EasyVista’s H1 sales reached €22.9m, +24% growth, of which +28% in recurring revenues (80% of total sales). We remind that the 2019 figures are no longer boosted by the change in contracting mode (c.+10% impact on FY 2018), reflecting a strong organic momentum. Management maintains its +20% sales guidance for the full year, in line with our current expectations.

+20% annual trend on track

Q2 sales were up 18%, after +30% in Q1, +9% in Q4 18, and +30% for FY 2018, which was c.+10% boosted by the change in contracting mode (substitution of traditional SaaS by a three-year renewable licence (RL) mode, with an earlier recognition of revenue (c.80% of a three-year revenue contract in year one, while the SaaS model captures a third in each year). In H19, RL represented 44% of sales and SaaS 21%, vs. respectively 29%/32% in FY 2018.

New solutions prove to be successful

Easyvista provides a complete range of easy-to-implement ITSM solutions. The main product “Oxygen” is gaining new significant clients, as well as “EV Self Help” solutions (saving 20-30% of a user’s tickets towards IT people), significantly accelerating, and now accounts for more than 10% of total sales.

33 new clients in H1

Illustrating EasyVista’s capacity to gain market shares, thanks to a state-of-the-art sales and marketing organisation, 33 new clients have been added during H1, in both the US (Refresco, Tech Data…) and Europe (Boulanger in France, Ocaso in Spain…). In the Public sector, the group gained in particular Centre National des Etudes Spatiales (CNES) et la Direction Générale de l’Aviation Civile (DGAC) in France.

No change in valuation and recommendation (BUY)

Growth momentum in 2019-20 should be close to +20% p.a., triggering a significant EBITDA margin growth, as c.90% of costs are fixed. Management’s 20% EBITDA/sales target by 2021 (from 10% in 2018) looks realistic. Our base case scenario is reflected in our €52 target price.

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