Hello, and welcome to the Hexagon Q3 2021 report. Throughout the call, all participants will be in listen only mode, and afterwards there will be a question and answer session. Today, I'm pleased to present Ola Rollén, President and CEO. Please go ahead with your meeting.
Thank you, and welcome everyone to this third quarter of 2021. If we move straight to slide four, the overview of the quarter. We grew by 15%, recorded 10% organic growth, and the bridge is, M&A contributed with 4%, currency 1%, and organic growth 10%. Sales netted at EUR 1,077,000,000 , and EBIT came in at 28% EBIT margin. If we then move to slide five, just a reminder that Q3 is our second weakest quarter in the seasonal pattern, where Q1 is the weakest typically, and Q2 and especially Q4 are strong quarters. Moving to slide six, key figures for the third quarter.
Net sales amounted to EUR 1,077,000,000 , and as I've just stated, earnings or EBIT EUR 297 million, which is 19% better than the corresponding period of last year. We've got the nine-month numbers on slide seven for your reference. Moving on to cash flow. Cash flow from operations before changes in working capital improved and was quite strong in the quarter. We had a setback in working capital, where prepaid expenses was the single largest factor in the working capital build-up in this quarter. Investments were along the lines with our plan for 2021, so nothing abnormal there. The cash conversion was 79% in the quarter.
Moving on to slide nine, we can see that we're still at very low levels when it comes to working capital to sales, slightly shy of 6% in the third quarter, but up from the 3.8% we recorded in the second quarter. Market development, if we move to slide 11. Not much has shifted in the sales mix. We do see China up 1% in terms of mix and the rest of Asia Pacific down 1%. The rest remains stable. As you can see, we have 1/3 of our business in each region around the world. Slide 12, trends for organic growth per geographic region. North America, Western Europe, China, Asia, and South America all report above 8% organic growth.
The only area with slightly lower organic growth in the quarter is Eastern Europe, Middle East, and Africa, where we had strong order intake and sales in Africa to the mining sector in the third quarter. Slide 13 is for your reference for studies later on. Slide 14, EMEA market trends. Solid growth in Western Europe where we see 11% organic growth. It's a combination of the recovery in the construction, the larger construction and infrastructure sectors, which is driving demand for surveying and engineering products. We also see a continuous recovery in the manufacturing sector, automotive and aerospace, across Western Europe. Weaker development cited in Spain and France for the quarter. Already commented on Eastern Europe, Russia, and Middle East. Russia is driving that growth. Eastern Europe was also strong, while Middle East, Africa was slightly weaker.
Moving on to America, slide 15. North America recorded 8% organic growth with strong demand in infrastructure, surveying, and construction. We also saw a return to growth in the manufacturing sector, as well as power and energy. We saw weakness in our defense-related business, connected to SI. South America recorded double-digit organic growth. Strong development both in the Andean countries as well as in Brazil, with a super strong double-digit growth. Moving on to Asia, slide 16. China recorded 10% organic growth. It was the combination of a recovery in several sectors, but also a strong underlying demand from the manufacturing sector, broad-based manufacturing, anything from electronics, electric vehicles, aerospace, and general manufacturing. Tough comparison numbers for infrastructure and construction that recovered already in the third quarter of 2020, and we saw strong growth already last year in China.
Japan, New Zealand, Australia, India all recorded double-digit growth. Southeast Asia, where we are beginning to see a recovery in the shift from manufacturing in mainland China to countries such as Vietnam and Malaysia and Thailand. South Korea was the only market that recorded decline in sales due to weakness in the power and energy sectors. Reporting segments, if we move to slide 18 and discuss Geospatial Enterprise Solutions. Organic growth for this segment was 10% in the quarter, and within that segment, we saw Geosystems surging at 16% organic growth, driven by strong demand from all core markets for Geosystems. SI -6% organic growth, and that was the weaker US defense demand in the third quarter. Autonomy and Positioning 8% organic growth, a strong growth in precision agriculture segment for the quarter.
Sales amounted to EUR 552 million, up from EUR 487 million previous year, and EBIT margin was 30.3%, up from 24.4%, almost 2% improvement in the margin in the quarter. Moving to slide 19, Industrial Enterprise Solutions. Organic growth, 10% here as well. The mix is MI growing at 13%, driven by the strong recovery in general manufacturing, automotive, electronics, and the software portfolio. PP&M returned to growth in the quarter and recorded 2% organic growth. It was primarily driven by a recovery in the North American market and solid growth in our asset information management portfolio, as well as the AEC products. Sales amounted to EUR 525 million, up from EUR 453 million last year, and EBIT was improved by 0.1% to 25.5%.
