CREALOGIX Group provides digital banking technology solutions to banks, wealth managers and other financial services companies. The company’s suite of solutions includes online and mobile banking, digital payments, digital learning and security.
H1 recurring revenue grew by 48% reflecting an ongoing shift to SaaS and the acquisition of Elaxy BS&S. However, due to some uncertainties over the timing of new contracts and the magnitude of the shift to SaaS, management reduced its FY19 EBITDA guidance and deferred its long-term projections until later in the year. We cut our EBITDA forecasts by 25% in FY20 and 26% in FY21. Nevertheless, the digital banking industry dynamics remain attractive and pure-play CREALOGIX has a strong pipeline. In our view, CREALOGIX is uniquely positioned in this industry and is an attractive play on digital banking.
CREALOGIX develops and implements software that enables digital banking for “the digital bank of tomorrow”. The solutions are most often used by traditional banks to enable their journey to digitalisation, through the provision of a sophisticated, modern omni-channel offering to their clients. The group’s products are front-end solutions that integrate with customers’ back-end systems. The technology has won many awards, including three consecutive awards at FinovateEurope in London – this year CREALOGIX TimeWarp was voted a “Best of Show” product. In December, Forrester named CREALOGIX a leader for Digital Banking Engagement Platforms.