Admicom Oyj · OMXHEX:ADMCM
Admicom Oyj — Q3 2023 Earnings Presentation
18 slides from Admicom Oyj's earnings presentation, Oct 5, 2023
Slide 1: Admicom Oyj Q1-Q3 results
Admicom Oyj Building sustainable future together Q1-Q3 results October 5, 2023 Petri Kairinen, CEO
Slide 2: Agenda
Agenda § Refreshed strategy from ERP to Contech § Q3 highlights and Admicom financials § Market situation § Strategy execution
Slide 3: Admicom Purpose & Vision
Admicom Purpose & Vision Purpose Productivity of customers Building sustainable future together Vision First choice of partner in Sustainability Investments of the European construction construction to quality software ecosystem
Slide 4: First choice of partner in the European construction software ecosystem
Strategic vision: ”First choice of partner in the European construction software ecosystem” Construction Construction technology for Multi-sector ERP- technology for building building ecosystem software in Finland ecosystem in Finland internationally § Limited capability for § Comprehensive portfoli
Slide 5: Highlights from Q3
Highlights from Q3 § New sales on satisfactory level considering market environment § Considerable success especially within smaller customers § Market situation has continued to be weak with increased churn especially following insolvencies § Extra focus paid into sales effectiveness, churn prevent
Slide 6: Key figures of January - September 2023
Key figures of January - September 2023 Recurring revenue growth EBITA ARR, MEUR (Comparable organic RR growth) 14.7% 39.3% 32.7 (12.2% *) (46.1%) (29.6) Revenue growth Gross churn 9/2023 Recurring revenue of total revenue 10.8% 10.6% 93% (27.2%) (12/2022: 7.7%) (88%) * Comparable organic recurring
Slide 7: Key financials of Q3 2023
Key financials of Q3 2023 ADMICOM GROUP 1-9/’23 1-9/’22 Change-% 7-9/’23 7-9/’22 Change-% Revenue, kEUR 26 127 23 576 10.8% 8 502 8 039 5.8% EBITDA, kEUR 10 357 11 166 -7.2% 3 762 3 806 -1.2% % of revenue 39.6% 47.4% 44.2% 47.3% Comparable organic recurring 22 835 20 358 12.2% 7 843 7 171 9.4% reven
Slide 8: Key figures change by quarter
Key figures change by quarter Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Revenue growth +30% +27% +12% +15% +6% Organic new sales +9% +8% +5% +2% +5% Annual adj. fees +3% +1% +0% +7% +1% Acquisitions +18% +18% +7% +6% 0% EBITDA-% 47% 37% 37% 38% 44% Change from the comparison -6 -5 -8 -11 -3 period in
Slide 9: Market situation in the construction sector
Market situation in the construction sector § The outlook for construction sector in Finland Construction sector revenue trends * continues to be weak 12 10,4 10,8 9,9 § Insolvencies increasing significantly 10 9,4 8,5 8 § New construction building starts stopped 6,6 6 4,7 § Government starting to r
Slide 10: Agenda
Agenda § Refreshed strategy from ERP to Contech § Q3 highlights and Admicom financials § Market situation § Strategy execution
Slide 11: Our North Star is the moonshot we aim for
Our North Star is the moonshot we aim for Our building ecosystem customers are +25% more productive than their peers Superior customer Comprehensive data experience is the result platform with AI: of seamless connection Innovative, but simple to use of software with value 2030: solutions utilize dat
Slide 12: Three principles guide us towards the North Star
Three principles guide us towards the North Star 2023-2024 2024-> Focus for Growth Accelerated Growth Bringing the ecosystem to the Winning customer Customer centricity as a client. Closeness with value- experience strategic advantage add services. Increasing speed and agility Data-driven comprehens
Slide 13: "Focus for Growth" means strengthening our base
“Focus for Growth” means strengthening our base Concrete steps taken already § Clarifying operating model and governance § Growth investments into joint operating practices § Deinvestment of non-standard Lakeus accounting clients § R&D investment of abt 1 MEUR for 2023 § R&D moved to fully agile § T
Slide 14: "Focus for Growth" means strengthening our base: next steps
“Focus for Growth” means strengthening our base Next steps during 2023 Short Term § Joint brand and culture finalized Priorities § Product suite vision in effect § International go-to-market planning § Efficient sales § AI strategy and first implementations § Churn prevention § Open up for further M
Slide 15: Admicommunity making the growth happen
Admicommunity making the growth happen § Investments into personnel 263 employees § in order to develop customer success, Services (accounting, product management and accounting customer success etc) services 16% 5% § Headcount decrease during Q3 from R&D & software dev 26% services 275 to 263 Sales
Slide 16: Outlook 2023
Outlook 2023 Themes affecting revenue growth and profitability Comparable recurring revenue Growth drivers: growth 2023 8-15% + New and expansion sales, cross-selling and annual pricing adjustments + M&A supported recurring revenue growth in H1’2023 – Economic downturn causes uncertainty to new sale
Slide 17: Admicom investment highlights
Admicom investment highlights 1. Firm foundation to build on Vision First choice of partner in the European construction software 2. Huge long-term potential in ConTech ecosystem. 3. Comprehensive cloud SaaS -suite Ambition 100 4. Solid financials and governance MEUR ARR by 2030
Slide 18: Thank you! Questions please!
Thank you! Questions please! investors.admicom.fi