FOR IMMEDIATE RELEASE 2 February 2015
("Globo" or the "Group")
Full Year Trading Update
Globo plc (LSE-AIM: GBO), the international provider of Enterprise Mobility Management (EMM), mobile solutions and software as a service (SaaS), announces its trading update for the full year ended 31 December 2014.
The Board is pleased to report that Globo has achieved strong organic growth and increased market penetration in all lines of business.
· Revenues for the full year from continuing operations grew by 48% to €106 million (2013: €71.5 million), ahead of market expectations.
· GO!Enterprise generated sales of close to €57 million, a year-on-year increase of
approximately 90% (2013: €29.9 million).
· CitronGO! and GO!Social (the Group's consumer mobile portfolio) achieved revenues of
€38 million for the year, up almost 10% on the previous year (2013: €34.8 million).
· The Group generated positive free cash flow for the third consecutive year.
· Globo's year-end net cash position was €40.3 million (2013: €42.0 million) after payment of
US$12.0 million and associated costs for the acquisition of Sourcebits Inc., in July 2014, and other
investment and setup costs associated with US expansion
· Profits are anticipated to be broadly in line with market expectations.
Outlook for 2015
• Globo'sstrategic focus continues to befurther expansion of itsUS presence and revenues.
• Globo has a differentiated approach to serving mobile enterpriseneeds through the combination of Enterprise Mobility Management (mainly covering security and supportof mobile workers), a Mobile Application Development Platform (covering the needsof cross platform Mobile Apps development and deployment),and Mobility Business Solutions (covering all the needs of expert consulting and services to help a business develop a mobile roadmap).
• The marketopportunity remains sizeable. IDC forecasts the EMM market to reach $2.2 billion by 2017, from $798 million in 2012, a 22% CAGR 2012-2017, and the MADP market to reach $4.8 billion by 2017, from $938.6 million in 2012, a 39% CAGR 2012-2017.
• Globo willcontinue to considerselective acquisitions that will further strengthen itsability to
execute and enrich its product portfolio with additional functionalities.
Overall, we anticipate significant investment in sales and marketing as we continue to build our presence in the US, to allow us to grow our customer base and develop further recognition of our brand across the market. In addition to our already successful strategy of distribution via partners such as software vendors, integrators, consultants and mobile handset manufacturers, we continue to focus on direct sales to the end-user in 2015.
Trading in 2015 has started strongly and we anticipate that as IT budgets from customers start to be deployed and BYOD (Bring Your Own Device) and demand for mobile apps increases, Globo will have the opportunity to deliver another year of strong growth and increased market penetration.
Globo's Chief Executive Officer, Costis Papadimitrakopoulos, commented:
"During the past 3 years, Globo has transformed itself from a European technology company into a leader in one of the most promising technology markets - mobile enterprise solutions, enterprise mobility management and applications. Today our Enterprise Mobile sales represent the dominant component of our business and we see a tremendous future in further building our presence in advanced markets such as the US and Western Europe. Our execution capacity and underlying cost efficiencies will help the Group to maintain its track record of profitable growth. We remain confident about our future prospects and believe that 2015 will be another successful year."
2014 was an important year for Globo. The strong product positioning and development of the business through partnerships, direct sales and the acquisition of Sourcebits Inc., have helped the Group gain significant recognition and momentum among its peers. The positive financial and operating performance is a result of continued strong demand for Globo's mobile products, driven in particular by the growing BYOD business trend and increasing demand for mobile applications by corporations at all levels.
Notable operating developments during the year include:
Growth in Customer Base
• GO!Enterprise customer base grew to 834K business-to-employee device licences(31 December 2013: 341K) and 31.8 million business-to-consumer licences(31 December 2013: 13.1 million).
• CitronGO! and GO!Social customer base increased to 3.5 million monthly active users (31 December 2013: 3.0 million).
Organic growth compared to acquisition-driven growth
• Globo's growth for 2014 was mainly driven by successful execution of its underlying operations.
• Notify Technology Inc. contributed €3.0 million of revenue (8.7% of total growth) for the fullyear after the expected phasing out of its legacy products, namely Notify Sync and Notify Link. Notify's personnel have been fully integrated intoGlobo and Notify's technology now forms part of the enhanced portfolio of GO!Enterprise products.
• Sourcebits Inc. contributed €2.1 million of revenue (6.1% of total growth) since August 2014. Sourcebits' personnel are now fully integrated into Globo's MBS division. The repositioning of strategy and focus on enterprise solutions has resulted in a significantly stronger pipeline of business compared to the time of acquisition.
