13 February 2025 - 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 fourth quarter of 2024, with a year
-on-year ARR growth of 25 percent to NOK 482 million, positively affected by
acquisitions. The organic revenue growth of NOK 8.2 percent was lower than
anticipated as a result of soft macroeconomic development towards the end of the
quarter 2024.
Fourth quarter revenue was NOK 136 million, a growth of 27 percent.
Adjusted EBITDA-capex was NOK 33 million in the fourth quarter, representing a
margin of 24 percent down from 31 percent in the same period in 2023. The margin
decline was a result of dilution by the acquisitions of Locka and Clixifix in
the second quarter and increased investments related to the development of the
disruptive solution for electricians, SmartCraft Spark, launched as a basic
version in late 2024. Adjusted for these factors, the EBITDA-capex margin would
be 32 percent, one percentage point higher than in the same period in 2023.
The operational cash flow in the fourth quarter was NOK 48.2 million, up from
31.5 million in the corresponding period in 2023.
"Many of our customers in the construction industry are facing the most
challenging market conditions in decades. For us in SmartCraft, it is important
to balance long-term growth initiatives with short-term optimization and
profitability. While we keep very tight control of our operating expenses, we
have chosen to invest in the SmartCraft Spark solution for electricians. With an
increasingly joint tech stack across our solutions, we reduce complexity in
development, unite our sales and marketing resources and make it easier to price
optimize and upsell to existing customers," said CEO of SmartCraft Gustav Line.
SmartCraft continues to push for conversion of one-off revenue models to
recurring revenues in the recently acquired businesses Locka and Clixifix. This
has a negative effect on revenue and EBITDA in the short term but will create
significant value in the longer term. As an example, Locka produced negative
EBITDA in the fourth quarter, but saw a very solid ARR development, with a 42%
annualized growth.
"Our sales engine works well even in a sluggish market. The gross number of new
customers was 11 percent higher in the fourth quarter than in the same period in
2023, and 30 percent higher than in the third quarter 2024. In total, not
including the recent acquisitions, the number of new customers added was the
highest since the beginning of 2022. While new sales are very strong, this was
currently offset by increased churn and downgrades driven by the macroeconomic
environment," said Gustav Line.
While many businesses in the construction industry are reluctant to implement
new software solutions during a challenging macroeconomic period, the potential
for digitalization remains massive.
"We are enthusiastic about the opportunities and potential we see in this
underpenetrated market. The timing of a macroeconomic recovery, however, remains
uncertain, but forecasts for the construction industry indicates that a pick-up
might start materializing in the second half of 2025. When the pickup eventually
comes, we expect customer churn to decrease, customers to start upscaling their
use of our tools, and organic growth to return to a higher level. Hence, we are
well positioned to deliver on our medium-term financial targets of 15-20 percent
organic growth with increasing margins," said Gustav Line.
The fourth quarter 2024 report and presentation materials are enclosed.
- ENDS -
WEBCAST PRESENTATION
Investors, analysts, and journalists are welcome to join to an English language
webcast presentation of the report on the same day, Thursday 13 February 2024,
at 08:00 CET.
Webcast link:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20250213_3
Presenters:
· Chief Executive Officer Gustav Line
· Chief Financial Officer Kjartan Bø
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 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.
CONTACTS
* Gustav Line, CEO, +47 952 67 104, gustav.line@smartcraft.com
* Kjartan Bø, CFO, +47 410 27 000, kjartan.bo@smartcraft.com
ABOUT SMARCRAFT
SmartCraft is the leading Nordic provider of mission-critical SaaS solutions
to SMEs in the construction sector, increasing their productivity, margins,
and resource efficiency. The Group currently has more than 13 400 customers and
260 employees distributed across Norway, Sweden, Finland and UK. SmartCraft
was listed on the Oslo Stock Exchange in June 2021.