Now, the gross margin on slide 20 continues to improve. This is the 12-month rolling average. So we record 64% for the last 12 months, up 1%. If we move to slide 21, it's good to see that we're now within our target range. We passed 27% EBIT margin for the last 12 months, and we're continuing to improve the margin. Talking a bit about M&A orders and product releases in the quarter, it was a big quarter. We acquired Immersal on slide 23. Immersal is a pioneer in spatial mapping and visual positioning, and what they do is they do something called spatial anchoring technologies. Spatial anchors is basically the way we navigate being humans in our surroundings. Immersal uses the same technology, and we will now embed this in our Hexagon products going forward.
Slide 24, enhancing materials management capabilities with Jovix. Jovix was acquired during the quarter, and it's an award-winning material tracking software that is developed specifically for the construction industry, and that will be integrated into our construction portfolio. Slide 25, we did an acquisition in China in the quarter as well. Wuhan ZG Technology was acquired. ZG Technology provides 3D digital solutions based on background of photogrammetry and remote sensing disciplines that Wuhan University has developed. This will strengthen our position in industries like auto, aerospace, 3D printing, biomedicine, rail, heavy machinery, and so forth. Slide 26, we had a big launch of autonomous sensors in the quarter. We introduced Leica BLK ARC and Leica BLK2FLY. BLK ARC is initially based on the Boston Dynamics rover or robot, but it will deliver a fully autonomous mobile laser scanning solution.
Leica BLK2FLY, it's the first fully integrated autonomous flying laser scanner. We don't call it a drone. It is a flying sensor. The beauty about it is that anyone can use it. With a few simple taps on a tablet computer, you can quickly learn how to operate both the BLK ARC and the BLK2FLY. This is seamlessly integrated into our cloud-based software, HxDR. Slide 27, introducing Hexagon Mine Mesher. Hexagon Mine Mesher is a tailored solution that combines blast design software with drilling and blast movement monitoring. It brings accuracy and precision to every step of the drill and blast process in mining operations. Slide 28, we've also introduced a new rail security and surveillance portfolio. It's from the BLK series, and we call it Rail Security and Surveillance.
Slide 29, the HxGN Content Program also launched a new functionality, and that is digital twins of major cities. It's an off-the-shelf product, where if you're interested in a city, you can buy that in 3D, 2D or 3D. It will enable users to better manage and monitor critical assets within those city centers and assess risks, provide visualization of new products, projects and so forth. Slide 30, accelerating autonomous quality assurance. Hexagon launched our HxGN Robotic Automation, which is the new robotic programming and control software that enables non-specialist quality professionals to program industrial robots to perform fully automated quality inspection. Slide 31, we launched a product called HP-L-10.10, and this is a small revolution when it comes to measuring blades and blade applications, which are crucial for anything from wind power to turbines and aerospace engines.
Slide 32, we're also supporting India's new bullet train project. There will be a corridor operated between Mumbai and Ahmedabad, and the train will travel at 320 kilometers per hour. They used our surveying total stations and levels to do precise alignment, which is crucial for high-speed rail. We proved it in several markets, among others, in the Chinese build-out of high-speed trains. Slide 33, HxGN OnCall continued to reap success in the market. We had several orders in the quarter, among others in Bahia, one of the largest states in Brazil. We also had an installation to monitor traffic in São Paulo. I'm moving to slide 34. We've also helped Yamaha Motor to simulate an unmanned helicopter in the quarter.
Yamaha Motor was in need of a robust solution to accurately simulate the fluid and structural performance of unmanned industrial use helicopters. They chose our simulation tools to do so, and we streamlined the efficiency and the cost effectiveness of the platform. Slide 35, Lane Xang Minerals in Laos has used Hexagon's MineOperate OP Pro and MinePlan Enterprise to assist in the process of transforming this from a copper to a gold-focused mine. Slide 36, building an end-to-end engineering digital twin. Harbour Energy is U.K.'s largest independent oil and gas business. They had legacy solutions to track their asset performance, and they turned to Hexagon to help to standardize these processes and enable multiple external and internal users to work concurrently and collaboratively within a single controlled environment.
