Board of Directors approves the draft financial statements and consolidated financial statements as of December 31, 2022, prepared for the first time in accordance with the international accounting standards IFRS
DOXEE CONTINUES TO GROW AND ACCELERATES THE INVESTMENTS ENVISAGED IN ITS DEVELOPMENT ROADMAP
• Revenues: 25.5 €M (2021: 20.8 €M)
• Value of Production: 28.7 €M (2021: 23.6 €M)
• EBITDA1: 4.9 €M (2021: 5.5 €M), EBITDA MARGIN: 17.2%
• EBIT: 1.8 €M (2021: 1.9 €M)
• Group Net Profit: 1.2 €M (2021: 1.8 €M)
• Net Financial Debt: 14.4 €M (2021: 3.3 €M), of which about 4,8 €M related to the application of IFRS and 8.3 €M to the acquisition of 90% of Infinica GmbH
• Approved 2022 Sustainability Report and Impact Report
Modena, March 28, 2023
The Board of Directors of Doxee (DOX: IM), a leading high-tech multinational provider of Customer Communications Management (CCM), Digital Customer Experience, and Paperless, met today to approve the draft financial statements and consolidated financial statements as of December 31, 2022, prepared for the first time in accordance with IAS/IFRS International Accounting Standards.
Sergio Muratori Casali, CEO of Doxee, commented as follows: “For us, 2022 was an important year, in which we intended to lay the groundwork to further accelerate the process of development undertaken so far, also thanks to the opportunity to carry out a strategic acquisition, which will start producing the expected benefits as early as this year. In terms of results, in 2022, the Doxee Group recorded growth in revenues exceeding 22% compared to 2021, testifying to the Group’s correct positioning in the international markets of digitization of communication processes for companies and the public administration. Due to this growth, we have further accelerated strategic investments in line with our roadmap. First and foremost is the investment in the acquisition of Infinica GmbH, which, thanks to its established customer base and the possibility to integrate cloud products into a single portfolio of products and services dedicated to supporting the Digital Customer Experience of Enterprise and SME customers, will allow the Group to commercially expand to the DACH and Eastern European areas. We also made significant investments in R&D and in strengthening the organizational structure, particularly in the sales team, to develop new markets, also by extending the partner network, the strengthening of which is essential to support organic
1 EBITDA is defined by Doxee as Earnings Before Tax (EBT), as reported in the consolidated income statement before (i) financial income and expenses, (ii) amortization of intangible assets, (iii) depreciation of tangible assets, and (iv) provisions. Since EBITDA is not identified as an accounting measure under the IAS-IFRSs adopted by the Company, its quantitative calculation may not be unambiguous.
growth with a view to scalability of the Group’s business model. The year 2022 was another important year for the development of the Doxee Platform® technology asset. As a result, we will continue to grow not only in business volume but also in profitability and efficiency. From 2023, we expect considerable synergies from the integration with Infinica GmbH, both in terms of cross-selling and up-selling, but also with a view to development of joint product innovation of the platform, due to the focus on the respective excellences and specializations with a sharp acceleration on the defined roadmap.”
The year 2022 also showed significant revenue growth, confirming the success of Doxee’s process of development both in Italy and internationally, with particular focus in the DACH area, also due to the newly acquired Infinica GmbH. Specifically, growth continues in our main Telco and Utilities markets, in which the portfolio of products and services makes it possible to satisfactorily respond to digitalization demands and increases contract value generated on the Group’s key customers through up-selling and cross-selling of products offered. Also noteworthy, with the support of the NRRP, was the increase in revenues from the Public Administration sector: in 2022, those revenues increased by 34% compared to 2021, double the +17% growth recorded in the previous year, thanks to the component of indirect sales through strategic partnerships, and the awarding of major tenders with the Central Government. The Public Administration is confirmed to be a major user of technologies in the interactive experience (ix) line, with the product Doxee Pvideo → which empowers central and local governments with effective digital communications to promote services dedicated to citizens through personalized videos.
Investments aimed at supporting the evolution of the Doxee Platform → also continued in 2022, from a Customer Communications Management (CCM) platform to a Customer Experience Management (CXM) model to support companies in the complete and efficient management of all multichannel interactions with their customers.
Doxee’s development strategy, aimed at establishing itself as one of Europe’s leading technology vendors in the Digital Customer Experience and CCM fields, has been driven not only by strong organic growth of the Company but also by growth through external lines in international markets, achieved through the acquisition of 90% of Infinica GmbH (“Infinica”), an Austrian company specializing in software development in the CCM sector, in September 2022.
