Group activity
EBITDA margin of 9.8%: transformation of the Group's business model in the scope of the implementation of the new SHIFT5 strategic plan
Strengthening of activities in the UK: acquisition of SOLID Applications, Value-Added Reseller of Dassault Systèmes' SOLIDWORKS suite
Lyon, 19 March 2024 - 6:00 p.m. Visiativ, a digital transformation and innovation expert for small and medium-sized businesses, is listed on Euronext Growth in Paris (FR0004029478, ALVIV).
Bolstered by record sales in Q4, Visiativ reported +7% growth in sales for 2023, marked by the buoyancy of the CONSULTING division (+14%) and the ongoing transformation of the SOFTWARE division's sales model, with SaaS subscriptions gaining +69% year-on-year, in line with the SHIFT5 strategic plan. ARR (Annual Recurring Revenue) came in at €40.1m at the end of December 2023, up +46% year-on-year.
EBITDA was down slightly (-5%) due to the adaptation of sales force incentives to the new sales models, the All Visiativ[1] program and international marketing investments related to the standardisation of subsidiary brands. The EBITDA margin thus came in at 9.8% in 2023, versus 11.0% one year prior. Net income (Group share) amounted to €10.0m in 2023.
Visiativ announces the acquisition of SOLID Apps, the distributor and integrator of SOLIDWORKS solutions published by Dassault Systèmes. SOLID Apps benefits from an installed base of over 600 customers and generated sales of £3m in 2023, 70% of which are recurring.
In 2024, Visiativ will continue to roll out its SHIFT5 strategic plan, which focuses on international development and the transition of its sales model towards SaaS subscriptions. For 2028, Visiativ is targeting sales of €500m, 50% of which generated internationally, and ARR from SaaS subscriptions of €100m.
At the end of February 2024, Groupe SNEF and the main shareholders of Alliativ (Visiativ's controlling shareholder) signed a share transfer agreement enabling Groupe SNEF to acquire around 75.72% of Alliativ's capital. The acquisition is expected to be made by way of a cash sale, on the basis of a value through transparency equal to a price of €37.00 per Visiativ share (coupon attached), and to be followed by the filing of a proposed public tender offer for the remaining Visiativ shares at a unit price of €37.00 per share.
| Data in €m (audited)a French accounting standards | 2022 (12 months) | 2023 (12 months) | Change |
| Revenue | 258.8 | 277.5 | +7% |
| EBITDAb | 28.4 | 27.1 | (5%) |
| EBITDA margin % | 11.0% | 9.8% | |
| Operating profit | 19.0 | 17.5 | (8%) |
| Operating margin % | 7.3% | 6.3% | |
| Non-operating income and expenses | -3.2 | -5.1 | |
| Exceptional items | 0.0 | 2.9 | |
| Net income (Group share) | 11.1 | 10.0 | (10%) |
a The full-year consolidated financial statements were approved by the Board of Directors at its meeting on 15 March 2024. An audit procedure of the consolidated financial statements was conducted and the statutory auditors' report is being prepared.
b Earnings before depreciation and amortization of intangible assets.
FULL-YEAR 2023 REVENUE UP +7% TO €277.5M
Driven by a new quarterly sales record in Q4 2023 (€104.1m in billings), Visiativ's consolidated revenue totalled €277.5m for the full year 2023, an increase of +7% (stable on an organic basis).
The CONSULTING division achieved growth of +14% (+6% organic) while the SOFTWARE division grew by +4% (-3% organic), including +69% growth in SaaS (Software as a Service) subscriptions under the impetus of the sales model's gradual transformation, in line with the SHIFT5 strategic plan. SaaS subscriptions represent 21% of the SOFTWARE division's billings in 2023, versus 13% in 2022.
At end-December 2023, ARR from SaaS subscriptions totalled €40.1m, versus €27.4m one year prior, representing growth of +46% (+35% organic), and €33.1m at end-June 2023, i.e. sequential growth of +21% in H2 2023.
Buoyed by the growth momentum of SaaS subscriptions, recurring business (multi-year contracts, software maintenance, SaaS contracts and subscriptions) increased by +11% in 2023, now accounting for 70% of annual revenue, a historically high level.