They chose Hexagon SDx as the basic platform and several add-on solutions to create this digital twin. Slide 37, Numaligarh Refinery chose Hexagon as well to support its digital transformation. This is a trend that we see more and more in plant assets that you need to digitize your processes. They also choose Hexagon SDx as their platform for digitalization. Slide 38. We're introducing a new car body positioning system, which is very important in automotive factories. VPOS 60 car body positioning system is using something called six degrees of freedom to position car bodies against industrial robots. This system enables robots to adjust positions in real time, mitigating inaccurate positions which can lead to collisions or failed quality and simply avoid collisions between robots and the car body. Slide 39.
Robotic cells powered by Hexagon's technology is helping to inspect challenging components. In this case, it was Škoda Auto in the Czech Republic that needed to switch from so-called tactile measurement to optical measurement technologies to increase throughput and overall efficiency, but without sacrificing the accuracy of the system. They used our robot automation software to do so and our optical metrology sensors. That was the summary of this quarter, and if we now turn to the final slide 41. We have a record third quarter in sales and operating earnings. It is actually the second strongest quarter ever in the history of Hexagon. We did see supply constraints of certain components that hampered the growth and profitability, and we estimate that to a 2% impact on growth in the quarter.
We also hosted a Capital Markets Day where we launched new financial targets. We've stated that between 2022 and 2026, we will on average grow by 8%-12% per annum. The split will be 5%-7% organic, 3%-5% structural growth, and we will achieve an EBIT margin above 30%. With that, we've come to the end of this presentation, and we now open up for questions if there are any.
Thank you. If you wish to ask a question, please press zero and one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero and two to cancel. There will be a brief pause while questions are being registered. The first question we've received is from Joachim Gunell, DNB Markets. Please go ahead. Your line is now open.
Thank you for that. Good morning. If you can perhaps help us a little bit more with regards to the commentary here on the sequential development of the supply chain constraints, more in particular, what that alludes to and what the mix shift you see for both. I mean, what's the differences between your different business segments here? If we start off with geospatial, which seems to have weathered this better, and industrial as well. Thank you.
Yeah, no, it's difficult to say because the situation is moving every day. We're trying to redesign components to be able to use other suppliers, but we're suffering from, in principle, the same problems as everybody else, silicon wafer-based components. That is touching our A&P and our Geosystems businesses primarily. While obviously software businesses are not impacted to the same extent as these hardware-driven businesses.
That's helpful. Can you also on that backdrop perhaps, or comment about how fast software was growing here in Q3 year-over-year versus hardware and services?
Software was growing at a slightly lower rate simply because it's very much recurring revenue. In an upturn, in a cyclical upturn, non-recurring revenues tend to grow faster than recurring revenue. Slightly lower than the 10% average, and hardware was growing faster than the 10% average.
Very clear. Just a final question here with regards to the organic growth ambitions from the CMD. Can you talk a bit about how this slightly higher ambitions on organic growth bridges with an ambition to drive more of, call it, the SaaS transformation? I mean, well, basically further down the line, replacing perpetual software licenses into subscriptions.
No, I don't see that as a conflict. We basically think that the global markets, our end markets, will perform slightly better and that they are slightly more imbalanced over the coming five years than they were in the period 2016 through 2021. What I'm alluding to is really the energy markets where we believe we will have a more steady demand from our customer base in the energy markets compared to the previous five years. That will in turn fuel manufacturing and construction. That is the outlook, really.
Understood. Thank you.
The next question is from Mikael Laséen, Carnegie. Please go ahead, your line is open.
Yes, thank you for taking my question. Good morning. A question about PPM. They grew by 2% in Q3. Can you talk about the growth per product category maybe and your end market development in Q3?
Yeah
That's the first part.
Both AIM and AEC grew at strong double-digit growth in the quarter. Then we had a contraction in the EPC-related market where we sell software to EPCs. We had a slight growth in what we call the owner/operator market in oil and gas or energy.
Okay. You see that the EPC side and the owner operator side as I mean more trends going forward that will continue, or you see a pickup there as well? Or signs of a pickup.
Our view is that over the next five years, growth is probably gonna be challenging and slow in the EPC segment. We do see growth in the owner/operator segment going forward, and we do believe that AIM, especially in combination when we include Infor EAM in that product portfolio, will grow strongly together with AEC.
Okay. Just a final one.
You can see a mix shift over the next five years.
Okay, got it. Just a clarification. Can you say how much asset information on AEC or what percent of the segment revenue in total, approximately?
