Q1 2024: Continued growth with high margins and strong cash flow

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 2024, ending the period with annual recurring revenue (ARR) of NOK 401 million, which represents a growth of 16 percent compared to the same period in 2023. Organic ARR growth was 12 percent.

Reported revenue in the first quarter was NOK 110 million (+16 percent), of which 97 percent was recurring. Adjusted and reported EBITDA-capex margin increased by 2 percentage points to 33 percent. Operating cash flow was NOK 74 million in the first quarter, compared to NOK 73 million in the same period last year. In the first quarter the group had a stable churn of 7 percent compared to the previous quarter.

“SmartCraft’s strategy focuses on both organic growth and continued consolidation and value accretive M&A, and so far in 2024 we have advanced significantly on both fronts. Organic growth in annual recurring revenue (ARR) was 12 percent in the first quarter, and we were very pleased to announce the acquisitions of Clixifix in the UK and Locka in Sweden early in the second quarter. Including the acquisitions in Q1, our ARR would have increased by 31 percent to NOK 456 million. Additionally, we would have added ~ 600 new customers, reaching a total of 13 300 at the end of Q1”, said CEO of SmartCraft Gustav Line.

SmartCraft’s positive development comes in a challenging market for the construction industry.

“Despite the sluggish market conditions for the construction industry, we are able to achieve good growth. We primarily focus on small and medium-sized enterprises which mainly work within the renovation segment. This segment is larger than the new build part of the industry and has proven to be much less volatile and growing. The key is to demonstrate how our solutions help customers boost their efficiency and income. Given the current market conditions, this is more important than ever. We remain confident in our medium-term financial target of 15-20 percent organic growth and increasing margins due to the scalability of the business”, said Gustav Line.

Visit Reports and presentations to see the full report, presentation and webcast.

For further queries, please contact:
Gustav Line, CEO
Phone: +47 952 67 104

Kjartan Bø, CFO
Phone: +47 410 27 000

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