- In the third quarter, the revenues of the Spyrosoft Group amounted to PLN 44.9 million, which means an increase by 68% YOY. Thus, the value of the Company’s revenues at the consolidated level for the first 9 months of the year exceeded their level for the entire 2020 (PLN 119.5 million vs. PLN 112.9 million).
- Consolidated EBITDA (i.e. operating profit increased by depreciation) in the reporting period amounted to PLN 7.98 million, which means an increase by 43% YOY.
- The Group’s net profit in the discussed period amounted to PLN 4.3 million, which means an increase by 82% YOY, reaching the highest quarterly net profit in the company’s history.
- In Q3 2021, the Group acquired 13 new clients and strengthened its team of experts by 101 new employees.
“The constant influx of new clients, a high demand for IT services and an increase in the number of projects implemented with previously acquired partners are the key growth factors for the Spyrosoft Group in the third quarter of 2021,” says Konrad Weiske, President of the Management Board of Spyrosoft S.A. “An important event of the past months was the establishment of a new entity within the Group – Spyrosoft Synergy S.A. based in Szczecin. Opening an office in this city will allow us to gain access to a large pool of engineers and IT specialists from this region and develop another area of specialization. In this way, we want to expand our offer for the automotive and industrial sectors. The team of the newly established entity includes people with extensive experience in the field of custom-made software, for many years associated with the Szczecin market,” adds Weiske.
In Q3 2021, the Spyrosoft Group acquired 13 new clients from the following industries: automotive, financial services, HR, media and entertainment, industry 4.0, geospatial and telemedicine.
The group of new clients includes a financial company from the USA, which works, among others, on products for analytics and monitoring cryptocurrency transactions using blockchain technology. As part of this cooperation, Spyrosoft implements a project in the field of cloud engineering based on the AWS cloud.
Consolidated revenues of the Spyrosoft Group in Q3 2021 amounted to PLN 44.9 million, 68% more than in the previous year. Their level was also almost 15% higher compared to Q2 2021. In the discussed period, the Company also recorded its highest quarterly net profit in history. It amounted to PLN 4.3 million, which means an increase by 82% YOY. Consolidated operating profit in 3Q increased by 51% YOY, to PLN 6.4 million. The Company’s EBITDA increased by 43% to PLN 8 million.
The consolidated cost of the Group’s products and services sold in Q3 2021 amounted to PLN 31.5 million and was 91% higher than in the corresponding period of the previous year. The higher rate of cost growth compared to the rate of revenue growth YOY results – as in the previous quarter – from the base effect: in 2020, due to the outbreak of the pandemic, the company implemented measures aimed at reducing costs without reducing employment, for fear of an economic downturn. The increase in costs in Q3 2021 is in line with the Group’s budget assumptions for 2021.
General and administrative expenses in Q3 2021 increased by 18.7% YOY to PLN 7 million. This increase also results from the base effect: during the pandemic, the costs of the support departments were kept to the necessary minimum. However, in the current year these costs, treated as investments in human capital, were incurred in accordance with the budget assumptions.
The Group is dynamically increasing the number of associates, both in Poland and on foreign markets. In Q3 2021, the Spyrosoft team increased by 101 people (compared to 56 in Q2 2021), thus increasing the total number of specialists cooperating with the company to 774 from 673 a quarter earlier.
“Investing in establishing new companies and opening new locations – as in the case with the new site in Szczecin – may temporarily affect the Company’s margin. However, this impact does not change the optimistic outlook for our financial results at the end of 2021, as well as for the first quarters of 2022,” says Konrad Weiske, President of Spyrosoft S.A. “This strategy will provide us with access to new groups of specialists and allow us to mitigate the risk of wage growth above the global average,” he adds.
On June 23, 2021, the decision was made to introduce Spyrosoft shares to the Warsaw Stock Exchange.
Selected consolidated financial results of the Spyrosoft Group:
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Spyrosoft is an international company from Wrocław that has been offering comprehensive software development services since 2016. About 86% of the company’s revenues come from contracts with foreign clients, mainly from Germany and the USA. The company cooperates with clients from 7 countries, whose diversified portfolio covers 6 specialized industries. The company has offices in Poland, the UK, Germany, Croatia, the United States and India.
Last year, Spyrosoft was ranked #1 in Europe among technology companies in the Financial Times “FT1000: Europe’s Fastest Growing Companies” ranking. It was fifth in the overall ranking. This year Spyrosoft was also included in this prestigious list.
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