Techstep ASA: Q2 and H1 2020 results

 Highlights Q2 2020

• Operational progress and stronger results in an extraordinary market environment
• Revenue was NOK 238 million, down from NOK 270 million last year
• Gross profit was NOK 78 million, up from NOK 69 million last year
• EBITDA adjusted was NOK 17 million, up from NOK 6 million last year
• Annual recurring revenue (ARR) of NOK 37 million from 210,000 end-users at the end of the quarter
• Signed three new contracts with an estimated value of NOK 27 million for Techstep’s software-based managed mobility service Flow
• Soft launch of Flow in Sweden late Q2 marks geographical expansion of own software
• Signs of improving market after demand fell during Covid-19 outbreak
• Digital transformation amplified, mobility market fundamentals strengthening

Commenting on the Q2 report, Jens Haviken, CEO of Techstep says “The ongoing pandemic has forced us all to change the way we move, interact and work. At Techstep we took swift action to adapt to the extraordinary situation. Our operations and customer services in the quarter have run well combined with protective measures to safeguard people’s health. The nature of what Techstep does - making work mobile - makes us equipped to deal with a new reality, and our team has shown tremendous commitment in taking care of our customers and partners during the last months”.

Techstep delivered operational progress and stronger results in the second quarter and first half year of 2020. This comes after several years of building Techstep organically and through M&A, consolidation and developing customer offering around Techstep’s own software.

Despite a challenging market environment, it has been an eventful first half of the year with the roll-out of Techstep’s Managed Mobility-Service offering, Flow, in both Norway and Sweden.

“Looking ahead, our pipeline of opportunities is promising. We focus on Flow and solutions sales, operational efficiency and investing in our own software. In addition, we continue pursuing M&A opportunities in order to strengthen our position in the Nordics”, Jens Haviken concludes.

Material

Please find the report and presentation for Q2 and H1 2020 enclosed.

Presentation and audiocast:

Due to the COVID-19 situation and the government’s recommendation to limit physical meetings, the presentation will be held as an audiocast with slideshare only. The presentation will be given in English by CEO Jens Haviken and CFO Marius Drefvelin today at 10:00 am CEST.

Please join the Q2 and H1 2020 results presentation via the following link:

https://techstep.zoom.us/webinar/register/WN_d-i3TLpvSyKgAuA6KyTAaw

A recorded version of the presentation will be made available on www.techstepasa.no shortly after the broadcast has been concluded.

Further information from:

Jens Haviken, CEO, Techstep ASA: +47 930 90 070
Marius Drefvelin, CFO, Techstep ASA: +47 958 95 690

About Techstep ASA

Techstep is purpose-built to become a leading Managed Mobility Services provider in the Nordics. Techstep’s software based Managed Mobility-offering enables enterprises and their employees to do their work across mobile devices and locations, with a high degree of security and operational stability. Techstep has 210 employees based in Norway and Sweden, serving close to 4,000 customers and 210,000 recurring revenue end-users across various industries in the private and public sectors. The company is listed on the Oslo Stock Exchange.

For more information, see www.techstepasa.no.