SmartCraft ASA (SMCRT) – Third quarter 2022 financial results

1.11.2022 07:00:01 CET | SmartCraft ASA | Half yearly financial reports and
audit reports / limited reviews

1 November 2022 - SmartCraft ASA today reported its results for the third
quarter of 2022, ending the period with annual recurring revenue (ARR) of NOK
303.6 million, which represents a 12-month growth of 17 percent. Organic growth
was 16 percent compared to the third quarter 2021. Revenue in the third quarter
2022 was 82.4 million (+16 percent organic growth), of which 97 percent was
recurring. Adjusted EBITDA was 38.8 percent in the quarter an improvement from
36.7 percent in the same period in 2021.

"SmartCraft continues to deliver on our strategy of profitable organic growth
and accretive bolt-on acquisitions. I am particularly satisfied with the strong
operating margin and high cash flow in the third quarter, providing evidence of
the scalability and strength of our business model," said Gustav Line, CEO of
SmartCraft.

SmartCraft continues to move customers over to SaaS based subscription
contracts, leading to 97 percent recurring revenue share in the third quarter.
The recurring revenue growth was 19 percent in the third quarter compared to the
third quarter 2021. Annualized churn remained low, at 5 percent.

"We are extremely focused on customer satisfaction and ease of use for our
customers. This is key to drive new sales and to reduce churn even further,"
said Gustav Line.

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 market for our solutions remains strong, and the demand for digitalization
remains strong despite a gloomy macro picture and rising concerns around
slowdown in the construction industry. Our customers are mainly small and medium
sized enterprises, and this segment is historically less affected by economic
slowdown. With almost all our revenue being recurring, we have long visibility
in terms of financial development. Furthermore, 19% growth in transactional
revenue in the quarter shows that our customers are performing well," said
Gustav Line.

SmartCraft's ambition is to drive consolidation with regards to software for the
Nordic construction industry. Right after the end of the third quarter, the
acquisition of Inprog was announced, adding NOK 5 million of ARR (this is not
included in the 303,6 MNOK ARR at quarter end).

"Inprog is a great addition to our portfolio of services for electricians. We
are now working on capturing synergies from the different solutions under our
umbrella, and we expect to see further benefits in terms of product features and
profitability going forward. Our search for attractive M&A objects continues,
and we have several prospects for accretive acquisitions in sight," 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.

 

WEBCAST PRESENTATION

Investors, analysts and journalists are welcome to join to an English language
webcast presentation of the report today, Tuesday 1 November 2022, at 08:00 CET.

Webcast link: 
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20221101_2 

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.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 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 Q3 2022 Report.pdf -
https://kommunikasjon.ntb.no/ir-files/17847761/1850/2506/SmartCraft%20ASA%20Q3%2
02022%20Report.pdf

SmartCraft ASA Q3 2022 Presentation.pdf -
https://kommunikasjon.ntb.no/ir-files/17847761/1850/2507/SmartCraft%20ASA%20Q3%2
02022%20Presentation.pdf

en_SmartCraft ASA Q3 2022 Report

en_SmartCraft ASA Q3 2022 Presentation