Techstep ASA: Q1 2023 results

Highlights from the first quarter:

Increasing recurring revenue base with 15% growth y/y and 3% growth sequentially

• Total revenue of NOK 292 million, down 16% y/y due to decline in Hardware sales
• Recurring revenue annualised of NOK 312 million, up from NOK 271 million in Q1 last year
• ARR from Own Software at NOK 113 million, up 14% y/y

Profitability improving, second consecutive quarter with positive EBITA adj.

• Net gross profit margin up from 27% to 31% y/y due to growth in higher margin software business and advisory & services business
• Profitable on EBITA adj. of NOK 4.1 million due to a 18% y/y decline in operating costs and personnel expenses

Stable commercial momentum and new solutions added to the SmartControl portfolio

• Re-awarded a frame agreement with Sykehusinnkjøp HF worth NOK 650 million, a potential doubling of previous contract value
• Launched two new Managed Services solutions in the SmartControl portfolio, resulting in two larger contracts with a combined total contract value of NOK 2.1 million recurring revenue per year
• High tender activity and growing interest from the public sector, for private sector the conversion to sales is slower than anticipated

“First quarter showed positive development in our underlying business, with growth in recurring revenue and improving profitability, but we are not yet where we want to be. We see growing interest in Techstep’s products, both from the private and public sector, but conversion to actual sales has been slower than anticipated in the quarter. We are addressing this with stronger focus on sales execution, upcoming product launches and continuous improvement of our processes and go-to-market approach. In addition, the work with streamlining the organisation and optimising the cost base continues. Things are developing in the right direction, and with some patience I am confident that we will succeed with the transformation of Techstep into a profitable software-led, recurring services company and translate this into a commercial success”, says CEO Børge Astrup.

Material

Please find the report and presentation for Q1 2023 enclosed.

Presentation and Q&A:

CEO Børge Astrup and CFO Ellen Solum presents the results in a pre-recorded webcast, can be accessed by clicking here

A live Q&A session will take place today at 8:00 am CEST and can be accessed by clicking here

Questions for the Q&A session may be submitted in advance to [email protected], 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

Ellen Solum, CFO, Techstep ASA: +47 976 66 717

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 around 300 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 2022 revenues, and is listed on the Oslo Stock Exchange under the ticker TECH. To learn more, please visit www.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 Marie Christophersen, Financial Analyst / Investor Relations, Techstep ASA, on 16 May 2023 at 07:00 CEST.