Swiss digital banking software provider, CREALOGIX, is moving from its traditional initial license to a Software-as-a-Service (SaaS) model, reports Jane Connolly of Fintech Futures (Finovate’s sister publication).
Although the intended transition has resulted in a drop in profitability of just over $5 million (CHF 5 million), sales have increased by 17% to exceed $101.5 million (CHF 100 million) for the first time.
Reporting preliminary results for the 2018/19 financial year, CREALOGIX states that the move to a SaaS-based, multi-year subscription model will result in greater revenue stability and sustained profitability increases in the long term.
The company believes that it will see solid cashflow levels and double-digit EBITDA margins from 2020/21 onwards. CREALOGIX notes that the continuing uncertainty around Brexit has had a pronounced negative impact on the UK business.
Recent new deals for the company have included agreements with Hampden & Co, LGT Vestra and MeDirect.
Founded in 1996 and headquartered in Zurich, Switzerland, CREALOGIX demonstrated its TimeWarp solution at FinovateEurope 2019, winning Best of Show. TimeWarp enables banking customers to run simulations of various scenarios in their financial lives to better understand how today’s decisions are mostly likely to affect financial outcomes.