Q1 2022 revenue up 2.5% on a reported basis, strong underlying
trends
Q1 2022 revenue up 2.5% on
a reported basis, strong
underlying trends
Solid
developments across all solutions
despite a high
comparison basis
-
Total revenue of
€253 million
in
Q1 2022,
up 2.5% on a reported basis and
down
-0.6%1
organically vs. Q1 2021, in line with
Quadient’s expectations.
-
Intelligent Communication Automation revenue was
up 10.7% organically, driven by a 15.7% organic growth in
subscription-related revenue. Growth in Annual Recurring Revenue
(€158 million2,3 at end of Q1 2022) was supported by further
customer base expansion, reaching 12,000+ customers2 at the end of
the quarter, and positive usage evolution.
-
Solid performance from Mail-Related Solutions with
a contained revenue decline of -1.7% organically despite a high
comparison basis in Q1 2021 (6.3% organic growth Q1 2021 vs. Q1
2020). Resilience in revenue, driven in part by a positive
contribution from North America, confirms the success of Quadient’s
strategic choices to focus on innovation and customers.
-
Parcel Locker Solutions installed base grew by a
further c.550 units, reaching 16,300 lockers at the end of Q1 2022.
While subscription-related revenue progressed further with an
11.1% organic growth, hardware sales suffered from the very
high comparison basis vs. Q1 2021 mainly due to the end of the
roll-out of a large retail customer contract in the United
States. As a consequence, Parcel Locker Solutions revenue declined
by -17.9% on an organic basis, to be compared with the 67.9%
organic growth recorded in Q1 2021 vs. Q1 2020.
Dynamic fundamentals and
strong pipeline
– FY 2022
guidance reiterated
-
With a solid Q1 performance in line with its expectations, a robust
recurring business model supported by dynamic fundamentals and a
strong pipeline across all solutions, Quadient confirms its FY 2022
guidance as it expects organic growth to accelerate throughout the
rest of the year.
-
FY 2022
organic revenue growth confirmed
above 2%4
compared to FY
2021.
-
Current EBIT5
organic growth confirmed
at low to mid-single digit compared to
FY 2021.
Paris, 7 June 2022,
Quadient (Euronext Paris: QDT),
a leader in business solutions for meaningful customer connections
through digital and physical channels, today announces its
first-quarter 2022 consolidated sales (period ended on 30 April
2022).
Geoffrey Godet, Chief Executive Officer of
Quadient, stated: “Q1 was very much in line with our expectations
thanks to a strong underlying performance in each of our three
solutions, despite a high year-over-year comparison basis. Looking
ahead, our solid market positions are setting us on a favorable
path across our solutions. In that respect, we are very proud of
the recent industry recognition placing our cloud platform as a
market leader in the IDC MarketScape only three years after having
launched our cloud strategy. Our SaaS offers show increasing
penetration in their main markets while we also continue the
deployment of our newly acquired fintech companies into new
European geographies. Our large pipeline of projects for Parcel
Lockers continues to show good momentum, while our Mail-Related
Solutions are performing well, thanks in particular to the success
of our recently launched iX series. Based on these solid
fundamentals and thanks to our strongly recurrent and largely
inflation-indexed business model, we are confident that organic
growth will accelerate throughout the rest of the year and
therefore confirm our guidance for the full year.”
FIRST-QUARTER
2022 SALES
Consolidated
sales amounted to €253 million in the first quarter
of 2022, a 2.5% year-over-year increase and a -0.6% decline on an
organic basis. Foreign exchange had a significant positive impact
in Q1 of c.€11 million, mostly U.S. dollar driven, while change of
scope was a net negative impact of -€3.7 million coming from the
combination of the sale of packaging solution business at the end
of H1 2021 and from the acquisition of Beanworks in March 2021.
