Smartcraft Group Ab (publ) · OMXSTO:SMCRT
Smartcraft Group Ab (publ) — Q1 2025 Earnings Presentation
25 slides from Smartcraft Group Ab (publ)'s earnings presentation, May 7, 2025
Slide 1: Q1 2025 report
Q1 2025 report MAY 77H, 2025 a7 Sv. SmartCraft BETTER DIGITAL TOOLS
Slide 2: Disclaimer
2 Disclaimer IMPORTANT – You must read the follow ing before continuing. The follow ing applies to this document, the oral presenta tion of the informa tion in this document by SmartCraft ASA (the "Company") or any person on behalf of the Company, and any que stion-and- answ er session that follow s
Slide 3: Agenda
3 Agenda o Q1 in brief o Financials o Summary and Q&A
Slide 4: This is SmartCraft
4 This is SmartCraft Leading Nordic provider of SaaS solutions for craftsmen and the construction industry 270 employees Norway, Sweden, Finland and the UK 13 400+ customers 130 000+ users
Slide 5: Construction industry challenges
5 Construction industry challenges Low margins Conflict Accidents Documentation 0-5% margins = High High level of conflict High level of Increasing demand level of bankruptcies between construction accidents and deaths for documentation company and and reporting customer
Slide 6: What we solve
6 What we solve People Material Documentation o Business overview and insight with control of people and material costs o Digital flow of documentation to avoid conflict o Digital quality assurance to build according to rules and regulations o Health and safety at your fingertips
Slide 7: Q1 2025 in brief
7 Q1 2025 in brief Continued strong growth, stable margin but increasing churn and downgrades MNOK 494 27.3% 9.3% Annual Recurring Adjusted EBITDA-capex Churn Revenue (excl. acquisitions) +23% YoY +3,1% points +21%
Slide 8: Continued good sales and marketing executions reflect good underlying demand
8 Continued good sales and marketing executions reflect good underlying demand o 16% increase in new customers (YoY) New customers (quarterly) o Uncertainty causes delayed buying decisions among potential customers +64% leads o Conversion rate “customer meeting / new sales” o 50-60% in 2023 +52% sal
Slide 9: Organizational synergies to improve scalability and profit margin
9 Organizational synergies to improve scalability and profit margin Maximize existing resources in each country and across geographies SmartCraft Norway o New sales director in place o Closing one office and relocate sales resources to Hønefoss, near Oslo o Expect to improve sales execution and prof
Slide 10: SmartCraft Spark is progressing as planned
10 SmartCraft Spark is progressing as planned o Disruptive solution for electrician companies, based on our platform SmartCraft Core o Aim to build a complete ecosystem for electricians in all markets, starting with offer and calculation tools o Continues to attract new customers and partners: o Sol
Slide 11: Launch of BIM feature in Congrid
11 Launch of BIM feature in Congrid o Official broad launch May 7th in Finland and Sweden o Designed to improve quality and safety workflows on construction sites o Integrated into existing Congrid solution for better customer experience o Enhances customer stickiness and upsell possibilities
Slide 12: Large total addressable market (TAM)
12 Large total addressable market (TAM) o TAM of NOK 50 billion* o ~700.000 addressable construction 10% companies 10% o ~10-15% penetration of mission critical 17% solutions o Ongoing digitalization of a digitally immature market 63% *Analysis by SmartCraft, August 2024. Calculated on basis of ARPC
Slide 13: Q1 key takeaways
13 Q1 key takeaways o Continued strong demand from potential customers but o Growth dampened by higher level of customer churn and downgrades and headwind from lower price increases YoY o SmartCraft Spark is progressing as planned, more info to come in H2 o SmartCraft BIM officially launched with in
Slide 14: Financials
14 SAlQ. SmartCraft Financials BETTER DIGITAL TOOLS
Slide 15: High growth in recurring revenue as basis for success
15 ARR bridge YoY, mNOK High growth in recurring +6% 59 494 revenue as basis for success 401 25 08 o High growth of 23% o Acquisition of Locka and Clixifix o Transitioning non-recurring revenue to ARR Q1'24 Organic Currency M&A Q1'25 growth effects o 6% organic growth o New sales continue at a high
Slide 16: Organic growth of 6% heavily affected by bankruptcies and downgrades
16 Organic growth of 6% heavily affected by bankruptcies and downgrades Organinc ARR growth % Churn % Downgrade % o Customer churning due to bankruptcies 24 increase by ~4-5 p.p last years 20 o Downgrades from existing customers as their 16 business activities slow down, reduces organic 13.9% ARR gr
Slide 17: Continued growth in revenue and strong profitability
17 Continued growth in revenue and strong profitability Solid YoY revenue growth Consistently high profitability R&D capex mNOK mNOK 97.0% 94.7% 40 0 35 0 0 +24.8% 137.0 30 0 40.9 % 38.5 % 7.8 % 36.0 % 34.2 % 34.7 % 25 7.3 % 0 109.7 20 0 33.1 % 0 29.2 % 27.3 % 15 25.3 % 24.2 % Acquired 10.0 0 Locka
Slide 18: Strong revenue growth in Sweden
18 Strong revenue growth in Sweden (mNOK) Sweden +27% o Strong growth o Continued good performance in new sales 51.5 28.1 65.5 30.2 o Organic growth hampered by churn and Q1'24 Q1'25 downgrades, and headwind from lower Revenue EBITDA Revenue growth price adjustments than last year o Acquisition of L
Slide 19: Challenging market in Norway
19 Challenging market in Norway (mNOK) Norway +3% o Lower growth in revenue o Improved new sales in the quarter, higher than all quarters last year, providing good revenue pipeline for 2025 46.1 20.0 47.6 18.1 o Growth hampered by increasing churn and downgrades Q1'24 Q1'25 o Headwind from lower pri
Slide 20: Positive signals in a challenging Finnish market
20 Positive signals in a Finland (mNOK) challenging Finnish market +5% o Growth improved further o Expecting continued improvements 12.2 3.5 12.8 3.3 o The previously expected rapid bounce- Q1'24 Q1'25 back likely at a slower pace due to a large customer downgrade Revenue EBITDA Revenue growth o Pos
Slide 21: Solid financial position and strong cash flow
21 Solid financial position Balance sheet, Mar 31, 2025 and strong cash flow mNOK Cash and cash equivalents Deferred revenue - to support growth strategy and M&A activity Current assets Current liabilities Non-current assets Non-current liabilities Goodwill and intangible assets Equity Operating cas
Slide 22: Key focus to drive continued profitable growth
22 Medium-term financial targets Key focus to drive continued profitable growth o Continue with marketing and sales excellence to build solid new customer pipeline 15-20% Bolt on M&A o Capitalize on investment in SmartCraft Core, firstly Organic growth with SmartCraft Spark o Realize synergies and u
Slide 23: CEO transition after 7 years
23 CEO transition after 7 years o Serve until successor is in place, but no longer than Q4 2025 o Will join as CEO of a Norwegian software company which does not compete with SmartCraft o Great team – great solutions – great strategy o Full speed ahead! o Board will initiate a thorough international
Slide 24: We continue on our profitable growth journey
24 We continue on our profitable growth journey o Continue our strategy to build a great and solid company o Reduced operational risk o Consistent strong operational cash flow Make sure to follow us for the latest news!
Slide 25: SmartCraft
yo SmartCraft ITAL TOOLS