25.8.2022 07:00:02 CEST | SmartCraft ASA | Half yearly financial reports and
audit reports / limited reviews
25 August 2022 - SmartCraft ASA today reported its results for the second
quarter of 2022, ending the period with annual recurring revenue (ARR) of NOK
296.1 million, which represents a 12-month growth of 32 percent. Organic growth
was 20% compared to Q2 2021. Revenue in Q2 2022 was 81.6 million (+27.6% Y/Y),
of which 96 percent was recurring.
"We are pleased to report continued strong growth in our recurring revenue, and
we have once again delivered well on our strategy to drive growth through both
organic initiatives and acquisitions. The organic growth in annual recurring
revenue was 20 percent in the second quarter, driven not only by good results in
terms of new-sale and up-sale, but also a low revenue churn at an annual rate of
5 percent," said Gustav Line, CEO of SmartCraft.
SmartCraft's adjusted EBITDA margin was 36.2 percent in Q2, which can be
compared with 47.1% in Q2 2021. A change in accounting principle related to
holiday pay accruals distorts the comparison figures. If the current principle
was applied for 2021, the Q1 2021 EBITDA margin would have been 43.7%. Margins
were affected by phasing of marketing investments, and a dilution effect as a
result of acquisitions as well as investments in certain temporary costs related
to recruitment and personnel changes to optimize and synergize the organization
for future scale and growth.
"We have decided to invest for future revenue growth and initiatives to scale
the organization and our products. Without these one-time investments and
initiatives, the adjusted EBITDA margin is well above 40% and in line with
previous year."
SmartCraft is a leading Nordic provider of mission-critical SaaS solutions to
small and mid-sized companies in the construction sector, a market with a
potential of above NOK 10 billion, growing annually at a double-digit rate.
"The construction industry is one of the least digital, and in SmartCraft we go
to work every morning with a desire to help craftsmen and contractors to
streamline their workday so that they can spend time on productive work - and
not the least help them avoid paperwork during evenings and weekends. The
momentum in the market is strong, and we expect it to remain solid even if the
macro environment becomes more uncertain. The daily cost for a SmartCraft client
is very low, so we create great customer value from day one," said Gustav Line.
SmartCraft targets 15-20 percent annual revenue growth in the medium term, with
the addition of bolt-on acquisitions. Margins are expected to increase due to
scalability of the business.
"Our momentum is strong in a market with high potential, and with close to 100
percent recurring revenue we have long visibility in terms of our financial
development. We are confident in achieving our medium-term targets. Our primary
focus is organic growth in the Nordics through upselling to existing customers,
by winning new customers, and by cross-selling on our customer bases. Secondly,
we continue our successful M&A strategy, seeking opportunities both in existing
and new geographies. We are currently in dialogue with several companies," said
Gustav Line.
WEBCAST PRESENTATION
Investors, analysts and journalists are welcome to join to an English language
webcast presentation of the report today, Thursday 25 August 2022, at 09:30 CET.
Webcast link: https://channel.royalcast.com/landingpage/hegnarmedia/20220524_1/
Presenters: CEO Gustav Line, CFO Kjartan Bø, CTO Christian Saleki and CEO of
Bygglet Hanna Konyi
Viewers are welcome to submit written questions through the webcast player
during and after the presentation. A recording of the presentation will be
available on the same link and at
https://smartcraftready.com/investor-relations/ after the live stream is
concluded.
DISCLOSURE REGULATION
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation, and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act.
The stock exchange announcement was published by the contact person, at the date
and time as set out above.
CONTACTS
* Gustav Line, CEO, +47 952 67 104, gustav.line@smartcraft.no
* Kjartan Bø, CFO, +47 410 27 000, kjartan.bo@smartcraft.no
ABOUT SMARTCRAFT ASA
SmartCraft is the leading Nordic provider of mission-critical SaaS solutions to
SME's in the construction sector. The company's business model is highly
scalable, based on 95% recurring revenue and low churn. The construction sector
is among the least digitalized industries and represents a NOK 10bn software
market in the Nordics, growing at a double-digit rate. SmartCraft's solutions
help customers to increase their productivity, margins, and resource efficiency.
ATTACHMENTS
SmartCraft ASA Q2 and first half year 2022 report.pdf -
https://kommunikasjon.ntb.no/ir-files/17847761/1692/2268/SmartCraft%20ASA%20Q2%2
0and%20first%20half%20year%202022%20report.pdf
SmartCraft ASA Q2 and first half year 2022 presentation.pdf -
https://kommunikasjon.ntb.no/ir-files/17847761/1692/2271/SmartCraft%20ASA%20Q2%2
0and%20first%20half%20year%202022%20presentation.pdf