24 August 2023 - SmartCraft ASA, the leading Nordic provider of mission-critical
SaaS solutions to small and mid-sized companies in the construction sector,
today reported its results for the second quarter of 2023, ending the period
with annual recurring revenue (ARR) of NOK 358 million, which represents a 12
-month growth of 21 percent. Organic ARR growth was 15 percent.
Reported revenue in the second quarter was NOK 101 million (+24 percent), of
which 96 percent was recurring. Adjusted EBITDA margin increased by 7 percentage
points to 44 percent, whereas reported EBITDA margin was 43 percent (35%). The
margin increase was driven by the long-term focus to scale the business and to
keep costs at a reasonable level. Operating cash flow was NOK 25 million in the
second quarter, compared to NOK 9 million in the same period last year. For the
first half of 2023 Operating cash flow was 98 million, up 43% compared to the
first half of 2022. In the second quarter, the group had a stable low churn of 7
percent.
"We provide mission critical SaaS-based solutions that help small and medium
sized construction companies generate more revenue and reduce cost. Hence, we
are able to continue to grow rapidly, produce very high margins and strong cash
flow even though the general construction market is soft, and we believe our
solutions are even more mission critical in uncertain times," said CEO of
SmartCraft Gustav Line.
SmartCraft continues to focus on consolidating the construction software
industry through bolt-on acquisitions in the Nordics. In July 2023, the company
announced the acquisition of Coredination AB, a Swedish SaaS solution for
construction companies with complementary technology and solutions to
SmartCraft's existing portfolio.
"This was our tenth acquisition, and we are happy to conclude that all of them
have been successful, adding significant growth after the acquisition. We have a
strong balance sheet and will continue to search for attractive acquisition
objects in the industry, while always being prudent and maintaining capital
discipline," said Gustav Line.
SmartCraft operates in an underpenetrated market where most companies need to
make a shift to a more digital way of running the business. Additionally, the
market experiences strong underlying trends driven by energy efficiency measures
and increased documentation requirements for craftsmen.
"Most of our customers primarily work with refurbishment and service, not new
construction. Hence, our exposure to any slowdown in the general construction
market is limited. On the contrary, our systematic sales and marketing efforts
have produced strong results during the first half. With a good first half of
2023 and a solid revenue pipeline going into the autumn we have a positive
outlook on the future and reiterate our medium-term guiding of 15-20 percent
organic growth and growing margins due to the scalability of the business," said
Gustav Line.
WEBCAST PRESENTATION
Investors, analysts, and journalists are welcome to join an English
-language webcast presentation of the report today, Thursday 24 August 2023, at
08:00 CET.
Webcast link:
https://channel.royalcast.com/landingpage/hegnarmedia/20230824_2/
Presenters: CEO Gustav Line, CFO Kjartan Bø, CMO Katja Widlund and CTO Christian
Saleki.
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://smartcraft.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.com
* Kjartan Bø, CFO, +47 410 27 000, kjartan.bo@smartcraft.com
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 97% 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.