SmartCraft ASA (SMCRT) – Q4 2022: Another record-breaking quarter and solid market outlook
SmartCraft ASA | Half yearly financial reports and audit reports / limited reviews
15 February 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 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.
WEBCAST PRESENTATION
Investors, analysts and journalists are welcome to join to an English language webcast presentation of the report today, Wednesday 15 February 2023, at 08:00 CET.
Webcast link:
https://channel.royalcast.com/landingpage/hegnarmedia/20230215_1/
Presenters: CEO Gustav Line, CFO Kjartan Bø, and CMO Katja Widlund
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:+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.