Finally, international activities continued to grow at a sustained pace of +9% (stable at constant scope and exchange rates), breaking the €100 million barrier in annual revenue, representing 36% of the Group's total revenue.
EBITDA MARGIN OF 9.8% IN 2023: ALIGNMENT OF VISIATIV'S MODEL TO IMPLEMENT THE SHIFT5 STRATEGIC PLAN
At the close of FY 2023, EBITDA[2] stood at €27.1m, a limited decline of -5% versus 2022. In the wake of the first half-year, marked by the implementation of actions and investments aimed at aligning the Group and its model ahead of the launch of the SHIFT5 strategic plan, this annual decline ties in mainly with:
- the year-on-year rise in personnel costs (17.9m, an increase of +17%) due to the impact of companies that joined the Group in recent months, particularly internationally (MB CAD, Braithwaite, Daxium, Absiskey), and to changes in the sales force incentive model, now based on bookings;
- the rise in external purchases and expenses (€3.7m, an increase of +8%), due to marketing investments to standardise brands as part of international expansion (UK, Germany, Benelux, Switzerland), and to increased investment in the CSR policy and the All Visiativ employee experience program.
The Group's EBITDA margin came in at 9.8%, compared with 11.0% one year prior. Given the seasonal nature of Visiativ's business, the EBITDA margin was 12.1% in H2 2023 (reminder: 6.8% in H1 2023), compared with 12.9% in the H2 2022.
In France, Visiativ recorded an EBITDA margin of 9.7% versus 9.9% in 2022, due to changes in the sales force incentive model.
Internationally, profitability represented 9.9% of the EBITDA margin versus 12.8% in 2022, taking into account marketing investments made to standardise brands.
NET INCOME OF €10.0M
After taking into account net depreciation and amortisation, operating income came to €17.5m, giving an operating margin of 6.3% compared with 7.3% one year earlier.
Net financial expense amounted to €5.1m, compared with €3.2m in 2022, due to the increase in debt resulting from acquisitions and higher interest rates. To guard against a rise in interest rates, a hedging contract was signed in early 2023, covering the interest on 50% of the variable-rate debt.
Visiativ booked net proceeds of €3.1m corresponding to the partnership signed with XEFI for the transfer of its 100% stake in Visiativ Managed Services, an IT infrastructure and hosting manager, to XEFI's NEXEREN datacenter subsidiary.
Finally, net profit (Group share) came to €10.0m in 2023, compared with €11.1m the previous year.
At its meeting on 15 March 2024, in view of the proposed acquisition by Groupe SNEF, the Board of Directors decided to propose to shareholders at the Annual General Meeting on 21 May 2024 that no dividend be paid.
€54.6M IN AVAILABLE CASH AT END-2023
Cash flow at end-2022 amounted to +€24.8m, vs. +€27.2m one year prior.
Despite the high level of activity in Q4, the change in the working capital requirement was contained (-€4.3m), enabling Visiativ to post a solid operating cash flow of +€20.5m in 2023 (vs +€24.5m in 2022). After deducting net financial expenses, corporation tax and other operating expenses, net cash flow from operating activities totalled €13.3m.
Cash flow from investing activities was -€16.5m, including €6.4m for acquisitions (EBM, Techform, MMP Tax and 1Life) and buyouts of minority interests, and €13.5m in CAPEX (including €9.0m of R&D capital expenditure), less €3.0m in divestments (VMS).
Cash flow from financing activities was stable in 2023 (-€0.1m), including +€5.0m in dividends for FY 2022, +€3.9m in net borrowings and +€1.1m in capital increases following the 2023 employee share ownership plan campaign.
In 2023, the change in cash and cash equivalents amounted to -€3.3m, compared with -€10.8m the previous year.
At 31 December 2023, Visiativ's available cash totalled €54.6m for loans and financial debts of €114.0m, including the €23.8m state-backed loan (PGE), which is being repaid on a straight-line basis over four years from May 2022, the €20m Euro PP bond which matures in May 2025, and €18.4m in BPI debts.
