Techstep ASA: Q3 2023 results
Highlights from Q3 2023:
Profitability still improving, fourth consecutive quarter with positive EBITA adj.
- Net gross profit margin up from 29% to 33% y/y, due to growth in higher margin software and services business and increasing hardware margins
- Continued decline in operating costs and personnel expenses
Slow commercial momentum, recurring revenue base up 5% y/y
- Recurring revenue annualised up 2% from previous quarter to NOK 306 million, impacted by weaker Hardware-as-a-Service sales
- ARR from Own Software at NOK 111 million, 12% growth y/y
Refinancing secures increased financial flexibility
- Refinanced the company’s term loans and credit facilities with a new banking relationship and converted all remaining seller credits to shares
- Positive cash flow from operations, cash position at NOK 68 million at the end of quarter
On 1 November, Techstep’s Chief Operating Officer, David Landerborn, was appointed interim CEO
- 25 years’ sector experience, with deep understanding of the mobile technology industry
- Held several prominent positions in Techstep and part of the management team since Q4 2022
“As newly appointed interim CEO of Techstep, I am thrilled and honoured to take the lead in this pivotal phase of our journey. Over the years, Techstep has invested in building a strong and leading platform to help customers using and managing mobile technology. We have been through a challenging but important transformation, with the integration of acquired companies and streamlining of the organisation and product portfolio. We have come far, but we are not there yet. Going forward, my focus areas are clear. We need to simplify and improve sales and materialise on the large frame agreements we won earlier this year. Further, we need to continue to optimise the organisation and improve cost efficiency to make the company profitable. Feedback from customers and partners indicate that we have a unique offering, and I believe we have an exciting journey ahead of us”, says David Landerborn, interim CEO of Techstep.
Material
Please find the report and presentation for Q3 2023 enclosed.
Presentation and Q&A:
The management 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 CET 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 session has concluded.
For more information:
David Landerborn, Interim CEO, Techstep ASA: +46 709 48 2642
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 270 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 Cathrine Birkenes, Head of Sustainability & Compliance, Techstep ASA, on 10 November 2023 at 07:00 CET.
