Clavister: Another step in the right direction - ABG

A solid 9% organic growth and lower opex in Q1
We raise EBITDA by SEK 2m and SEK 4m on '23e-'24e
Share trading at 29x-13x EV/EBITDA on '23e-'25e


Growth continues to accelerate, and costs decline

Clavister delivered sales of SEK 36m in Q1, with 9% organic growth (+6% vs. ABGSCe). Adj. EBITDA increased from SEK -5.4m in Q1'22 to SEK 2.0m in Q1'23 (vs. ABGSCe of SEK 1.0m) due to higher sales and a continued opex reduction, which was higher than expected in Q1, driven by full-time employees dropping to 93 at the end of Q1 vs. 108 in Q4'22 and 133 in Q1'22. Cash flow from operations (before WC) improved to SEK -2m, vs. SEK -6m in Q1'22. We expect no further reduction in opex, but with a significantly lower opex base now and growing sales, we think the company is well-positioned to continue improving profitability sequentially and reach sustainable levels during 2024e. Moreover, it started to report ARR (annual recurring revenue) this quarter. ARR was SEK 109m, up 16% y-o-y and 4% q-o-q. As the company has migrated from a perpetual licence model to subscription services, ARR should be a better metric for understanding the underlying growth in contract values and should be viewed as a leading indicator of sales for the coming 12 months (more so than orders).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/clavister/Equity-research/2023/5/clavister---another-step-in-the-right-direction/