SmartCraft ASA (SMCRT) – Q1 2023: Continued strong growth and positive market outlook
SmartCraft ASA | Half yearly financial reports and audit reports / limited reviews
9 May 2023 - 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 2023, ending the period with annual recurring revenue (ARR) of NOK 347 million, which represents a 12-month growth of 24 percent and a growth of 9 percent compared to the end of 2022.
Reported revenue was NOK 94 million (+19 percent), of which 97 percent was recurring. Adjusted and reported EBITDA margin increased by 2 percentage points to 42 percent. Operating cash flow was NOK 73 million in the first quarter, compared to NOK 59 million in the same period last year. In the first quarter, the group has a consistently low churn of 7 percent.
“SmartCraft continues to deliver stable, strong growth with high margins and solid cash flow. With an entry price as low as NOK 8 per day, our SaaS-based solutions help SMEs in the construction sector improve efficiency, increase revenue, and lower cost. Hence, we provide great value for customers even in a turbulent construction market,” said CEO of SmartCraft Gustav Line.
SmartCraft’s most significant customer groups are within electro and HWS, sectors with solid growth drivers.
“We see that in a turbulent market the SMEs, focusing on refurbishment and service are much more stable than companies primarily working on new construction. The market activity for electro and HWS is expected to continue to be high, supported by EU regulations which will require significant investments in climate improvements of existing buildings. For example, millions of old tubes and lamps must be replaced by modern LED technology. Additionally, stricter requirements related to documentation will drive the need for better software tools. SmartCraft is perfectly positioned to benefit from these trends in the coming years,” said Gustav Line.
In addition to organic growth in existing markets, SmartCraft seeks to continue its strong track record with regard to value accretive acquisitions.
“We are in dialogue with several interesting potential targets in existing and new geographies. With our solid balance sheet, no debt, and cash at hand we are in a favorable position when price expectations come down. At the same time, capital discipline is our top priority,” said Gustav Line.
SmartCraft 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 have delivered consistently on our growth and margin targets since the public listing in 2021, and our ambitions stay firm going forward,” said Gustav Line.
WEBCAST PRESENTATION
Investors, analysts, and journalists are welcome to join an English-language webcast presentation of the report today, Tuesday 9 May 2023, at 08:00 CET.
Webcast link: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20230509_1
Presenters: CEO Gustav Line and CFO 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 https://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.
The stock exchange announcement was published by the contact person, at the date and time as set out above.
Contacts
Gustav Line
CEO
Tel:
Kjartan Bø
CFO
Tel:
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 96% 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.