Change in
Q1 2022
sales
In million euros |
Q1 2022 |
Q1 2021 |
Change |
Change at constant rates |
Organic change |
Major Operations |
236 |
226 |
+5.1% |
-0.0% |
-0.8% |
Intelligent Communication Automation |
52 |
44 |
+4.4% |
+7.8% |
+10.7% |
Mail-Related Solutions |
165 |
159 |
+0.9% |
+6.3% |
-1.7% |
Parcel Locker Solutions |
19 |
22 |
-14.6% |
-17.9% |
-17.9% |
Additional Operations |
16 |
20 |
-24.3% |
-24.3% |
+1.8% |
Total Sales |
253 |
246 |
+2.5% |
-2.1% |
-0.6% |
|
|
|
|
|
|
In million euros |
Q1 2022 |
Q1 2021 |
Change |
Change at constant rates |
Organic change |
Major Operations |
236 |
226 |
+5.1% |
-0.0% |
-0.8% |
North America |
135 |
123 |
+10.0% |
+1.5% |
+0.0% |
Main European countries(a) |
89 |
91 |
-2.4% |
-3.4% |
-3.4% |
International |
13 |
12 |
+11.4% |
+10.1% |
+10.1% |
Additional Operations |
16 |
20 |
-24.3% |
-24.3% |
+1.8% |
Total Sales |
253 |
246 |
+2.5% |
-2.1% |
-0.6% |
(a) Austria, Benelux, France, Germany, Ireland,
Italy, Switzerland, United Kingdom
Major Operations
Major Operations recorded
revenue of €236 million (94% of total sales) in the first
quarter of 2022, up by 5.1% year-over-year, benefiting from a
favorable currency impact. On an organic basis, revenue was down by
-0.8% vs. Q1 2021, impacted by the high comparison bases for
Mail-Related Solutions and Parcel Locker Solutions, while
Intelligent Communication Automation posted a double-digit organic
growth.
Q1 2022 sales in North America
(57% of Major Operations sales) was flat vs. Q1 2021 on an organic
basis. Quadient benefited from a double-digit contribution from
Intelligent Communication Automation and a strong performance from
Mail-Related Solutions. Parcel Locker Solutions revenue, however,
suffered from the high comparison basis related to the end of the
roll-out of a large retail customer contract in Q1 last year.
Main European countries
benefited from the deployment of recently gained Parcel Locker
Solutions’ contracts with double digit organic growth for the
Solution, as well as Intelligent Communication Automation's recent
launch of it Accounts Payable Automation platform. This positive
performance for European Operations was offset by a revenue decline
in Mail-Related Solutions, particularly in France.
The International segment
posted a double-digit organic increase in revenue in Q1 2022
(+10.1%) compared to Q1 2021, driven by the positive contribution
from both Intelligent Communication Automation and Parcel Locker
Solutions.
Intelligent Communication
AutomationIntelligent Communication
Automation reported sales of €52 million in the first
quarter of 2022, up by 10.7% organically compared to the first
quarter of 2021.
Subscription-related revenue (73% of Intelligent
Communication Automation in Q1 2022) recorded a strong double-digit
organic growth of 15.7% with all client types posting double digit
growth, including a c.50% growth in subscription-related revenue
growth from ICA’s financial automation solutions (AR/AP).
Despite the continuous shift in business model
from license to SaaS, license sales reported a 6.4% organic revenue
increase in Q1 2022, compared to a particularly low level in Q1
2021. The -3.7% organic decline in professional services revenue
was driven by product mix evolution and fewer large contract
implementations in Europe vs. Q1 last year.
Annual Recurring Revenue progressed
significantly to €158 million2 at the end of Q1 2022 vs. €145
million3 at the end of FY 2021 supported by further customer
gains. Customer number3 surpassed 12,000 at the end of Q1 2022
fueled by a c.450 net increase in the period reflecting the
success of our cross-selling and up-selling strategy as well as the
promising deployment of recently acquired Account Payable
Automation platform Beanworks in France and the UK.
Post closing of the quarter and only three years
after announcing our cloud strategy, Quadient was named a “Leader”
in the 2022 IDC MarketScape vendor assessment for Cloud Customer
Communications Management (CCM), highlighting the strong
positioning of Quadient’s cloud platform offer against competition.
Such a selective industry recognition further demonstrates the
success of Quadient’s SaaS strategy and the rapid and successful
development of its cloud offering. Amongst other things, the IDC
MarketScape listed customer experience strategy, performance and
scale, and implementation experience as strengths of Quadient.
