Crealogix moves to SaaS model
Swiss digital banking software provider, Crealogix, is moving from its traditional initial licence to a Software-as-a-Service (SaaS) model, reports Jane Connolly.
Although the intended transition has resulted in a drop in profitability of just over CHF 5 million (roughly $5 million), sales have increased by 17% to exceed CHF 100 million ($101.5 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.