Techstep ASA: Q1 2024 results
Highlights from Q1 2024:
Positive EBITA adj. for the sixth consecutive quarter
- Net gross profit impacted by lower device volumes, margin up from 32% to 34% y/y due to positive momentum in high margin revenues
- Continually delivering on the cost optimisation plan
Weak commercial quarter, impacted by early Easter-effect
- Flat development in recurring revenue annualised y/y, decline in device sales partly offset by growth in Own Software and Advisory & Services
- Strong uptake in March on device orders, but majority of the shipment slipped into April
Refocused commercial strategy, increasing focus on partner sales
- Launched a new Go-to-Market strategy and deployed a revised indirect business model for partner ready and highly scalable solutions
- Signed transformative strategic partnership agreement with devicenow
Subsequent events
- Expanding rugged device and services business through strategic partnership with Consafe Logistics
- Recently signed agreement with a Nordic mobile operator covering Own Software and managed services
“The profitability keeps moving in the right direction, and for the sixth consecutive quarter we delivered a positive EBITA adjusted. Our net gross profit margin improved from 32% to 34% year over year, and despite Q1 being impacted by the decline in device sales, we are already observing a strong uptick compared to previous months. Additionally, signing several new partner agreements in recent months, we see a substantial potential through our indirect business model and anticipate accelerated growth, particularly in the second half of this year.
I have strong belief in mobile tech being a cornerstone of the digital transformation and acceleration we see around us every day, with improved connectivity, AI powered endpoints, Generation Z expectations to mobility and flexibility, the need to increase productivity and how mobile applications foster new business models, and I see Techstep perfectly positioned to make mobile technology work and create value in this exciting mobile first era!”, says Morten Meier, CEO of Techstep.
Material
Please find the report and presentation for Q1 2024 enclosed.
Presentation and Q&A:
A live presentation and Q&A session will take place today at 8:00 am CEST and can be accessed by clicking and registering using the following link: https://events.teams.microsoft.com/event/6feff1ab-e99b-45a7-a077-52df400f02cd@56b3dd67-66b5-4d6a-9954-22469dfcf18b
The registration link is also available under the investor section on Techstep’s homepage, which can be accessed 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 www.techstep.io after the session has concluded.
For more information:
Morten Meier, CEO, Techstep ASA: +47 970 57 717
Ellen Solum, CFO, Techstep ASA: +47 976 66 717
About Techstep
Techstep is a mobile technology company, enabling organisations to perform smartly, securely, and sustainably by combining mobile devices, software and expertise to meet customers’ business and ESG goals. We are a leading provider of managed mobility services in Europe, serving more than 2,100 customers in Europe with an annual revenue of NOK 1.1 billion in 2023. The company is listed on the Oslo Stock Exchange under the ticker TECH. To learn more, please visit www.techstep.io.
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 the Norwegian Securities Trading Act. This stock exchange release was published by Cathrine Birkenes, Head of Sustainability and Compliance, Techstep ASA, on 15 May 2024 at 07:00 CEST.
