Q3 Trading UpdateNovember 20, 2014
20 November 2014
(“Globo” or the “Group”)
Trading Update for nine months ended 30 September 2014
Globo Plc (LSE-AIM: GBO), the international provider of Enterprise Mobility Management (EMM) solutions and software as a service (SaaS), is pleased to announce its trading update for the nine months ended 30 September 2014.
· Revenues for the first 9 months of the year grew by 46% to €73.2 million (first 9 months 2013: €50.0 million):
o GO!Enterprise revenues grew by 89% to €35.0 million (first 9 months 2013: €18.5 million), including a maiden contribution from Sourcebits of €1.2 million;
o CitronGO! Revenues grew by 13% to €29.8 (first 9 months 2013: €26.4 million).
· Gross profit margin improved to 62% (H1 2014: 58%) reflecting the positive impact of direct sales compared to indirect channels.
· The Group continued to generate free cash flow1 during the third quarter. The net cash position
at 30 September 2014 was €36.3 million (30 June 2014: €46.0m) after payment of US$12.0 million and associated costs for the acquisition of Sourcebits in July 2014, and other investment and setup costs associated with US expansion.
· We expect positive free cash flow generation to continue during the last quarter of 2014 and we remain confident that our year-end results will meet market expectations.
Q3 Operational Update
· Following the relocation of Globo’s CEO to Palo Alto, the Group continued to expand its operations in the US in Q3, strengthening both its sales team and marketing presence in order to continue to grow its customer base.
· Demand for our GO!Enterprise EMM and Mobile Application Development Platform (MADP) solutions in combination with our MBS (Mobility Business Solutions) expert consulting services has remained strong, affirming our belief in the “Mobile First Enterprise” business model.
· The recent Sourcebits acquisition is being integrated within the MBS consulting arm. Expansion of Sourcebits sales and technical teams has led to several new customer opportunities based on the combination of its UI / UX (User Interface / User Experience) design offering and Globo’s MADP platform.
· As announced at half year results, in Q3 2014 the Group won a €7.5 million integrated product project with the Greek Ministry of Public Order and Citizen Protection, and also contracts with Intel, McKinsey, SAP, EMC and ING.
· Following on from the Group’s inclusion in Gartner’s EMM Magic Quadrant, Globo has been included in Ovum’s Decision Matrix report 2014-15, with recognition as a market challenger amongst the top 11 EMM vendors globally.
· The Group has continued to invest in further developing the GO!Enterprise EMM and GO!AppZone MADP. Globo recently received FIPS 140-2 encryption validation from the United States National Institute of Standards and Technology (NIST) Cryptographic Module Validation Program (CMVP).
Globo remains committed to becoming a leading Enterprise Mobility provider. To achieve this, the Group is focused on:
· Investing in innovation and research in product development;
· Expanding our MBS arm to drive enhanced customer engagement, win further contracts and establish recurring licence revenues;
· Seeking suitable acquisitions in order to access new markets, new technology and additional expertise.
Costis Papadimitrakopoulos, CEO commented:
“We are happy to report that, seventeen years after the Group’s foundation, our business continues to innovate and grow on all fronts. After my move to California, the company has established a more US-driven development path. Our reputation and position in the market continues to go from strength to strength and I expect this to be reflected in the future performance of the Group. We are confident that the successes of the first nine months of the year will continue through the remainder of 2014 and beyond.”
Costis Papadimitrakopoulos, CEO
Dimitris Gryparis, Finance Director
Mike Jeremy, IRO
RBC Capital Markets
(Nominated Adviser & Broker)
Simon Bridges or Emma Gabriel
Chris Blundell or Charles Pemberton
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 recognised in the 2014 Gartner Enterprise Mobility Management Magic Quadrant report and in Ovum’s 2014-15 Decision Matrix for EMM Solutions.
For more information please visit www.globoplc.com.
1 We calculate FCF as net cash from operating activities minus all expenditures required to maintain or expand our organic business, including
purchases of intangible assets and property, plant, and equipment; it does not include purchases made in connection with business combinations or