Solid software revenue growth in Q2
Q2 Highlights
- ARR increased to MSEK 46.1 (42.9), an annual growth of 8%.
- Net revenue amounted to MSEK 21.1 (15.1), software revenues increased to MSEK 14.3 (10.5).
- EBIT amounted to MSEK -12.8 (-17.5), including development costs of MSEK 12.4 (14.2).
- Net income amounted to MSEK -12.4 (-17.5).
- Earnings per share amounted to
SEK -1.13 (-1.59) before dilution.
Comments from the CEO
Solid software revenue growth in Q2
We are pleased to report software revenue growth amounting to 36% in Q2 2023 compared to Q2 2022, while Annual Recurring Revenue growth in the same period amounted to 8%. A significant paid-up upsell win with a major automotive account in
Overall, we saw healthy pipeline activity in our target regions of
Customer wins and testimonials
Notable new and upsell customers in the second quarter include:
- European provider of indoor climate systems
- US innovator in carbon-free energy systems for sustainable maritime transportation
- Japanese factory logistics and automation system provider
- European automotive thermal systems consultancy
- Japanese provider of store refrigeration products
- European provider of sustainable waste to energy solutions
- US water heater manufacturer
Another representative marketing example published during Q2 is the customer success story from Aircela, a US innovator in sustainable liquid fuel production based on Direct Air Capture technology. By capturing the chemistry and physics of the system using Modelon Impact, Aircela is developing and testing new concepts without building them, to understand system performance and save time.
Advancing transition to managed cloud
As previously communicated, we are as a major step in our SaaS journey shifting the main delivery model of our flagship product Modelon Impact from on-premise installations to a more streamlined and scalable, fully-managed cloud service. This transition is a planned strategic change involving focused efforts from product development and sales and will continue during the second half of 2023 and into 2024. We are pleased that all new Modelon Impact customers in Q2 on-boarded with the managed service, which illustrates our progress. The ongoing transition is temporarily increasing the customer interactions needed to close deals, which has extended the sales cycle and is slowing ARR growth during this period. When completed, we expect the managed service to give shorter sales cycles and enable faster growth through the streamlined delivery and user experience on the cloud.
New channel partners in
During the quarter we announced two new non-exclusive reseller partners for Modelon Impact in
Modelon Impact 2023.2 released on the cloud
Modelon Impact 2023.2 was released to cloud users during June and includes substantial improvements in the cloud back-end for higher performance and enabling future capabilities, as well as significant new features related to parallel scaling, workspace sharing, and connectivity. Industry vertical improvements include new and updated models for hydrogen systems, fuel cells, air conditioning cycles, refrigerant blends, microgrids, thermal power plants and carbon capture – all strengthening our capabilities in high-demand industry applications.
The activities and achievements in Q2 continue to build a firm ground for scalable global growth.
Magnus Gäfvert, CEO
Investor presentation
The complete Q2 interim report is attached to this press release and is also made available on the company webpage: http://www.modelon.com/investor-relations/#FinancialReports.
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