Evolution of the Doxee Platform
During 2022, core platform components were released to the market with an agile approach, according to the planned roadmap, which will produce initial results in terms of operational efficiency and revenues as early as 2023. Specifically, the Batch Production and Data Transformation components have been implemented and released, enabling the mass production of documents such as account statements, invoices and additional types of transactional communications, for a total of approximately 9 billion documents per year. In addition to these core components, the entire stack that enables paperless experience line products dedicated to e-invoicing and the analytics tools component, for electronic order and e-invoice tracking, were also released to the market. In 2022, Doxee Pvideo technology was also implemented within the new platform and the Doxee Booster product, which enables companies to manage the data lifecycle of the data it generates and define automated communications workflows based on user behavioral data, was launched. Also in the area of interactive experience, in the second half of 2022, technological convergence on videopersonalization technology began with the aim of enabling specific use cases for the Automotive, Retail and Fashion markets by using Adobe After Effect software2.
Lastly, during 2023, the technological integration of Infinica’s platform will continue, the effects of which will be seen from the third quarter of 2023 regarding the Interactive Correspondence component. Investments in this area will also enable the expansion of target markets to the Salesforce area (a certified plug-in on Marketplace AppExchange) and, also during 2023, to the SAP and Microsoft communities, through the indirect sales model.
MAIN CONSOLIDATED RESULTS AS OF DECEMBER 31, 2022
The separate and consolidated financial statements as of December 31, 2022, are the first to be prepared by Doxee in accordance with the IAS/IFRS issued by the International Accounting Standards Board (IASB) and the interpretations of the International Financial Reporting Standard
Interpretation Committee (IFRS IC, formerly IFRIC) and the former Standing Interpretations Committee (SIC) (hereinafter “IAS/IFRS Standards“), which were endorsed by the European Union following the entry into force of Regulation (EC) No. 1606/2002 issued by the European Parliament and Council in July 2002.
For Doxee, the date of first application of IAS/IFRS (hereinafter referred to as the “Transition Date“), based on the provisions of IFRS 1, has been set at January 1, 2021.
It should also be noted that Infinica GmbH, heading the Austrian group specializing in software development in the CCM area, which was acquired on September 29, 2022 is consolidated in the consolidated financial statements as of December 31, 2022 – fully, with regard to the balance sheet data, and for a period of three months (fourth quarter 2022) with regard to the income statement data.
Revenues sales amounted to Euro 25.5 million, up 22.2% on Euro 20.8 million in 2021. The positive performance of revenues confirms the validity of Doxee’s development path and its correct positioning. In particular, the product lines that made the greatest contribution to revenue performance were document experience, with revenues of Euro 15.6 million, compared with Euro 13.1 million in 2021, and interactive experience, with revenues of Euro 4.3 million (Euro 3.6 million in 2021). The paperless experience product line recorded revenues of Euro 5.6 million, compared to previous year’s figure (Euro 4.1 million).
Infinica GmbH contributed to Euro 1.4 million to the generation of the consolidated revenues shown above, solely considering the revenues realized in the fourth quarter of the year (period subject to consolidation).
Recurring Revenues, thanks also to the increase in the activities provided in SaaS mode, stand at around 72% of total revenues.
The Value of Production amounted to Euro 28.7 million (Euro 23.6 million in 2021).
The Contribution Margin stood at Euro 16.0 million, compared to Euro 13.2 million in 2021.
2 Composting application which can be used to combine visual elements from separate sources, or to apply video effects.
The substantial investments made during the year aimed at accelerating the roadmap resulted in a substantial increase in indirect and R&D costs compared to the previous year (Euro 11.0 million in 2022 compared to Euro 7.8 million in 2021). This increase was temporarily reflected in the Group’s margins, recording an EBITDA at Euro 4.9 million, compared to Euro 5.5 million recorded in 2021.
In particular, investments in R&D amount to a total of Euro 6.3 million (Euro 4.3 million in 2021) and correspond to approximately 22.0% of the Value of Production in 2022, confirming the Group’s intention to pursue its strategic objectives in terms of product and process innovation. Compared to the total amount of investments, Euro 2.1 million is posted in the income statement, while the remaining amount of Euro 4.2 million, attributable to costs for external consulting, was capitalized in the balance sheet as a result of the application of the IAS/IFRSs.