I can, but you have to bear with me one second. AIM. It is roughly 20% now.
Okay, great.
The two.
Thank you very much.
It's gonna grow further when we consolidate Infor EAM.
Okay, thank you. We'll go to the next question. It is from Kathinka de Kuyper, J.P. Morgan. Please go ahead. Your line is now open.
Hi, thank you for taking my question. Defense and public safety still seems quite weak. Could you provide more color on what happened in those end markets?
Yeah. Public safety was not weak. It was our defense-related where we have a classified business where we sell product into the U.S. defense, and that was weak in the quarter. The public safety business actually grew in the quarter.
Okay. Got it. Which of your products are really driving the demand? You also had some launches this quarter. Can you comment on the early traction you're seeing for these products?
For new products or?
Yeah, sorry, new products. Indeed.
I think it was pretty much the product that I showcased in my presentation. You see a range of industrial solutions where we improve the efficiency for anything from electronics to the manufacture of cars over to construction and infrastructure solutions as well as mining solutions. It was a pretty strong quarter across the board for most products. I wouldn't call out any new product because this is a broad-based recovery that we see from very low levels of activity in the global economy. We shouldn't forget that 2020 was a bad year. It is really the recovery we see, and it's across the whole industries.
Okay, got it. Then, final question, just coming back on the component shortage. Could you quantify what you thought the impact was on margin this quarter and how we should think of that next quarter?
The impact was 2%, which translates to something like EUR 20 million, EUR 25 million top line. Obviously, when you have everything paid for in a quarter and you lose out on the margin EUR 20 million, EUR 25 million, the incremental margin on those millions is very high indeed. It is very close to what you see our growth margins are.
Okay, thank you very much.
The next question is from Sven Merkt, Barclays. Please go ahead, your line is now open.
Great. Good morning. Thanks for taking my question. I have first a question on the demand environment. To what extent do you believe is the demand you are currently seeing at least partly driven by customers bringing orders forward just because they expect longer delivery times as a result of you know overall constrained supply chain? And then secondly, you started another share-based compensation program. Should we expect share-based compensation to further increase in the future as you use this more heavily as a compensation tool?
I think first of all, no, we don't see any customers bringing orders forward. Our products are not products that you bring forward. You buy them when you have a need. So I don't see that. Our share-based compensation, we did not introduce a new program. It's a part of the program that we launched at the AGM one year ago. It's a four-year program that will run over the next four years.
Yeah. Yeah. I meant that you added a second element to that. That's why the share-based compensation now increased. Should we expect that there'll be more increases like this?
It will gradually increase to EUR 60 million per annum, and that has been communicated. Over the next four years, it will grow to that level.
Okay, that's clear. Just maybe one more question, just on China. It was down 3% in GES. Could you just give us a bit more color here? You mentioned that there was obviously a tough comp, but we're also seeing a bit of cooling in the construction market in China. What extent has that already influenced your business, and has there been any change in trends towards kind of the end of the quarter?
No, it hasn't. The end of Hexagon's quarter is always the busiest period. If you take an average quarter, we roughly do 80% in the last month, and out of those 80%, we probably do 50% in the last two weeks. That is just our cyclicality through a quarter. There has been a slowdown, but it hasn't really impacted. I would say it's more comps than a slowdown in the market. We are typically not active in the segments that we're seeing slowing down, residential construction.
Okay, that's clear. Thank you.
The next question is from Daniel Djurberg, Handelsbanken. Please go ahead. Your line is now open.
Thank you very much for taking my questions. Like most questions been asked already, but I have a couple of more philosophical ones, if I may. The first one would be on Hexagon as an sustainability enabler. Many of us saw your presentation HxGN LIVE 2019, for example. I was thinking if you can comment a little bit on, we have something called the EU taxonomy, et cetera, that a lot of people struggle with to understand how to get in the revenue aligned with this, et cetera.
I'm thinking if you could perhaps communicate the percentage of sales that you believe is aligned with this EU taxonomy, but also if you have some business that is, you could say, is counterproductive, that you would like to spin off or something.
Sorry, I missed the last because I needed to understand your question on EU.
Yeah.
If we start with EU taxonomy, we are gonna communicate that in the annual report of 2021.
Okay.
Hopefully, if you wait for that, it's gonna help you understand.
I will. Definitely will. Thanks. I have another philosophical one, if I may.
Yeah, sure.