At end-FY 2022, net financial debt[3] totalled €59.4m and shareholders' equity amounted to €79.9m, representing a net gearing[4] of 74%.
NEW CSR ROADMAP THROUGH THE SHIFT5 PLAN: TO BE AMONG THE LEADERS
FY 2023 was marked both by the successful finalisation of the CSR roadmap for the 2019-2023 period, and the launch of a new trajectory in terms of Corporate Social Responsibility in the scope of the SHIFT5 strategic plan with the aim of positioning the Group among the most invested companies in terms of CSR.
In 2023, Visiativ achieved 14 of the 17 SMART extra-financial objectives set in 2019, contributing notably to the United Nations' Sustainable Development Goals (SDGs). Among the main sources of satisfaction are the 3-fold increase in the number of disabled employees between 2020 and 2023, the achievement of a 35% female representation within the organisation (vs. an initial target of 33%) and a good level in management positions, the doubling of the financial resources allocated to social and environmental sponsorship initiatives, and the 16% reduction in greenhouse gas (GHG) emissions per employee compared with 2019. Furthermore, Visiativ has renewed its annual commitment to the United Nations Global Compact on social, societal and environmental responsibility.
In the scope of its SHIFT5 strategic plan, Visiativ now plans to focus its efforts on the 6 development areas of its CSR strategy: Customer Satisfaction & Value proposition, Governance & Responsibility, Responsible Purchasing, All Visiativ Employee Experience, Environmental Footprint and Societal Footprint.
Visiativ's CSR main objectives for 2028 in the scope of SHIFT5 are to:
- Enhance the CSR dimension of our offers, and developing a dedicated offering to enable customers to implement their own actions;
- Reinforce our ethical requirements with respect to all our stakeholders;
- Deploy Visiativ's CSR standards with all our suppliers in order to build a responsible value chain;
- Build a truly responsible employer brand and optimising the employee experience internationally;
- Accelerate the reduction of our carbon footprint in the scope of a 2035 trajectory aligned with SBTi's Corporate Net-Zero Standard;
- Support local philanthropy and linking it to employee commitment.
In terms of ratings, Visiativ remained in the Gold category of the extra-financial rating agency EthiFinance Ratings (formerly Gaïa Research) in 2023, improving its rating. With a score of 75/100, its extra-financial performance has improved compared with 2022 in each of the areas evaluated, as listed below:
- Environment: 67/100 (vs. 56/100 in 2022)
- Social: 81/100 (vs. 79/100 in 2022)
- Governance: 67/100 (vs. 65/100 in 2022)
- External stakeholders: 91/100 (vs. 90/100 in 2022).
ACQUISITION PROJECT OF A MAJORITY STAKE IN ALLIATIV (CONTROLLING SHAREHOLDER OF VISIATIV) BY GROUPE SNEF
On 9 February 2024, Visiativ announced that the main shareholders of ALLIATIV, Visiativ's controlling shareholder, had entered into exclusive negotiations with Groupe SNEF with a view to the acquisition by Groupe SNEF of a majority stake in the capital of ALLIATIV.
On 27 February 2024, Groupe SNEF and the main shareholders of ALLIATIV signed a share transfer agreement enabling Groupe SNEF to acquire approximately 75.72% of ALLIATIV's capital.
The transaction could be completed during the first half of 2024 and remains subject to obtaining the usual regulatory authorisations in terms of merger control, as well as the formal approval of certain of Visiativ's commercial partners.
The acquisition is expected to be financed by way of a cash sale, on the basis of a value through transparency equal to a price of €37.00 per Visiativ share (coupon attached), and to be followed by the compulsory filing by ALLIATIV of a proposed public tender offer for the remaining outstanding Visiativ shares and all the bonus shares potentially to be issued before the close of the public tender offer, at a unit price of €37.00 per share (coupon attached).
STRENGTHENING OF ACTIVITIES IN THE UNITED KINGDOM: ACQUISITION OF SOLID APPLICATIONS
Following the acquisition last October of MMP Tax, a London-based consultancy firm, Visiativ has strengthened its presence in the UK with the acquisition of SOLID Applications Ltd, a UK distributor and integrator of SOLIDWORKS solutions (SOLIDWORKS 3D CAD, SOLIDWORKS Simulation, SOLIDWORKS Product Data Management, etc.) published by Dassault Systèmes.
