<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=3529442&amp;fmt=gif">

1 min read

Interim Report - Q1 2017

Comments from CEO

VirtualWorks Group continues to execute on its corporate strategy and plan for 2017 as evidenced by the strong financial numbers of our VirtualWorks operations and the initial market response to ayfie. The strong figures are a result of our decision to switch from a perpetual model to a subscription based model in early 2015, along with increased activity by Konica Minolta. While maintaining a low burn rate our recurring subscription base continued to experience significant growth. Our recurring subscription revenue increased by 213% year over year from roughly NOK 9,3 million to roughly NOK 20 million by the end of Q1 2017. Konica Minolta spurred a 639% year over year growth in perpetual revenue as Cluster West (Germany, Netherlands, Belgium, and Austria) showed strong sales.

The streamlining of our operations through two reorganizations has allowed us to reduce operating costs while maintaining high efficiency. From Q1 2016 to Q1 2017, VirtualWorks Group reduced its operating expenses by roughly NOK 3,0 million, all while integrating the Language Tools GmbH team. Pairing the increase in revenues and the decrease in operating expenses results in a 49% year over year EBITDA growth. Although VirtualWorks Group has not achieved profitability, it currently has a very strong financial position. As of 31 March 2017, VirtualWorks Group completed a NOK 85 million funding round that will allow both VirtualWorks and ayfie to continue executing on their plans. VirtualWorks Group currently has no plans to raise additional capital, however, might seek additional funds if an acquisition or merger opportunity presents itself.


Erik Baklid

CEO, VirtualWorks Group AS


Request full report via our form on: http://www.virtualworks.group/contact/