Mail-Related Solutions
Mail-Related Solutions sales stood at
€165 million in the first quarter of 2022, down only -1.7%
organically compared to the first quarter of 2021 despite a strong
comparison base in Q1 2021, which was up 6.3% vs. Q1 2020 on an
organic basis.
Subscription-related revenue (73% of
Mail-Related Solutions sales in Q1 2022), was down -1.7%
organically, highlighting once again the resilience of the business
and of its installed base.
Hardware sales also continue to show resilience
with a contained -1.6% organic decline, a solid performance which
came on the back of a strong Q1 2021 (31.9% organic growth vs Q1
2020 thanks to a post-COVID rebound). This is proving the
robustness of Quadient’s strategic choices and the success of the
placements of the iX product range. The share of upgraded installed
base continues to progress at a steady pace, reaching 13.8% at the
end of Q1 2022 vs. 11.7% at the end of the FY 2021.
Sales experienced positive organic growth in
North America, while the Main European countries posted an organic
decline with France being impacted by the presidential election.
However, both regions outperformed their respective markets.
Parcel Locker
SolutionsParcel Locker Solutions reported
sales of €19 million down -17.9% organically against the high
Q1 2021 comparison basis at €22 million, which was up 67.9%
organically compared to the first quarter of 2020 due to the end of
the deployment of the large retail customer’s contract in the
United States. The impact from this very high comparison basis is
reflected in the hardware sales performance (-47.7% organic decline
vs. Q1 2021).
In contrast, subscription-related revenue (67%
of Parcel Locker Solutions sales in Q1 2022), posted a double-digit
organic growth (+11.1%) driven by the increase in the installed
base (16,300 lockers at the end of Q1 2022, up c.550 units from the
end of 2021) and proving the attractiveness of the offering across
the four main verticals (property management, carriers, retailers,
universities & corporates).
Of note, the high double-digit organic growth in
revenue in France and the UK, thanks to the deployment of recently
signed contracts with large retailers.
Overall, the underlying trends in Parcel Locker
Solutions remain sound with a significant pipeline of potential
projects ahead.
Additional Operations
Additional Operations recorded
revenue of €16 million (6% of total sales) in the first
quarter of 2022, up 1.8% on an organic basis compared to the first
quarter of 2021. On a reported basis and due to change in scope,
Additional Operations posted a -24.3% decline reflecting the
disposal of the Automated Packaging Solution business at the end of
H1 2021.
ESG: SCOPE 1 &
2 GHG EMISSION REDUCTION TARGETS
RAISED, IN LINE WITH A 1.5°C
TRAJECTORY
The reduction of GHG emissions and the fight
against climate change are an important focus of Quadient’s CSR
program. Defined at the beginning of 2021, Quadient’s initial
target was a -28% reduction by 2030 for scope 1 and 2 GHG emissions
against 2018’s baseline. This was set in line with the SBTi
methodology based on the “Well below 2°C trajectory”. In 2021,
Quadient’s corporate actions combined with the impact of COVID on
the Company’s ways of working led to a larger than anticipated
decline of -45.9% in scope 1 & 2 emissions (against the 2018
baseline). As the Company returns to a more dynamic way of working
and the business continues to grow, this performance is likely to
recede in the short-term due to an expected increase in energy
consumption and corporate travels.
Building upon this 2021 outcome, Quadient has
decided to raise its emission reduction targets, now aiming for a
much more ambitious -50.4% reduction of for scope 1 & 2 GHG
emissions by 2030 (still against the 2018 baseline). This new
target is set according to the more demanding SBTi methodology
based on the “1.5°C trajectory”. To align management to this
target, the climate ambitions reflected here have been introduced
as part of the Company’s long-term incentive plan criteria with a
20% weight. This criteria is also part of the CEO’s long-term
incentive plan criteria.
Regarding scope 3 GHG emissions, Quadient has
kept its 2030 target unchanged, i.e. a -40% GHG reduction per €
million revenue compared to 2018 baseline, set in line with the
SBTi methodology based on the “Well below 2°C trajectory”.