R&D’s focus was on advancing the new release of the Doxee Platform®, a cloud-native platform, entirely designed on multi-cloud architectural paradigms and capable of supporting customers in delivering interactive experiences in a complete omnichannel and global scale. This release is estimated to be completed by the end of 2023.
Moreover, during 2022 the workforce increased – with the related reflection on personnel costs – from 142 employees in 2021 to 152 employees in 2022 of the Group alone, plus 29 specialists of Infinica GMbH following the acquisition. The increases in the Group specifically regarded hiring in the Operations and Sales & Marketing areas of Doxee S.p.A.
After amortization, depreciation, write-downs, and provisions of Euro 3.1 million (Euro 3.5 million in 2021), which were largely related to investments in technological development, EBIT amounted to Euro 1.8 million (Euro 1.9 million in 2021).
EBT stood at Euro 1.6 million (Euro 2.0 million in 2021), while Group Net Profit amounted to Euro 1.2 million (Euro 1.8 million in 2021).
Net Invested Capital, at Euro 27.9 million (Euro 12.1 million as of December 31, 2021), marked an overall increase of Euro 15.8 million. The change was the result of an increase of Euro 16.1 million deriving from the growth in Fixed Assets, specifically in intangible assets, and an overall decrease of Euro 0.3 million in all other items comprising Net Invested Capital, of which Euro 0.2 million pertaining to Net Working Capital.
Fixed Assets, net of deferred tax assets and other non-current assets, amounted to Euro 8.5 million (Euro 12.4 million as of December 31, 2021), increasing by Euro 16.1 million, of which Euro 3.5 million attributable to capitalized costs pertaining to investments in the new release of the Doxee Platform®, and Euro 11.8 million attributable to the recognition of goodwill arising from the acquisition of Infinica.
The Doxee Group’s Net Financial Debt amounted to approximately Euro 14.4 million (Euro 3.3 million as of December 31, 2021), of which cash and cash equivalents of Euro 2.6 million. Among non-current bank payables, amounting to Euro 11.7 million, Euro 9 million is composed of medium-long term liabilities (duration of 6-8 years) at floating interest rates with interest rate risk hedging. The worsening of the Net Financial Debt, which is considered physiological and sustainableby the Group, was mainly due to the financing of the acquisition of Infinica, finalized at the end of September 2022, which involved a total cash outlay of Euro 8.3 million. A further worsening impact results from the transition to IAS/IFRS: that effect can be quantified as a total of approximately Euro 4.8 million, of which Euro 1.3 million relating to the application, for the first fiscal year, of accounting standard IFRS 16 relating to the reclassification of finance leases, and approximately Euro 3.5 million to the application of accounting standard IFRS 9 relating to the reclassification as financial payables of the exercise of the put & call option on 10% of the share capital of Infinica GmbH and 49% of the share capital of Doxee USA Inc.
Group Shareholders’ Equity amounted to Euro 13.5 million (Euro 8.8 million as of December 31, 2021), an increase of Euro 4.7 million on the amount as of December 31, 2021, of which Euro 3.1 million deriving from the subscription of 649,035 newly-issued Doxee shares at the price of Euro 3.993 per share, following the exercise of the 3,245,175 warrants during the third and last quarters of the year.
MAIN RESULTS OF DOXEE S.P.A. AS OF DECEMBER 31, 2022
Revenues came to Euro 23.4 million (Euro 20.3 million in 2021).
The Value of Production amounted to Euro 26.5 million (Euro 23.0 million in 2021).
EBITDA stood at Euro 4.6 million (Euro 5.3 million in 2021).
EBIT amounted to Euro 1.3 million (Euro 2.0 million in 2021).
EBT stood at Euro 0.9 million (Euro 1.7 million in 2021).
The Net Profit amounted to Euro 0.5 million (Euro 1.5 million in 2021).
Net Financial Indebtedness was Euro 11.8 million compared to Euro 2.4 million as of December 31, 2021.
Shareholders’ Equity amounted to Euro 16.1 million (Euro 11.9 million as of December 31, 2021).
PROPOSED ALLOCATION OF NET INCOME FOR THE YEAR
The Board of Directors resolved to propose to the General Meeting of Shareholders the following allocation of net income for the year, amounting to Euro 524,046
• Euro 26,202 to legal reserves;
• Euro 497,844 to the extraordinary reserve.
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Disclaimer
Doxee S.p.A. published this content on 30 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 March 2023 15:13:09 UTC.
