Operating environment and market outlook
Companies of all sizes globally are under pressure to improve their cash flows, find new innovative payment strategies and automate their financial processes and functions. The company expects the same to continue also in 2014 and the continuous need for services to remain at a favorable level among its customers.
Consolidation is expected to continue in the business environment, with the role of services growing in companies’ portfolios. Basware continues active analysis of acquisition targets especially in the e-invoicing market in Europe and in the U.S. according to its strategy.
By the end of 2015, Basware aims to become the largest business commerce network for buyers and suppliers. The penetration rate of e-Invoicing is still low. It varies between 5-30 percent depending on the country, and it has been estimated to grow strongly. The growing and evolving e-invoicing market will offer Basware excellent growth opportunities.
In Basware’s new organizational model the operations will be managed as two units: the Network Services business area will be responsible for the e-invoicing business and the Solution Services business area for Basware’s software business. The Network Services business aims at strong growth. The Solution Services business aims at moderate growth and strong profitability.
The organizational restructuring has particularly aimed at accelerating the deployment of company’s services and products, accelerating the production of SaaS and e-invoicing deals through product and process improvements and to make operations more efficient and improve profit-making ability. The company will continue to streamline its operations in 2014.
Basware expects its net sales and operating profit (EBIT) for 2014 to grow compared to 2013.