Basware Corporation, stock exchange release, January 23, 2015 at 13:00
Basware's strategy for 2015-2018
Basware's Board of Directors and management have updated the company's strategy and objectives for the next four years. The key strategic objectives are: 250 million processed transactions and increasing the share of recurring revenue to over 80% of net sales during the fiscal year 2018. During the strategy period, the company will also pursue organic annual net sales growth of over 10 percent and an operating profit of over 10 percent from 2016 onwards.
Basware has a leading portfolio of global networked purchase-to-pay solutions spanning e-invoicing to innovative new financing services for organizations of all sizes.
The Network Services business is expected to grow strongly during the strategy period. Solution Services is expected to grow moderately and be strongly profitable, thus creating a strong foundation for the company's growth. Financing Services, launched in 2014, will further expand Basware's service offering. The business is expected to commence during the latter half of 2015.
Strengthening Basware's position in the key markets and customer loyalty are objectives shared throughout the company. The strategy focuses on accelerated global growth both organically and through acquisitions. The strategy focuses on accelerating the growth of Basware Network and maximizing the number of transactions, creating new financing-related added value services and making them available through digital channels, as well as maintaining global market leadership in purchase-to-pay (P2P) solutions.
Network Services will focus on measures to maximize the number of transactions, which include new virtual operator partnerships and increasing the efficiency of supplier activation, as well as improving the availability of e-invoicing services through automation and more extensive utilization of digital marketing and sales channels. Basware will also continue to expand its network through acquisitions in line with its strategy.
The P2P offering and its delivery and sales organizations, which are the focus of the Solution Services business, have developed good readiness with Alusta technology. Basware will continue to deliver its P2P offering both as hosted SaaS and as an on-site license, the majority of the new business is expected to come from the SaaS model.
Basware's Financing Services deliver new and innovative services for companies of all sizes, combining invoice automation with financing services on the Basware Network for buyers and suppliers. Financing services will be provided in collaboration with selected partners. High volume and fast growth of transactions in Basware Network provide a strong foundation for offering real-time services that are more accessible, easy to use, and cost effective than the currently available alternatives.
Basware will continue to revise its sales and marketing model. Direct sales and marketing measures will be increasingly segmented according to carefully selected segments and companies. Basware will continue to expand the usage of multi-channeled digital services for marketing, selling and servicing its customers. Investments in obtaining channel partners and business support will continue.
The development of the solution and services portfolio is aiming to accelerate the go-live of cloud based solutions and e-invoicing and e-procurement services through product and process improvements and to make them available online to improve efficiency and profitability.
For more information, please contact:
Esa Tihilä, CEO, Basware Corporation
Tel. +358 40 480 7098
NASDAQ OMX Helsinki Ltd