Digital Workforce Services Plc’s Financial Statement Bulletin 2022
Digital Workforce Services Plc’s Financial Statement Bulletin, January 1 – December 31, 2022: Growth continues, adjusted EBITDA for the second half of the year turned positive
28.2.2023 15:00:00 EET | Digital Workforce Services Oyj | Company Announcement
Digital Workforce Services Plc
Company announcement 28 February 2023 at 15.00 EET
Financial Statement Bulletin, January 1 – December 31, 2022 (unaudited)
Unless otherwise stated, the comparison figures provided in parentheses refer to the corresponding period of the previous year.
GROWTH CONTINUES, ADJUSTED EBITDA FOR THE SECOND HALF OF THE YEAR TURNED POSITIVE
Digital Workforce Service’s revenue for the second half of the year from 1 July to 31 December 2022 was EUR 13.5 (11.3) million. Revenue increased by EUR 2.2 million or 19,7% compared to last year. EBITDA was EUR -0.2 (-0.7) million and adjusted EBITDA was EUR 0.5 (-0.3) million. For the fourth quarter 1 October to 31 December 2022, revenue was EUR 7.2 (6.1) million. Revenue increased by EUR 1.1 million or 18,8% compared to last year. EBITDA was EUR 0.8 (-0.6) million and adjusted EBITDA EUR 1.0 (-0.2) million.
Digital Workforce Service’s revenue for the financial period 1 January to 31 December 2022 was EUR 25.5 (22.4) million, an increase of EUR 3.1 million or 13,9% compared to last year. EBITDA was EUR -1.8 (-1.0) million and adjusted EBITDA EUR -0.9 (-0.6) million.
At the end of the reporting period, cash and bank receivables and other liquid assets were at EUR 18.1 million.
The number of employees at the end of the reporting period was 190 (181) and the average number of employees was 193 (191).
July-December 2022:
- The revenue was EUR 13.5 (11.3) million, which was an increase of 19,7%.
- EBITDA was EUR -0.2 (-0.7) million and adjusted EBITDA EUR 0.5 (-0.3) million.
- Operating profit was EUR -0.9 (-0.8) million.
- Revenue from Continuous Services was to EUR 7.8 (6.1) million, which was an increase of 29,2%. The percentage of revenue rose to 58,1% (53,8%).
- Revenue from Professional Services was EUR 5.7 (5.2) million, which was an increase of 8,7%. The percentage of revenue was 41,9% (46,2%).
- Adjusted EBITDA for the fourth quarter 13,9% (-3,3%) of revenue.
January-December 2022:
- The revenue was EUR 25.5 (22.4) million, which was an increase of 13,9%.
- EBITDA was EUR -1.8 (-1.0) million and adjusted EBITDA was EUR -0.9 (-0.6) million.
- Operating profit was EUR -2.6 (-1.2) million.
- Revenue from Continuous Services was EUR 15.0 (11.7) million, which was an increase of 28,6%. The percentage of revenue rose to 58,9% (52,1%).
- Revenue from Professional Services was EUR 10.5 (10.7) million, which was a decrease of 2,1%. The percentage of revenue 41,1% (47,9%).
- Earnings per share (EPS) amounted to EUR -0.27 (-0.62).
- The company updated its strategy – a new Digital Workforce Outsmart customer business process automation frame and an associated technology solution suite were introduced to accelerate business growth.
- The company announced its partnering with Flowable to extend its Outsmart solution suite.
- Business Finland awarded a grant of EUR 1.37 million for research and development to further develop Outsmart Platform for the period March 4, 2022 – February 28, 2023.
- Several deals with organizations in national health care (NHS) in the UK.
- New Roboshore managed service deals across various industries in the United States.
- On July 7, 2022 Digital Workforce Services received an order for Professional Services of approximately EUR 1.5 million for year 2022 from a major utility company in the United States.
- On July 17, 2022 Digital Workforce Services signed an agreement to acquire Eclair Group Limited (Ireland).
- On December 19, 2022 it was announced that CEO and founding shareholder Mika Vainio-Mattila will leave his position.
- On December 20, 2022 it was announced that Mr. Jussi Vasama, MSc (Tech) was appointed as new CEO of the group. He will start in his new position at Digital Workforce Services latest on 19 April 2023.
Outlook for 2023
Digital Workforce’s full-year 2023 revenue is expected to be higher than in 2022 and profitability is expected to be positive on an adjusted EBITDA basis.
