Year end report and quarterly report October-December 2017
A summary of our year-end report and quarterly report October-December 2017. The complete report in Swedish is available here.
Full year 2017
A message from our CEO Stefan Larsson
Invoicing for the fiscal year increased by 171 per cent to 113 MSEK
During the fourth quarter, we saw the positive effects of our transaction with Autodesk that was completed at the beginning of the year. Invoicing more than tripled and the net turnover increased by no less than 177 per cent, amounting to 40 MSEK for the quarter. The net turnover for the full year increased by 148 per cent and amounted to 84 MSEK. We also reinforced our market position through an increased number of users and a strengthened global presence.
The strong growth reflects that we reached several important milestones in 2017. We furthermore established the BIMobject Cloud as the leading platform and supplier of BIM content. Our strengthened market position is confirmed by an explosive increase in professional users, downloads, and available objects as well as revenue and paying customers. 386,000 new professional users registered over the course of the year and approximately 11 million BIM objects were downloaded. This increase in users and downloads is of highest priority and it drives our ability to attract new brands and customers and generate revenue. Our customer base is made up of those who manufacture or sell the physical products. And if we, through our platform, can give them access to their customers through the design programmes, their chances of delivering the end product increase as well. The number of users on our platform grew by 95,000 in the USA alone.
Increased global market presence
The intense efforts to increase our global market presence are carried out along several parallel lines and have accelerated during the quarter. Organic growth has been achieved through an increased presence at important market events, in social media, and through the hiring of 15 new sales staff with the task of developing our customer base in existing markets. The organic growth has also benefited from strategic partnerships centered around both market establishment and product innovation. Together, our strategic market efforts and investments in new innovations and future solutions have resulted in higher costs for the full year. The development is in line with our plans and there is some improvement in earnings in the fourth quarter.
Japanese joint venture opens up the world’s third largest market
Establishment in the strategically significant Japanese market was made possible when we teamed up with Japanese supplier of building and interior products Nohara to start a company together. Nohara have been operating for more than 400 years, which gives us a unique opportunity quickly to build a user base and market presence in the third largest market in the world, with a construction industry that faces large investments and a digitalisation.
Innovative solutions make us relevant
BIMobject is at the forefront of creating digital solutions and content adapted for BIM. Over the year, we launched several innovative solutions that will create value long-term, such as BIMobject Hercules and BIMsupply. Hercules lets customers create their own digital BIM cloud with an approved assortment. The British Ministry of Justice as a building owner using the solution makes concrete the benefits of a cloud-based BIM object platform that is tailored to the customer. Each project leader within the organisation that is responsible for building, renovating, or maintaining a building is referred to products in their Hercules-portal. The advantages are immense! Thanks to Hercules, building owners can ensure that the entire stock maintains the right safety classification over time, that they have control of procurement needs, as well as their ability to streamline and coordinate their purchases. They furthermore increase the knowledge of future maintenance needs as well as the environmental impact and maintenance costs of a building for many years to come.
In addition to the product launches during the year, we developed and launched a new API, released the source code for app development, and worked on interesting concepts in AR (augmented reality) and VR (virtual reality). The latter are important for the long-term growth of BIMobject, and to realising the BIMobject platform as the Single Source of Truth in BIM.
Ambitious targets for 2018
The digitalisation wave hits the construction industry and the demand keeps growing steadily. Supported by a growing market, our ambition is to reach one million users and an additional 20 million downloads in 2018. We furthermore aim to become 10 times bigger than our biggest competitor. These targets are ambitious and not without challenges, but 2017 has formed a solid base for strong continued growth in 2018. For 2018, we will drive sales in the markets where we are established. Our ambition is continued organic two-figure growth in invoicing and reduced negative cash flow. We also aim towards partnerships and/or acquisitions to enter new markets quickly.