Smartcraft Group Ab (publ) · OMXSTO:SMCRT
Smartcraft Group Ab (publ) — Q1 2022 Earnings Presentation
21 slides from Smartcraft Group Ab (publ)'s earnings presentation, May 24, 2022
Slide 1: Q1 2022 results
Q1 2022 results SmartCraft ASA 24th May 2022
Slide 2: Disclaimer
Disclaimer IMPORTANT – You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by SmartCraft ASA (the "Company") or any person on behalf of the Company, and any question-and-answer session that follows the oral
Slide 3: Agenda
Agenda • Market position • Q1 operational and financial highlights • Summary and outlook • Q&A Q1 2022 results Slide 3
Slide 4: Q1 highlights
Q1 highlights 33% total revenue growth (NOK 79 million) 21% organic ARR growth, 7% growth QoQ 95% recurring revenue 40% adjusted EBITDA margin 5% churn, down from 6% Several new partner initiatives Great market, great solutions and a great team Q1 2022 results Slide 4
Slide 5: Strong market despite macro challenges
Strong market despite macro challenges • Macro effects: • War in the Ukraine • Challenging global logistics • Inflation • NOK 10 BN market • Growing double digits annually • Majority does not have solution to increase productivity and profitability Q1 2022 results Slide 5
Slide 6: Our vision is to become the leading provider of specialized digital solutions for construction
Our vision is to become the leading provider of specialized digital solutions for construction companies in Northwestern Europe • Main focus is organic growth in the Nordics • Upsales to existing customers • Win new customers • Cross sell on existing portfolio • ...and bolt-on acquisitions • Targeti
Slide 7: Q1 operational and financial highlights
Q1 operational and financial highlights
Slide 8: Partnerships with leading players provide increased reach
Partnerships with leading players provide increased reach ABAX Optimera Norgeseliten 24SevenOffice Catenda Q1 2022 results Slide 8
Slide 9: Further securing current and future resource needs in R&D
Further securing current and future resource needs in R&D • Strong focus on employer branding • Continue attracting and keeping talented developers in our local teams • Working closer with universities • Team culture • Supportive model through outsourcing • Expanding our reach to find talented peopl
Slide 10: Finetuning our platform strategy
Finetuning our platform strategy • Our customer base in earliest stages of digitalization • Simplicity is the key • We offer best-of-breed and all-in-one solutions • Best-of-breed, needs like calculation or safety assurance • All-in-one project management solutions from A to Z, suited for general an
Slide 11: SmartCraft connecting the dots
SmartCraft connecting the dots Past structure Separate solutions Project Project management tool management tool • A starting point in the past where platforms were Advanced Office in your pocket stand alone • Finding the dots with a customer centric Communication Quality and safety perspective Cabl
Slide 12: SmartCraft connecting the dots
SmartCraft connecting the dots Future structure Interlinked solutions • From stand alone platforms to connected solutions • Data driven product decision making Project management tool Project management tool Advanced Office in your pocket • Continue focus on integrating our platforms where we find v
Slide 13: Accelerated growth in Q1
Accelerated growth in Q1 ARR development, mNOK +36% 278.9 266.8 259.9 • 36% growth in ARR 225.9 205.3 • 21% organic growth from new sales and upsales • Acquisition of HomeRun in May 2021 and Kvalitetskontroll in July 2021 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 • 7% QoQ organic ARR growth ARR bridge YoY, mNOK
Slide 14: Consistent growth
Consistent growth ARR development, mNOK ARR growth, mNOK 278.9 266.8 259.9 225.9 M&A 27.9 204.6 205.3 24.7 +17% +21% Organic 173.5 growth 8.8 17.6 8.6 8.8 10.6 7.0 7.8 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 YoY organic growth Quarterly currency adjustments not
Slide 15: Consistent like-for-like growth the last decade
Consistent like-for-like growth the last decade Aggregated revenue and CAGR for companies embedded in SmartCraft in 2020 mNOK 23% 19% 17% 17% 17% 17% 16% 16% 16% 15% 219 177 153 137 119 99 79 86 71 55 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Amalgamated revenue2 CAGR development1 1. CAGR pe
Slide 16: Q1 2022 - Continued growth in revenue and profitability
Q1 2022 - Continued growth in revenue and profitability Solid YoY revenue growth Strong profitability R&D capex mNOK mNOK mNOK 93.9% 94.7% 40.9% 40.4% +33.3% 79.1 +31.5% 7.9% 7.5% 59.3 31.9 24.3 4.7 5.9 Q1’21 Q1’22 Q1’21 Q1’22 Q4’20 Q4’21 Revenue Recurring revenue (%) Adj. EBITDA Adj. EBITDA margin
Slide 17: Strong balance sheet and cash flow
Strong balance sheet and cash flow Balance sheet, March 31, 2021 Cash flow mNOK mNOK 91.6 (11.0) (2.1) 200.7 (1.2) 83.3 +58.7 31.8 43.6 22.1 668.1 704.2 156.3 200.7 Assets Equity and liabilities Cash Cash flow Cash flow Cash flow FX Cash Q4’21 from from from Q1’22 Cash and cash equivalents Deferred
Slide 18: Financials
Financials Amounts in NOK (thousands) Q1 2022 Q1 2021 change change % Revenue from customers 79 079 59 317 19 762 33.3 % • Maintaining a high gross margin Purchase of goods and services 6 681 5 054 1 627 32.2 % • Payroll expenses increase from acquisition, Gross profit 72 398 54 264 20 393 33.4 % Gr
Slide 19: Summary and outlook
Summary and outlook
Slide 20: Medium term financial targets stand firm
Medium term financial targets stand firm Growth Margin Organic growth 15 – 20% bolt on M&A Margin expected to increase due to scalability of the business Short-term considerations: 1) Impact from acquired companies last 12 months 2) Additional costs as a listed company: New accounting system, New co
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