Lleida.net increased SaaS sales by 26% in the third quarter

MADRID, Nov. 4, 2021 /PRNewswire/ -- Spanish listed company Lleida.net (BME:LLN) (EPA:ALLLN) (OTCQX:LLEIF) increased sales in its SaaS segment by 26 percent up to the end of the third quarter of 2021, compared to the same period in 2020.

As of September 30 this year, the company had sold aggregated €4.7 million worth of SaaS, or 984,000 more than it had traded in the first three quarters of 2020.

In the third quarter of the year alone, sales in the segment exceeded €1.5 million.

"For yet another quarter, our results are very positive, and the progress of the SaaS line proves that we have become an internationally relevant player in the digital economy," explained Sisco Sapena, CEO and founder of the company.

"These results show that we have been able to secure and consolidate our position in the market after the pandemic year," he said.

In total, the aggregated sales of Lleida.net's three lines of business (SaaS, SMS and ICX Wholesale) registered 12.58 million euros as of September 30, 860,000 euros more than in the first three quarters of 2020.

The improvement in the company's earnings is reflected in sales and gross margin, which increased by eight percent in the first nine months to €6.2 million.

The overall accumulated pre-tax result for the third quarter amounted to EUR 788,000.

21 quarters with positive EBITDA

Once again, the company recorded a quarter with positive EBITDA, making it 21, or almost five years of consistently making money.

In the third quarter, EBITDA was 412,000 euros. In cumulative terms for 2021, it amounts to €1.575 million, above 2019 and close to 2020, when it recorded €1.94 million.

Sustained sales growth

SaaS sales accounted for 37% of total sales in the quarter, but that improvement cuts across the entire company.

Overall sales saw an overall increase of 10% over Q3 2021 and seven percent year-to-date.

SMS Wholesale grew in the third quarter of the year over the second quarter, with sales totaling more than €2 million, or nine percent higher than in the same period of 2020.

The only line that declined slightly was the commercial SMS line, which fell by ten percent, although year-to-date sales improved compared to the previous year.

In the third quarter, this line accumulated more than two million euros in revenue. However, in the commercial SMS business, margins are increasingly lower due to increases in the price of destinations and increased competition.

41% more preferential and available financing

For yet another year, the company's financial debt has been negative. It also reflects the favorable financing conditions that have enabled the Indenova purchase operation and the need to ensure its inorganic growth.

Although last week Lleida.net announced the purchase of the Valencian technology company Indenova for 7.1 million euros, this was financed in part at an interest rate of Euribor plus 0.83%.

Consolidation of international sales

The commitment to global growth is reflected in the increasing weight of international sales, which increased from 53% in the third quarter of 2020 to 56% in the same period of this year.

Lleida.net has continued to invest steadily in innovation and development during the quarter and its internationalization efforts.

The company has reinforced its commercial and investor relations work, which has increased spending on external services.

This year, it has already participated in events such as the Universal Postal Union Congress in Côte d'Ivoire, the WWC in Madrid, or Investor Access in Paris.

The company has offices in 18 countries and clients in more than fifty, including financial institutions, insurance companies, utilities, and governments.

It is a provider of digital services for the postal authorities of South Africa, the United Arab Emirates, and Colombia, and since this year, Côte d'Ivoire, Djibouti, Gambia, Guinea, Madagascar, Malawi, Senegal, and Sierra Leone.

Since the beginning of the year, the company has been committed to increasing the human resources required to continue innovating and providing services. So far this year, the company has grown by 13 employees and now has 105 people, many of them outside Spain.