• US revenues increased significantly during 2014 as a result of the ongoing focus on expanding our presence and execution capacity in North America.
• The year saw continued expansion and consolidation of our US-based operations with the initialacquisition of Notify Technology Inc., (October 2013) andthe addition of the services division of Sourcebits Inc., (June 2014).
• As of 31 December 2014, approximately 25%of the Group's employees were based in four offices in the US - Palo Alto, San Francisco, New York and Canfield,Ohio. The Group is currentlydeveloping an additional centre in Pittsburgh, Pennsylvania.
• Globo's Founder and CEO, Costis Papadimitrakopoulos, relocated to the headquarters of Globo's US operations in Palo Alto, California, halfway through the year.
Contract and Customer Wins
• Contract win in Australia with the New South Wales Health Administration delivered via MobiliseIT (Globo's partner) and Optus (Australian No. 2 Mobile Network Operator).This has yielded an initial sale of 6,000 GO!Enterprise licences.
• Contract from the Ministry of Public Order and Citizen Protection in Greece, awarded in partnership with Globo Technologies S.A., to supply secure mobile access to Government systems and information road traffic safety and law enforcement control.
• Contract to supply mobile technology and services to Milton Keynes Council (UK) as part of a three-year project to enhance productivity and security for Council employees carrying mobile devices.
• New clients acquired, notably Siemens, TUI, TNT, PeopleCert and Intracom Telecom.
Expanded Sales Channels
• Expansion of Globo's distribution agreement for GO!Enterprise products with Ingram Micro Mobility to include large-scale enterprises and solutions for the SMEmarket in the US and Canada.
• Strategic partnership, via Computerlinks, with Bechtle Direct UK Ltd., for distribution of Globo's Enterprise Mobility Management solutions.
• Distribution agreement with Qast Software Group for GO!Enterprise products in the Asian market, namely in Taiwan, China, Hong Kong and Singapore.
• Distribution agreement with Portland Europe for Globo's EMM and MADP (Mobile Application Development Platform) solutions in the Benelux region.
• Continuedto invest and develop the GO!Enterprise offering by incorporating new features that include Mobile Device Management and Cloud deployment.
• Launch at Barcelona Mobile World Congress of GO!AppZone, a comprehensive MADP solutionfor building cross-platform mobile apps, with associated test and deployment.
• Launch of GO!Enterprise WorkSpace, offering an improved user experience with Secure Office Editor embedded as a free utility.
• Launch of GO!AppZone cloud services including GO!AppZone Test and GO!AppZone Build to facilitate rapid testingand creation of native cross platform apps from the cloud without the need for additional software or developer skills.
• Integration for GO!Enterprise with Samsung KNOX™ for Expanded Security and Management of Android Devices.
• Integration for GO!Enterprise With Cisco ISE (Identity Services Engine) to provide an advanced layer of security, control and compliance to enterprise IT.
Disposal of stake in Globo Technologies S.A.
• As expected, the Group received payment of €1.2million from GMBO Holdings Ltd., comprising €1 millionof principal and €0.2million in interest due in respect of the Group's divestment of 51% of Globo Technologies S.A., the e-business and software service, which was completed on 3 December 2012. This instalment was received slightly earlier than expected and maintains the schedule of paymentswhich is due for completion in December 2016.
• Globo Technologies S.A., reports a strong pipeline of new projects.
Costis Papadimitrakopoulos, CEO
Dimitris Gryparis, Finance Director
Mike Jeremy, IRO
RBC Capital Markets
(Nominated Adviser & Broker)
Simon Bridges or Emma Gabriel
Chris Blundell or Katarina Sallerfors
About Globo plc
Globo Plc is a global provider of complete enterprise mobility solutions and SaaS. Our GO!Enterprise (EMM) and GO!AppZone (MADP) offerings help businesses expand their engagement with employees and customers through the mobile channel via a secure and extensible environment that runs on all smart devices. The Group operates internationally through subsidiaries and offices in U.S., U.K., Europe, Middle East and South East Asia. Globo was included in the 2014 Gartner Enterprise Mobility Management Magic Quadrant report, in Ovum's 2014-15 Decision Matrix for EMM Solutions and in IDC's January 2015 report on Mobile Enterprise Application Development Platforms.
For more information visit www.globoplc.com.