SmartCraft ASA (SMCRT) – Q1 2024: Continued growth with high margins and strong cash flow
7 May 2024 – 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 first quarter of 2024, ending the period with annual recurring revenue (ARR) of NOK 401 million, which represents a growth of 16 percent compared to the same period in 2023. Organic ARR growth was 12 percent.
Reported revenue in the first quarter was NOK 110 million (+16 percent), of which 97 percent was recurring. Adjusted and reported EBITDA-capex margin increased by 2 percentage points to 33 percent. Operating cash flow was NOK 74 million in the first quarter, compared to NOK 73 million in the same period last year. In the first quarter the group had a stable churn of 7 percent compared to the previous quarter.
“SmartCraft’s strategy focuses on both organic growth and continued consolidation and value accretive M&A, and so far in 2024 we have advanced significantly on both fronts. Organic growth in annual recurring revenue (ARR) was 12 percent in the first quarter, and we were very pleased to announce the acquisitions of Clixifix in the UK and Locka in Sweden early in the second quarter. Including the acquisitions in Q1, our ARR would have increased by 31 percent to NOK 456 million. Additionally, we would have added ~ 600 new customers, reaching a total of 13 300 at the end of Q1”, said CEO of SmartCraft Gustav Line.
SmartCraft’s positive development comes in a challenging market for the construction industry.
“Despite the sluggish market conditions for the construction industry, we are able to achieve good growth. We primarily focus on small and medium-sized enterprises which mainly work within the renovation segment. This segment is larger than the new build part of the industry and has proven to be much less volatile and growing. The key is to demonstrate how our solutions help customers boost their efficiency and income. Given the current market conditions, this is more important than ever. We remain confident in our medium-term financial target of 15-20 percent organic growth and increasing margins due to the scalability of the business”, said Gustav Line.
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WEBCAST PRESENTATION
Investors, analysts, and journalists are welcome to join an English-language webcast presentation of the report today, Tuesday 7 May 2024, at 08:00 CET.
Webcast link:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20240507_6
Presenters: CEO Gustav Line and CFO Kjartan Bø
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/ immediately 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.
CONTACTS
* Gustav Line, CEO, +47 952 67 104, [email protected]
* Kjartan Bø, CFO, +47 410 27 000, [email protected]
ABOUT SMARCRAFT
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 97% 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.