That is a little bit more easy to answer perhaps. That is, you have new products going into the more autonomous sensors solutions, like add-ons on the BLK2GO and 360 and 3D, et cetera. My question is, do you see any hurdle from these being a little bit more complicated, i.e., it's being added upon this Spot from Boston Dynamics that could impact too many volumes or usability or price perhaps? Also with the same with the BLK2FLY, if it's a hurdle to make your customer learn them to man or to handle these new gadgets. Two questions.
I think BLK2FLY, even I can fly it, so I don't think that's a hurdle. I think that's a pretty good add-on to a portfolio of products that a typical surveyor or engineer would use on a construction job site or if you want to remodel a building.
Yeah.
or whatever you want to do. I think the BLK2FLY is pretty straightforward. BLK ARC, which is the Boston Dynamics platform, might be a bit more intuitively, I don't know. People might hesitate a bit more to buy it simply because it is a bit more, I don't know, alien to what you usually use. Bear with me here.
Yeah.
Uh, but-
I guess we will learn.
I think that the ARC will find its way in applications where you might not want to send people, and it will patrol and scan industrial facilities, petrochemical facilities. Let's say you have a leak or something, and you wanna send out service engineer to check on that leak. Well, if it's the refinery, it might be better to send the dog than sending a human.
Yeah.
I think it will find its way. I believe the BLK2FLY will have an easier and more rapid growth than maybe the BLK ARC. But I do believe this is just the beginning of robotics as we see it in all our applications. Five years from now, when we have an earnings call, you will think nothing about these things. It will be.
The very last one, very fast one, and it is on the lower end of the BLK, the 3D. We see some iPhones, et cetera, coming with lidars, small lidar scanners, et cetera, with apps like Sketchfab and Polycam, et cetera. Do you see a risk for price issues coming from beneath? And also, would you be thinking of, you know, having your own Leica 3D scanning photogrammetry application on the to sell for these users?
No, I see it as a great complement. We've always had consumer businesses sort of touching our professional businesses. You had Google Maps a couple of years ago that started to sell into the professional mapping market. Typically, what happens is that you have a defined consumer space where you have good enough solutions, and then you have the professional space where these consumer technologies are simply not good enough. The same thing goes with this lidar, that the accuracy is not good enough for true professional applications where we reside. What it does is, it enables people to think out of the box how you can use lidar technologies. Typically, it grows the end market for us as well as for the consumer companies introducing them. We see it as a benefit, actually.
Perfect. Thank you, and good luck in Q4.
Thank you.
The next question is from Alexander Virgo, Bank of America. Please go ahead. Your line is open.
Thanks very much. Morning, Ola. How are you? I had a quick kind of a follow-up. I suppose it's more just around the color for how you see the progression of the next two or three quarters as we go through various issues around supply chain and inflation, all the rest of it. I mean, the fact that you've printed the second-best quarter in history in your weakest quarter in the year is obviously something to be considered. I'm just thinking about how we should think about the way your margins evolve, primarily. I'm thinking that.
I'm asking that question, I suppose, because you're at GES margins north of 30% in a hardware business, which is being affected by supply chains and with weak China as well. On the IES side, your margins are still in the mid-20s, which is a little unusual, if you'll pardon me for saying it, just because of the mid, the software mix. PPM has recovered. China's growing 15%. I'm just trying to get a feel for how, you know, how do you see the weight of the two divisions sort of developing over the next, you know, 12 months, I suppose. I'm just trying to think about how we factor in the fact that you printed this very, very strong quarter in spite of the various headwinds that you've got.
Those headwinds do appear to be ameliorating, but probably not very quickly. I appreciate it's a slightly fluffy question, but I'm just trying to get a feel for how you're setting it up and how you're thinking about the next 12 months, given what we've got in front of us.
I wish I could answer that. You should just be happy with the quarter we've just printed. You shouldn't ask for that.
I'm very happy with it, but I'm just trying to get a feel for how you know, when we see China going, you know, it's that, it's weaker in on comps, I take it. I guess I get that in GES.
Yeah.
It's strong in IES. We've got multiple question marks around power outages, around the sort of heavy industry being controlled quite heavily into the end of the year, question marks around the impact that that has on China growth. That's been a big engine for you over the last sort of 12 months through recovery. You've got Europe recovering, U.S. recovering. It all kind of feels from a CapEx standpoint, which is what's really driving your business, quite positive. And yet, yeah, there's a sort of an element of uncertainty around it. I'm just trying to get a feel for how we interpret the fact that you've printed a quarter like this in the weakest quarter in the year, and how
Yeah.
