Clavister: Better-than-expected growth acceleration - ABG

25% organic growth, 13% ARR growth y-o-y
Slightly higher opex offset by better gross margin
Trading at 12-5x EV/EBITDA '24e-'26e


Higher-than-expected growth, 25% organic, 13% ARR y-o-y

Clavister continued on its positive trajectory in Q1. Sales of SEK 44m were 4% above our forecast of SEK 42m, corresponding to 25% organic growth, while adj. EBITDA of SEK 8m was 57% above our forecast of SEK 5m. The stronger sales were driven by positive development in the core firewall and IAM business, which we find encouraging and supportive of a maintained high near-term growth rate. This was further supported by ARR of SEK 124m at the end of the quarter, an increase of 13% y-o-y. EBIT was negative, as expected, at SEK -4m, but better than our forecast of SEK -7m. Slightly higher-than-expected opex was offset by a stronger Q1 gross margin (80% vs. 77% last quarter), explaining around half of the beat on EBITDA, while the rest of the beat stemmed from higher-than-expected sales. Operating cash flow before working capital remained positive for the second straight quarter, although working capital contribution turned negative for SEK -7m in cash flow from operations. Management said that large hardware deliveries weighed on WC in the quarter, but that it should normalise in the coming quarters.

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