Key figures
| Capital expenditure | ||||||
| EUR 1,000 | 7-12/2022 | 7-12/2021 | Change % | 1-12/2022 | 1-12/2021 | Change % |
| Revenue | 13 503 | 11 279 | 19,71 % | 25 470 | 22 362 | 13,90 % |
| Revenue from Continuous Services | 7 846 | 6 073 | 29,18 % | 14 992 | 11 659 | 28,59 % |
| Revenue from Professional Services | 5 657 | 5 206 | 8,67 % | 10 478 | 10 703 | -2,10 % |
| Sales margin | 5 071 | 3 930 | 29,04 % | 9 294 | 7 926 | 17,27 % |
| % of Revenue | 37,6 % | 34,8 % | 36,5 % | 35,4 % | ||
| EBITDA | -179 | -684 | -73,88 % | -1 785 | -956 | 86,70 % |
| % of Revenue | -1,3 % | -6,1 % | -7,0 % | -4,3 % | ||
| Adjusted EBITDA* | 468 | -313 | -249,88 % | -874 | -585 | 49,37 % |
| % of Revenue | 3,5 % | -2,8 % | -3,4 % | -2,6 % | ||
| EBIT | -886 | -809 | 9,49 % | -2 608 | -1 219 | 113,91 % |
| % of Revenue | -6,6 % | -7,2 % | -10,2 % | -5,5 % | ||
| Net income | -1 126 | -3 013 | -62,63 % | -3 009 | -3 578 | -15,89 % |
| Earnings per share, EUR | -0,10 | -0,52 | -0,27 | -0,62 | ||
| Capital expenditure | -1 162 | 0 | -1 166 | -37 | ||
| Operating cash flow | 1 482 | -568 | -2 043 | -1 310 | ||
| Net debt | -15 624 | -18 283 | -15 624 | -18 283 | ||
| Gearing ratio % | -101,20 % | -99,83 % | -101,20 % | -99,83 % | ||
| Equity ratio % | 55,30 % | 69,00 % | 55,30 % | 69,00 % | ||
| Number of employees at the end of reporting period | 190 | 181 | 190 | 181 | ||
| Average number of employees | 200 | 191 | 193 | 191 | ||
| * The EBITDA adjustment for 1-12/2022 is formed by costs related to IT system projects, restructuring and write-offs. In 2021, the adjustment was formed by costs related to listing.
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CEO Heikki Länsisyrjä
“Our revenue grew by 20% in the second half of the year. We achieved the two best quarters in a row in our company’s history. In line with our strategy, we grew in the US and UK markets. Much of that happened in the healthcare segment, where we see globally significant growth potential for the future. We grew particularly in our Continuous Services business. In the fourth quarter, we achieved the best EBITDA in the company’s history, the adjusted EBITDA landing at 14%. The efficiency measures taken in the beginning of the second half of the year significantly improved our profitability.
Our new strategic Outsmart business, launched in spring 2022, and offering a holistic approach to developing and automating customers’ core business processes, has grown significantly. We have built a set of customer business process improvement services around Outsmart, ranging from a pre-implementation study, a detailed analysis of business and business process development opportunities to, automation solution implementation, maintenance service and business improvement results validation. The solution implementation is built on a cloud-based state-of-the-art technology solution suite. We have trained our staff and made further key recruitments to accelerate the implementation of this strategy.
Initial projects and numerous business and business process reviews in real customer environments have projected a very large potential for improvements and savings. For example, in healthcare studies alone, we have shown that through the Outsmart approach cost savings of up to tens of millions of euros can be reached.
The market for end-to-end business process development and automation is growing strongly and remains the fastest growing segment of the IT industry. The market has still a lot of untapped potential. Our traditional robotics business is, alongside with other parts of the Outsmart service portfolio, an important enabler of this.
We expect the company’s revenue growth to continue through 2023 and profitability to be positive on an adjusted EBITDA basis. By the end of 2025, the company is targeting revenues of 50 million euros and an adjusted EBITDA of more than 10%.
Our cash position will remain strong. The cash generated by our IPO and our strategy of profitable growth will support the company’s international growth, both organically and, if necessary, through acquisitions.”
This is a summary of Digital Workforce Services Plc’s Financial Statement Bulletin 2022. The complete report is attached to this release and available at: https://digitalworkforce.com/investors/releases/
Helsinki February 28, 2023
Digital Workforce Services Plc
Board of Directors
For further information, please contact:
Heikki Länsisyrjä, Tel. +358 50 558 7801
Certified advisor
Danske Bank, Tel. +358 40 841 3052
About Digital Workforce Services Oyj
About Digital Workforce Services Plc
Digital Workforce Services Plc is a leading business process automation services and technology solution provider globally. Digital Workforce Outsmart services and technology solution suite allow organizations to save costs, accelerate digitalization, increase revenue, improve customer experience and gain competitive advantage. Globally, over 200 large customers use Digital Workforce’s services and technologies to transform their businesses with automation. Founded in 2015, Digital Workforce currently employs over 200 business automation specialists in the US, the UK, Ireland, Poland, Germany, Finland, Sweden, Norway, and Denmark. Digital Workforce is publicly listed in Nasdaq First North Growth Market Finland.
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