Carasent Ab · OMXSTO:CARA
Carasent Ab — Q4 2023 Earnings Presentation
16 slides from Carasent Ab's earnings presentation, Feb 15, 2024
Slide 1: Interim report Q4
Interim report Q4 15 February 2024 Driving efficiency and quality in the world of care
Slide 2: Agenda
Agenda Todays presenters 1 Highlights Q4 2 Company update 3 Financial update Daniel Öhman Svein Martin Bjørnstad CEO CFO
Slide 3: Q4 2023 Summary
Q4 2023 Summary 1 2 Revenue growth of Organic growth in recurring revenues of 15% YoY 13% YoY 3 4 Signed agreement with Cash dividend of NOK 133 Volvat for Metodika million in Q4, total distribution of NOK 250 million in 2023 5 New financial targets
Slide 4: Track record of growth
Track record of growth 4 Adj. EBITDA margin Adj. EBITDAC margin1 ✓ LTM revenue 65 63 ✓ ✓ 60 57 56 ✓ 47 47 45 ✓ 40 37 32 28 20 17 18 16 31% 40% 36% 28% 27% 23% 33% 15% 35% 36% 34% 9% 10% 31% 13% 8% 8% 20% 14% 6% 9% 9% 7% -7% -10% -12% -12% -18% -13% -18% -28% -30% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
Slide 5: Actions taken to address growth issues
Actions taken to address growth issues 5 Too rapid growth – status YE 2022 Actions taken in 2023 ▪ Carasent had during a short period of time grown very rapidly Improving efficiency – Cost savings program of NOK 40m ▪ Multiple acquisitions Prioritization – strategic review of all opportunities. ▪ La
Slide 6: Sale of Confrere assets in Q1 2024
Sale of Confrere assets in Q1 2024 6 Transaction details Rationale ▪ Carasent acquired the customer contracts and the Reduced complexity brand Confrere from Confrere 4 AS in August 2022 Transaction highlights ▪ On 5 February Carasent sold the Confrere brand and customer contracts to Compodium Intern
Slide 7: Financial performance FY 2023
Financial performance FY 2023 7 Cost reductions completed in Q2, impacting FY figures Webdoc Norway discontinued in Q2 2023 Operations HPI, Ad Opus, FY 2023 (NOKm) (excl. HPI, Ad Opus, WDX HQ Group Confrere Confrere) Total revenues 205 39 0.2 - 244 Share of revenue 84 % 16 % 0% nm 100 % Organic grow
Slide 8: Financial performance Q4 2023
Financial performance Q4 2023 8 Growth rates of operations impacted by low consulting revenues, recurring revenue growth is stable Ambition is to keep cost base relatively flat and accelerate growth for the group Operations HPI, Ad Opus, FY 2023 (NOKm) (excl. HPI, Ad Opus, WDX HQ Group Confrere Conf
Slide 9: Journey Ahead and Q4 Highlights
Journey Ahead and Q4 Highlights 9 • 13% organic growth in ARR in Q4 Strong organic • Signed agreement with Volvat New sales model with digital marketing, new webpages, CRM and new growth • renumeration model Efficient use of • Continuous efficiency gains through targeted reductions Optimize operatin
Slide 10: Financial update Q4 2023
Carasent Capital Market Day 2023 Financial update Q4 2023
Slide 11: Carasent – Q4 financial highlights
Carasent – Q4 financial highlights 11 65 13% 10% Million revenue Organic growth recurring EBITDA margin Q4 2023 revenues 239 108% -13% Million ARR per Net retention EBITDA – capex margin YE 2023 rate
Slide 12: 15% growth driven by recurring revenues
15% growth driven by recurring revenues 12 Revenue development (NOKm) Key highlights Recurring revenues Consulting & other ▪ Revenues of NOK 65m in Q4, up 15% +15% 63 65 from last year 57 60 56 ▪ Sticky revenue base with recurring revenues >90% in Q4 54 56 53 59 49 ▪ Stable growth for recurring reve
Slide 13: 21% recurring revenue growth Q4 YoY
21% recurring revenue growth Q4 YoY 13 13% organic growth – strong market position with high stickiness and low churn +21% 59 Fx 1 1 2 5 +2% 49 +5% -3% +11% 56 Q4’22 Net upsale Churn New customers M&A Q4’23
Slide 14: ARR of NOK 239m with growing backlog
ARR of NOK 239m with growing backlog 14 Sales initiatives starting to pay off – strong growth in revenue backlog ▪ Signed not implemented +18% 247 239 8 ARR of NOK 8m vs. 2m YE Fx 2022 5 10 21 202 -3% +5% ▪ Close to total recurring +11% revenue from new customers LTM ▪ Boosted by Volvat agreement, m
Slide 15: Improving profitability
Improving profitability 15 Cash profitability has improved by cost savings, cost base remains high Aim to grow revenues significantly faster than costs going forward Gross margin of 81% in Q4 4 6 2 2 1 -7 -9 -16 -12% -13% -22 -21 -25% -35% -38% Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Reported EBITDA - capex R
Slide 16: Q&A
Q&A