(1) Return to sales growth
Strong growth in order intake, both in value (+30%) and in number of customers (+34%). Backlog building back to growth, up 27% from previous quarter. Profitability per project is strong.
(2) Cash buffer strengthened
Cash flow fundamentally improved, with return to growth and new leasing structure. Cash and receivables available at the start of Q2 is above NOK 200 million - a comfortable buffer given the improved cash flow profile.
(3) Cost structure reset
Cost improvements clearly visible on marketing (down 39%) and personnel cost (down 41%). Strong efficiency gains and confidence in ability to improve further, even as volumes grow, which will improve operating cash flow going forward.
(4) Consumer outlook improving
Consumers triggered by shorter payback times on solar and batteries, while resilience and backup demand is likely to get boosted in quarters ahead.
KEY FIGURES (change QoQ)
Order intake: NOK 154m (+30%)
Revenue: NOK 125m (-13%)
Backlog: NOK 195m (+27%)
Gross profit: NOK 31m (-8%)
Gross margin: 25% (+2%p)
EBITDA: NOK -65m (-9m)
Andreas Thorsheim, CEO, remarks on the quarter:
- This quarter was a big turning point for Otovo. Order intake grew 30% and the backlog added 27%, as we were able to attract more customers and sell more products.
The company ended Q1 with NOK 215 million in available funds as combined cash and portfolio sale receivables. The efficiency and cost cutting measures have essentially been implemented, reducing marketing and payroll costs. In combination with the uptick in order intake and a more upbeat look on the European consumer’s interest in solar and battery solutions, Otovo is looking to bridge the gap to profitability.
– We’ve cut costs, sold the portfolio and improved margin per project through our new setup for the leasing segment. These things add up, and we are going to move our operational losses into the rearview mirror.
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Please find attached the quarterly report and quarterly presentation. Andreas Thorsheim (CEO) and Petter Ulset (CFO) will present the material at a webcast at 09:00 CET on 06 May, that can be viewed through the following link: https://www.investorweb.no/ir-channel/OTOVO/event/fadae76d-7810-46db-866a-4779e421c591
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Disclosure Regulation
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Metrics used in this notice are defined in the attached financial report.
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About Otovo: For homeowners, Otovo is the easiest way to get solar panels on the roof, and batteries in the home. Otovo is a marketplace that organizes hundreds of local, high quality and qualified energy installers. The company uses its proprietary technology to analyze the potential of any home and finds the best price and installer for customers based on an automatic bidding process between available installers.
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