I know you don't provide guidance, but I'm trying to push you for a little bit of help in terms of how 'cause I don't wanna normalize it, but there's obviously, you know, a chunk of business that still you haven't been able to deliver or capture because of constraints. Actually, it should have been an even stronger quarter. I'm just trying to think about how to be more of that going forward, basically.
I think philosophically you could say that geospatial should have a positive outlook simply because we haven't seen any impact from government-sponsored stimulus programs because they're late. On both sides of the Atlantic, politicians are planning to pour billions into infrastructure. That should provide, let's call it a very good backdrop for the Geospatial business going into 2022. Let's disregard components for a bit. I do believe that eventually the big engine of the global economy will catch up, and we will not see component shortages throughout 2022. That's Geospatial and it should be set to continue. We look at the Industrial.
What we see is a mix shift from PP&M to MI, and MI has slightly weaker margins than PP&M, which has an impact on the overall margin on the industrial segment. Having said that, PP&M had a big investment quarter where they invested significant resources into OpEx for AEC and AIM, which had an impact on the incremental margin of the sales improvement that we saw in the quarter. That is, of course, a short-term issue that you grow into as business continues to grow. You figure it out yourself.
Okay. All right. That is very helpful. Thanks. Would you say just on the cost side, are you now fully run rate on the original kinda EUR 130 that you'd targeted?
Yeah.
I think what people tend to forget, 2020 was an unnatural abnormal year, so is 2021. If you compare the third quarter of 2019 with the third quarter of 2021, you're beginning to see a pattern where you can see that our OpEx is significantly lower and our gross margin is improved. I think we deliver 2% stronger EBIT, Q3 of 2021 compared to Q3 of 2019. That is the lasting impact of all this restructuring.
That's great, Ola. Thanks very much, and thanks for bearing with my question.
Thank you.
The next question is from Victor Husberg, Bank Julius Baer. Your line is now open. Please go ahead.
Yes, good morning. Just two short questions. If you could remind us about the seasonality in the EM business, if it does follow your seasonality in the year.
No, it's typically, like all software businesses, the fourth quarter is the strongest quarter. The second half tend to be stronger than the first half.
Okay. Thank you. And also, coming off the last point you made in the last question about this year obviously being a non-normal one in 2020 as well. I think in connection with the Q2 call or in the Q2 call, you said that 2022 is supposed to be a more normalized demand year. Now with the two months having passed, how would you see the situation going into 2022? Do you see it as a more normalized year, if we exclude the new products, or do you see something having changed?
No, I think it's gonna be normal. We always have to safeguard any predictions due to the shortages in electronics, which could have an impact early in 2022. I do believe that what we see is a demand-led recovery in most markets in 2021, and that demand will normalize in 2022.
Okay. Very clear. Thank you.
Thanks.
The next question is from Nay Soe Naing , Berenberg. Your line is now open. Please go ahead.
Hi, Ola. Good morning. Thank you for taking my questions. I've got a question on defense, you know, where we're seeing a little bit of weakness there. Then if my numbers are correct, I think it's been a couple of quarters that we're seeing this weakness there. Just wanna get your sense on the outlook for this segment and on the defense orders that were affected the performance in the quarter. Should we think about these orders as delays, or are these the canceled orders? As in, will they come back in the future? If so, when can we expect them to come back?
What's happening is, it's a central agency that has sourced the software product centrally for more than 100 agencies within the US defense body. They decided to cancel that and asked all the local and regional bodies to source it directly. It's gonna take some quarters to pick up these orders. It was easier for us when we had one end customer that spread the licenses across hundreds of organizations. Now we have to do the work and go knocking doors and sell those licenses to the individual agencies. How long it takes until you've recovered that is hard to predict, actually.
Right. Okay. Understood. Thank you. Just one more question. Last one. Could you give us a little bit of update on the Infor EAM business? I know we just recently completed the acquisition. I just want to get a sense of the projected revenue and growth rate we had for that business. How is it tracking along?
The 9-month bookings are up double-digit, and the SaaS bookings are up 30%, so it's more or less in line with our own expectations for the business when we acquired it.
Perfect. Thank you very much, and congrats on the end of quarter.
Thanks.
There are no further questions, so I would like to come back to you.
With that, we're completely exhausted the third quarter of 2021. Let's do this again in February when we have the fourth quarter numbers. Thank you everyone for listening in.