FULL-YEAR 2022
OUTLOOK CONFIRMED
Performance was in line with Quadient’s
expectations for the first quarter 2022, driven by strong market
dynamics and solid business fundamentals, while Q1 2022 organic
growth was impacted by a high comparison basis for both
Mail-Related Solutions and Parcel Locker Solutions.
Despite growing uncertainty in the macroeconomic
environment, Quadient expects the business trends for its three
solutions to remain solid. Current trading conditions remain
attractive with i) positive developments for Intelligent
Communication Automation’s cloud platform cross-selling and
up-selling as well as growth opportunities in new geographies; ii)
expected further penetration for Mail-Related Solutions’ iX product
range in Quadient’s main markets, while backlog levels remain high
thanks to solid bookings; iii) a promising pipeline of projects in
Parcel Locker Solutions supported by sound global e-commerce and
logistics market dynamics; and iv) innovative products contributing
to clients’ automation and cost savings. In addition, regarding
supply chain conditions, Quadient has not experienced any further
deterioration neither in terms of freight and raw material costs,
nor in terms of shipping delays.
Against this backdrop, Quadient expects organic
growth to resume and accelerate throughout the year, confirming its
FY 2022 guidance of an organic revenue growth of at least 2%4 vs.
2021. Quadient continues to expect double-digit organic sales
growth in both Intelligent Communication Automation and Parcel
Locker Solutions, and an organic sales decline in Mail-Related
Solutions to remain contained.
From a profitability standpoint, Quadient also
reiterates its guidance of a low to mid-single digit current EBIT5
organic growth compared to 2021. The Company’s business model
benefits from a largely recurring and indexed installed based. In
addition, Quadient expects to build on both its good track record
of cost control and some pricing power against inflation.
Q1 2022
BUSINESS HIGHLIGHTS
Quadient Continues Footprint Expansion
in Document Automation Cloud Solutions with Impress Distribute now
Available in Germany
On 12 April 2022, Quadient announced the launch
of Impress Distribute in Germany, expanding in yet another major
European market the capabilities of Quadient® Impress, its
cloud-based document automation for small and medium businesses
(SMBs). With Impress Distribute, Quadient now brings additional
communication channels to German users, in particular print mail
outsourcing in partnership with SPS, a global full-service provider
of business process services.
Purolator Installs Parcel Pending by
Quadient Smart Lockers to Enhance Customer Experience and Meet
Increased Package Delivery Demands
On 22 February 2022, Quadient announced that
Purolator, one of Canada’s leading integrated freight, package and
logistics solutions providers, has installed more than 20 Parcel
Pending by Quadient smart locker systems at its busiest terminals
in Canada. The automated smart lockers provide Purolator’s
customers with a convenient and secure way to retrieve their
packages, any time, day or night.
Quadient Launches its Accounts Payable
Automation Solution Beanworks
in France and the UK
Amidst Rising Demand
On 16 February 2022, Quadient announced the
launch of Beanworks by Quadient in the United Kingdom (UK) and
France. The leading accounts payable (AP) automation solution
provides accounting teams with a faster, more secure and easier way
to approve invoices and pay vendors from anywhere.
POST-CLOSING EVENTS
Quadient Named a Leader in IDC
MarketScape for Cloud Customer
Communications Management
On 2 June 2022, Quadient announced that the
Company was named a “Leader” in the IDC MarketScape: Worldwide
Cloud Customer Communications Management Applications 2022 Vendor
Assessment - Dynamic Delivery of Multi-channel Personalized
Experiences (doc #US48167722, May 2022). The report provides
details to assess providers of CCM solutions, including Quadientâ
Inspire and Quadientâ Impress. According to the IDC MarketScape
report, enterprises that seek omni-channel customer experiences
through the lens of a customer journey should consider Quadient.
The IDC MarketScape listed customer experience strategy,
performance and scale, and implementation experience as strengths
of Quadient.
Quadient Launches Automated Accounts
Receivable Solution YayPay in
France
On 10 May 2022, Quadient announced the launch in
France of YayPay by Quadient, a cloud-based intelligent accounts
receivable (AR) solution that automates the entire AR process from
credit to cash application. The YayPay expansion comes on the heels
of the launch earlier this year of Quadient’s accounts payable (AP)
automation solution, Beanworks, in France and the United Kingdom,
as well as last month’s launch of Impress Distribute, its
cloud-based omnichannel document distribution solution, in Germany.
