Today we reported our results for the fourth quarter of 2022, ending the period with annual recurring revenue (ARR) of NOK 318 million, which represents a 12-month growth of 19 percent. Organic growth was 17 percent. Reported revenue was NOK 91 million (+19 percent), of which 96 percent was recurring. Adjusted EBITDA margin increased to 41 percent.
“In Q4 we present another record-breaking quarter and for the 7th quarter in a row we continue to deliver on guided revenue and margin. This shows the strength of our business model and that our solutions have a good market fit even in turbulent times. Our solutions give our customers a competitive edge and are increasingly important when the market is changing and margins are under pressure”, said CEO of SmartCraft Gustav Line.
Even if the construction industry as a whole experiences challenging market conditions, SmartCraft does not see demand abating. The solutions help customers operate efficiently and increase their profits, and with a subscription cost as low as NOK 7 per day/user, SmartCraft is able to keep churn rates very low at 6 percent.
“Our core customer group are SMEs, working mainly with upgrades, renovation and services of existing buildings. Since they are only to a small extent dependent on large new building projects, they are more resilient in turbulent times. Additionally, our largest customer group consists of skilled workers like electricians and plumbers. They experience great demand from different energy saving initiatives. User data from our solutions supports this and indicates that our customers’ project activity grew throughout the fourth quarter, a trend that has continued into 2023” said Gustav Line.
Since SmartCraft became listed on Oslo Børs in June 2021, the number of customers has increased by 33 percent through a mix of organic growth and acquisitions. The company targets an organic growth of 15-20 percent per year in the medium term, and increased margins due to the scalability of the business.
“We remain confident in reaching our targets. The SmartCraft sales model is highly efficient, and we see that the customer acquisition cost has a payback time of only one year, which combined with the low churn and the high incremental cash contribution from new customers means that the return on investments in sales are very attractive. Our profitability and cash generation continues to be high. SmartCraft’s SaaS based business model implies a very high gross margin, and we can clearly observe the scalability of our profit model. With most of our subscriptions being paid up front, the growth comes with a low risk“, said Gustav Line.
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For further queries, please contact:
Gustav Line, CEO
Phone: +47 952 67 104
Kjartan Bø, CFO
Phone: +47 410 27 000