Techstep ASA: Q2 and H1 2022 results

Highlights from the second quarter:

Techstep strengthening its position in a growing global managed mobility market

• Recognised as a global challenger by Gartner in a market with double digit growth
• Techstep last twelve months revenues of NOK 1.3 billion and record recurring revenues highlights position

Financials reflect transformation phase, with recurring revenues at record level in line with software, recurring services, and M&A focused growth strategy 

• Total revenue of NOK 317.2 million (324.7), gross profit of NOK 111.9 million (113.9) and adjusted EBITDA of 12.2 million (13.3)
• Recurring revenue annualised of NOK 281 million of which Own software ARR of NOK 101 million with 90% gross margin
• In addition, NOK 10 million from recent software wins, not yet included in ARR

Strong commercial momentum

• 11 new Managed Mobility Services (MMS) contracts in Q2 adding NOK 14 million in contract value and NOK 9 million in annualised recurring revenue expected to be delivered over the coming quarters
• Growing with existing and new clients, second quarter wins include Equinor and Bane Nor

Continued transformation to unlock profitable MMS growth at scale

• Simplification and standardisation of product portfolio and solutions
• Aligning organisation around simplified offering to accelerate growth
• Streamlining cost base to improve profitability

“In Q2, our underlying factors continued to develop in the right direction with improved sales bookings, improved customer implementation speed, and increased share of software and recurring revenue. Also, we delivered record recurring revenues from Own Software, Advisory & Services and Hardware-as-a-Service. This is in line with our growth strategy focused on software, recurring services, and M&A”, said Techstep CEO Børge Astrup.

“We have a sharp focus on simplifying the company and creating one Techstep. Over the years we have acquired and combined multiple companies, resulting in many different products and solutions. To strengthen the commercial momentum, we have reorganised the company to bring our simplified and standardised product portfolios to our customers in a better way, improving value creation for customers and Techstep. Performance management in the organisation is now closely linked to customer success, recurring services, and revenue growth, and ultimately Techstep’s value creation and profitability. Going forward, continued standardisation, and streamlining of all parts of Techstep will be key for us to be able to scale and deliver on our ambitions”, Astrup concluded .

Material

Please find the report and presentation for Q2 and H1 2022 enclosed.

Presentation and Q&A:

CEO Børge Astrup and CFO Anita Huun presents the results in a pre-recorded webcast, available from this link: https://youtu.be/jEoyvf_I1v0

A live Q&A session will take place today at 8:00 am CEST and can be accessed via the following link: https://bit.ly/3QhpDdF 

Questions for the Q&A session may be submitted in advance to ir@techstep.no, or live during the session itself. A recording of the Q&A-session will be made available on techstep.io after the live event has concluded.

For more information:

Børge Astrup, CEO, Techstep ASA: +47 928 27 676

Anita Huun, CFO, Techstep ASA: +47 924 11 563

Erik Haugen, Chief Transformation Officer, Techstep ASA: +47 967 90 101

About Techstep ASA

Techstep is a complete mobile technology enabler, making positive changes to the world of work; freeing people to work more effectively, securely and sustainably. We help customers who want to work smarter, while also delivering on their ESG commitments. With more than 350 employees based in Norway, Sweden, Denmark and Poland, we serve more than 2 000 enterprise customers in Europe. Techstep had NOK 1.3 billion in full year 2021 revenues, and is listed on the Oslo Stock Exchange under the ticker TECH. To learn more, please visit techstep.io/investor.

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. This stock exchange announcement was published by Cathrine Birkenes, Head of Sustainability and Compliance, Techstep ASA, on 19 August 2022 at 07:00 CEST.