Correction: SmartCraft ASA (SMCRT) – First half and second quarter 2022 financial results
SmartCraft ASA | Half yearly financial reports and audit reports / limited reviews
25 August 2022 - The correction is only related to the Statement by the Board of Directors and Chief Executive Officer that was not included in the first published version.
SmartCraft ASA today reported its results for the second quarter of 2022, ending the period with annual recurring revenue (ARR) of NOK 296.1 million, which represents a 12-month growth of 32 percent. Organic growth was 20% compared to Q2 2021. Revenue in Q2 2022 was 81.6 million (+27.6% Y/Y), of which 96 percent was recurring.
“We are pleased to report continued strong growth in our recurring revenue, and we have once again delivered well on our strategy to drive growth through both organic initiatives and acquisitions. The organic growth in annual recurring revenue was 20 percent in the second quarter, driven not only by good results in terms of new-sale and up-sale, but also a low revenue churn at an annual rate of 5 percent,” said Gustav Line, CEO of SmartCraft.
SmartCraft's adjusted EBITDA margin was 36.2 percent in Q2, which can be compared with 47.1% in Q2 2021. A change in accounting principle related to holiday pay accruals distorts the comparison figures. If the current principle was applied for 2021, the Q2 2021 EBITDA margin would have been 43.7%. Margins were affected by phasing of marketing investments, and a dilution effect as a result of acquisitions as well as investments in certain temporary costs related to recruitment and personnel changes to optimize and synergize the organization for future scale and growth.
“We have decided to invest for future revenue growth and initiatives to scale the organization and our products. Without these one-time investments and initiatives, the adjusted EBITDA margin is well above 40% and in line with previous year.”
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 construction industry is one of the least digital, and in SmartCraft we go to work every morning with a desire to help craftsmen and contractors to streamline their workday so that they can spend time on productive work – and not the least help them avoid paperwork during evenings and weekends. The momentum in the market is strong, and we expect it to remain solid even if the macro environment becomes more uncertain. The daily cost for a SmartCraft client is very low, so we create great customer value from day one,” 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.
“Our momentum is strong in a market with high potential, and with close to 100 percent recurring revenue we have long visibility in terms of our financial development. We are confident in achieving our medium-term targets. Our primary focus is organic growth in the Nordics through upselling to existing customers, by winning new customers, and by cross-selling on our customer bases. Secondly, we continue our successful M&A strategy, seeking opportunities both in existing and new geographies. We are currently in dialogue with several companies,” said Gustav Line.
Corrected version of the company’s Interim report follows enclosed and are available on the company web site.
WEBCAST PRESENTATION
Investors, analysts and journalists are welcome to join to an English language webcast presentation of the report today, Thursday 25 August 2022, at 09:30 CET.
Webcast link: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220825_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
Tel: +47 952 67 104
Kjartan Bø
CFO
Tel: +47 410 27 000
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.