Founded in 1998 by Chris Hill, SOLID Applications has 15 employees based in Birmingham and in several other locations in England (Manchester, Oxford and London).
With strong technical expertise in 3D design and PLM, SOLID Applications benefits from an installed base of over 600 customers.
In 2023, SOLID Applications generated sales of £2m, 70% of which were recurring.
The acquisition of 100% of the share capital of SOLID Applications, financed entirely in cash, has been finalised. The company has been consolidated since 1 January 2024.
These recent operations will enable Visiativ to pursue its dynamic development in the UK, by strengthening both its management consulting and innovation financing activities, and by extending its customer base in the 3DEXPERIENCE market, with several hundred new accounts, a source of cross-selling with its other activities.
OUTLOOK
In the scope of the SHIFT5 strategic plan, launched in September 2023, Visiativ has set itself the financial target of achieving sales of €500m by 2028, 50% of which internationally, by combining organic growth and acquisitions, while ramping up the SaaS subscription model to bring ARR to the €100m mark.
To meet the challenges that face the industry of the future and those posed by innovation, Visiativ intends to focus on these strategic objectives in 2024, with a focus on its international development and the shift in its sales model towards SaaS subscriptions.
As part of its international expansion, Visiativ is continuing to extend its offerings in Europe and has announced the creation of a new subsidiary, Visiativ Poland, in March 2024, headed by Adam Bator, former Managing Director of a leading CAD integrator, with almost 20 years' expertise in SOLIDWORKS solutions.
Visiativ is already present in Poland with its consulting business under the Absiskey brand, in Germany following the acquisition of MB CAD GmbH in 2022, and in Austria following the acquisition of EBM GmbH in 2023.
FINANCIAL AGENDA
| ÉVENEMENTS | DATES |
| Q1 2024 revenues | Wednesday 24 April 2024 |
| Annual General Meeting | Tuesday 21 May 2024 |
| Q2 2024 revenues | Wednesday 24 July 2024 |
| H1 2024 results | Monday 23 September 2024 |
| Q3 2024 revenues | Thursday 24 October 2024 |
| Full-year 2024 revenue | Monday 27 January 2025 |
| Full-year 2024 results | Monday 24 March 2025 |
These dates are an indication and may be changed if necessary. All publications will be issued after close of trading markets on Euronext Paris.
ABOUT VISIATIV
Visiativ's mission is to make digital transformation a performance lever for companies. We do this by co-building alongside our customers, over the long term. We call this our promise: "Sharing, is growing".
We support our customers by providing solutions and services to plan, implement, manage and monitor transformations with a unique and innovative approach through three pillars: Consult (consulting & support), Engage (solutions & deployment) and Connect (communities for exchange and sharing). With over 35 years of proven experience working with more than 25,000 Small & Mid-Market customers, Visiativ has achieved revenues of €277 million in 2023. Visiativ is present both in France and abroad (Austria, Belgium, Brazil, Canada, Germany, Luxembourg, Morocco, the Netherlands, Poland, the United Kingdom, U.A.E, USA and Switzerland) and has more than 1,500 employees.
Visiativ (ISIN code FR0004029478, ALVIV) is listed on Euronext Growth in Paris. The share is eligible for PEA and PEA-PME.
For further information visit www.visiativ.com
| VISIATIV CONTACT Lydia JOUVAL External Communication Tel.: +33 (0)4 78 87 29 29 lydia.jouval@visiativ.com | INVESTOR CONTACT ACTUS Mathieu OMNES Tel.: +33 (0)1 53 67 36 92 momnes@actus.fr | PRESS CONTACT ACTUS Serena BONI Tel.: +33 (0)4 72 18 04 92 sboni@actus.fr |
[1] Deployment of new programmes to unify the "All Visiativ" user experience
[2] Earnings before depreciation and amortization of intangible assets.
[3] Available cash - Borrowings and financial debts
[4] Net financial debt to consolidated equity ratio
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