Techstep ASA: Q2 2023 results

Highlights from the second quarter:

Profitability improving, third consecutive quarter with positive EBITA adj. of NOK 2.3 million

• 7% net gross profit growth y/y to NOK 95 million in a declining HW market
• Net gross profit margin up from 28% to 33% y/y due to growth in higher margin software business and Advisory & Services business
• 11% y/y decline in operating costs and personnel expenses

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

• Recurring revenue annualised continues to grow, reaching NOK 318 million, up from NOK 276 million in Q2 last year
• ARR from Own Software at NOK 110 million, growing by 15% y/y

Positive commercial momentum, growing interest for Advisory & Services and Own Software

• Signed a frame agreement with Oslo Municipality worth NOK 480 million, a potential doubling of previous contract value
• Increased sales activity towards the end of the quarter, with financial effect from H2 2023

Subsequent events

Refinancing secures increased financial flexibility

• Signed term sheet with a new bank relation for the refinancing of the company’s term loans and credit facilities
• Converted all remaining sellers’ credits to shares

“The ongoing transformation is starting to yield results. Profitability is improving, with growth in net gross profit and positive EBITA adj. for the third consecutive quarter. We see a positive commercial development and growth in recurring revenue. We expect the increased sales activity to materialise from the second half this year,” says CEO Børge Astrup.

Material

Please find the report and presentation for Q2 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 18 August 2023 at 07:00 CEST.