Powered by artificial intelligence and machine learning, YayPay’s
predictive analytics engine provides insights on payer behavior and
their impact on cash flow, with the use of dynamic dashboards and
process automation that help to reduce outstanding receivables and
day sales outstanding (DSO) for companies. Acquired in 2020, YayPay
is part of Quadient’s best-of-breed and cloud-based Intelligent
Communication Automation (ICA) platform, which is bringing together
customer communications management, financial automation, customer
journey mapping and document automation. In 2021, Quadient software
activities represented revenues of more than €200 million.
Quadient and Decathlon Reaffirm
Partnership on Parcel Lockers
On 3 May 2022, Quadient announced that
Decathlon, a leading global sporting goods retailer, will equip
dozens of additional stores with Quadient’s automated parcel
lockers in 2022. Since the adoption of the first Quadient locker
solutions in 2015, Decathlon has equipped 62 stores in France with
the lockers. The success of the lockers, which has been tested and
certified by the retailer’s teams, motivated the sports brand to
expand its partnership with Quadient. New consumer consumption
patterns and growing demand for more convenient delivery solutions,
accelerated by the global pandemic, led Decathlon to refine its
omnichannel strategy by increasing the pick-up options for its
“click & collect” offers.
***
CONFERENCE CALL &
WEBCAST
Quadient will host a
conference call and webcast on 7 June 2022 at 6:00
pm Paris time (5:00pm London time). The meeting will be held in
English.
To join the webcast,
click on the following link: Webcast
To join the conference
call, please use one of the following phone number:
▪ France: +33 (0) 1 70
37 71 66;
▪ United States: +1
212 999 6659;
▪ United Kingdom: +44
(0) 33 0551 0200;
Password: QUADIENT
A replay of the audio
webcast will be available for a period of one year.
CALENDAR
- 16 June 2022:
Annual General Meeting
(https://invest.quadient.com/en-US/annual-general-meetings)
- 26 September 2022: First
half 2022
results and second quarter
2022 sales.
***
About Quadient®Quadient is the
driving force behind the world’s most meaningful customer
experiences. By focusing on three key solution areas, Intelligent
Communication Automation, Parcel Locker Solutions and Mail-Related
Solutions, Quadient helps simplify the connection between people
and what matters. Quadient supports hundreds of thousands of
customers worldwide in their quest to create relevant, personalized
connections and achieve customer experience excellence. Quadient is
listed in compartment B of Euronext Paris (QDT) and is part of the
CAC® Mid & Small and EnterNext® Tech 40 indices.
For more information about Quadient, visit
https://invest.quadient.com/en-US.
Contacts
Catherine Hubert-Dorel,
Quadient+33 (0)1 45 36 30
56c.hubert-dorel@quadient.comfinancial-communication@quadient.com Caroline
Baude, Quadient+33 (0)1 45 36 31 82
c.baude@quadient.com |
OPRG FinancialIsabelle Laurent / Fabrice Baron+33
(0)1 53 32 61 51 /+33 (0)1 53 32 61
27isabelle.laurent@oprgfinancial.frfabrice.baron@oprgfinancial.fr |
1 Q1 2022 sales are compared to
Q1 2021 sales at constant exchange rates (€11 million
positive currency impact over the period), to which is added,
prorata temporis, revenue from Beanworks acquired in March 2021,
for a consolidated amount of €0.7 million, and excluding
automated packaging activities divested at the end of H1 2021,
accounting for €4.4 million in Q12 Q1 2022 ARR benefited from a
c.€5 million positive currency impact vs. Q4 20212 FY 2021 ARR and
customer number were corrected for a c.€2m / c.280 customers double
counting4 Compared to fiscal year 2021 at constant exchange rates,
including Beanworks acquired in March 2021, for a consolidated
amount of €0.7 million, and excluding automated packaging
activities divested at the end of H1 2021, accounting for €13.8
million5 Current EBIT = current operating income before
acquisition-related expenses
- 2022 Q1 - Quadient VA VDEF
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