7 May 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 first quarter of 2025, with a year-on-year
ARR growth of 23 percent to NOK 494 million, positively affected by
acquisitions.
The organic revenue growth of NOK 6.3 percent was negatively affected by the
soft macroeconomic development leading to customer revenue churn increasing to
9.3 percent driven by bankruptcies, and downgrades driven by reduced activity
among existing customers. New sales continued to perform well.
First quarter revenue was NOK 137 million, a growth of 25 percent. Adjusted
EBITDA-capex was NOK 37 million, representing a margin of 27 percent, down from
33 percent in the same period in 2024. The margin decline is explained by a
dilution of 4.5 percentage points from the Clixifix and Locka acquisitions, and
the SmartCraft Spark platform development project, which curbs the margin with
1.9 percentage points. The margin increased by 3 percentage points compared to
Q4 2024.
"In the most challenging market for the construction industry in decades,
SmartCraft continues to deliver well on what we can control, namely our sales
activity and cost consciousness. Gross growth in new customers grew 16 percent
in the first quarter compared to the same period last year. This means that we
continue to deliver growth in, albeit at a lower rate than our ambition, and
strong margins," said CEO of SmartCraft Gustav Line.
The potential for digitalization of the construction industry remains massive,
with a high share of companies still not using software solutions tailored to
their industry.
"As for most industries today, the timing of the macroeconomic recovery remains
uncertain. However, when the market eventually comes back, we are tuned for a
massive pickup as we expect customer churn to decrease, customers to start
upscaling their use of our tools, and organic growth to return to a higher
level. With our scalable business model, this will also drive profit margins
upwards. We are still in an excellent position to deliver on our medium-term
financial targets of 15-20 percent organic growth with increasing margins," said
Gustav Line.
The first quarter 2025 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, Wednesday 7 May 2025, at
08:00 CET.
Webcast link:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20250507_7
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 270
employees distributed across Norway, Sweden, Finland and UK. SmartCraft was
listed on the Oslo Stock Exchange in June 2021.