Preliminary Unaudited Results for the Full Year ended 31 December 2014April 30, 2015
Strong revenue growth; third consecutive year of positive free cash flow1, of €7.3 million
Globo plc (LSE-AIM: GBO), the international provider of Enterprise Mobility Management (EMM), mobile solutions and software as a service (SaaS), announces preliminary unaudited results for the year ended 31 December 2014.
- Revenues up 49% to €106.4 million (2013: €71.5 million), ahead of market expectations
- GO!Enterprise revenue up 94% to €57.9 million (2013: €29.9 million)
- CitronGO! and GO!Social revenue up 11% to €38.5 million (2013: €34.8 million)
- Revenues from North America increased by 334% to €15.5 million (2013: €3.6 million) representing the 15% of the total Group revenues
- EBITDA up 41% to €50.9 million (2013: €36.0 million), ahead of market expectations
- Profit Before Tax up 30% to €35.7 million (2013: €27.4 million), ahead of market expectations
- Earnings Per Share of €0.094 (2013: €0.074), ahead of market expectations
- Free Cash Flow1 of €7.3 million (2013: €5.2 million)
- Year-end cash position of €82.8 million (2013: €64.2 million) with Net Cash position (cash minus debt) of €40.4 million (2013: €42.8 million)
1 Free Cash Flow (FCF). Free cash flow is calculated by taking the net cash flow from operating and investing activities, adding back the cost of acquisitions.
Growth in Customer Base
- GO!Enterprise customer base grew to 834,000 business-to-employee device licenses (2013: 340,600) and 31.8 million business-to-consumer licenses (2013: 13.1 million)
- CitronGO! and GO!Social customer base increased to 3.50 million monthly active users (2013: 2.98 million
Acquisition and US Expansion
- Total revenues from North America increased by 334% to €15.5 million (2013: €3.6 million) representing the 15% of the total Group revenues
- Services division of Sourcebits Inc. (‘Sourcebits’) acquired in July 2014 for a cash consideration of US$12.2 million (€9.1 million). Sourcebits is now fully-integrated as part of the Group’s Mobility Business Solutions (MBS) division and contributed revenue of €2.1 million for the period since acquisition
- Notify Technology Inc., (Notify) acquired in October 2013, now fully-integrated within the Group’s US operations, contributed revenue of €3.0 million for the full year to 31 December 2014, resulting from growth in its Mobile Device Management (MDM) product and phasing-out of legacy offerings
- At the end of the period, 123 employees were located within the Group’s US operations, namely Palo Alto (headquarters), San Francisco, New York and Canfield, Ohio. Globo’s Founder and CEO, Costis Papadimitrakopoulos, relocated to Palo Alto mid-year
Distribution Channels and Customer Wins
- The Group significantly expanded its distribution and reseller partnerships, providing access to more than 50 countries
- A number of significant contract and customer wins during the period, including the New South Wales Health Administration in Australia, the Ministry of Public Order and Citizen Protection in Greece and the Milton Keynes Council in the UK
- New clients during 2014 include: Siemens, TUI, TNT, PeopleCert and Intracom Telecom
- Continued development of the GO!Enterprise offering, incorporating new features including Mobile Device Management and Cloud deployment
- Launch at 2014 Barcelona Mobile World Congress of GO!AppZone Mobile Application Development Platform (MADP) for cross-platform mobile apps build, test and deployment
- Launch of GO!AppZone cloud services including GO!AppZone Test and GO!AppZone Build for cloud-based creation and test of native cross-platform apps
- Launch of GO!Enterprise WorkSpace, an improved user experience including Secure Office Editor embedded as a free utility
- Integration of GO!Enterprise with Samsung KNOX™ for Expanded Security and Management of Android Devices, and Cisco’s ISE™ (Identity Services Engine)
- December 2014: participation in European universities and private sector research project to develop a Parkinson’s Disease treatment programme using mobile-health technology
- January 2015: GO!Enterprise EMM 50,000 licence renewal and incremental purchase order from a US Fortune 100 company, worth US$1.2 million (€1.0 million)
- Major contract wins with customers such as US ARMY, ING, EMC, INTEL, Musananda (UAE), Vodafone and Coca Cola
The strong momentum of 2014 has continued into the first quarter of 2015. The principal focus in 2015 remains expansion of the Group’s US revenues and market presence, through organic growth, the addition of key personnel and, where appropriate, selective earnings-accretive acquisitions.
Commenting on the results, Costis Papadimitrakopoulos, Globo CEO, said:
“2014 has been a year of considerable progress for the Group. We have produced a strong financial performance, with significant growth in revenue, earnings and free cash flow, all ahead of market expectations, and driven primarily by organic licence growth. We have established and expanded upon our presence in the US, one of our key growth markets. We have also continued to develop our product offering, in line with the rapid change in both customer needs and technology trends. In doing so, we have received important industry recognition from Ovum, Gartner and the IDC for our EMM solution and mobile application development platform. This market recognition is a huge credit to the hard work and dedication of our global team.
After a strong start to 2015, we are well positioned to continue on the trajectory of the previous year. We will look to grow our profile in the market and increase our market share in the provision of EMM and MADP solutions and services, empowering the Mobile Enterprise. With our robust balance sheet, expanded geographical footprint and culture of innovation, I am confident that 2015 will be another successful year for the Group.”
There will be an analyst presentation today at 10.30 BST at 55 Old Broad Street, London EC2M 1RX. The presentation will also be webcast live at http://www.globoplc.com and will also be accessible via a live conference call, dial-in No.: , conference ID: Globo.
For further information please contact:
Costis Papadimitrakopoulos, CEO
Dimitris Gryparis, Finance Director
Mike Jeremy, IRO
RBC Capital Markets
(Nominated Adviser & Broker)
Pierre Schreuder or Ema Jakasovic
Simon Bridges or Emma Gabriel
Chris Blundell or Charles Pemberton
Notes to Editors:
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.