SmartCraft ASA (SMCRT) - Q4 2022: Another record-breaking quarter and solid market outlook

15 Feb 2023 07:02 CET

15.2.2023 07:02:32 CET | SmartCraft ASA | Half yearly financial reports and
audit reports / limited reviews

15 February 2023 - SmartCraft ASA, the leading Nordic provider of
mission-critical SaaS solutions to small and mid-sized companies in the
construction sector, today reported its results for the fourth quarter of 2022,
ending the period with annual recurring revenue (ARR) of NOK 318 million, which
represents a 12-month growth of 19 percent. Organic growth was 17 percent.
Reported revenue was NOK 91 million (+19 percent), of which 96 percent was
recurring. Adjusted EBITDA margin increased to 41 percent.

"In Q4 we present another record-breaking quarter and for the 7th quarter in a
row we continue to deliver on guided revenue and margin. This shows the strength
of our business model and that our solutions have a good market fit even in
turbulent times. Our solutions give our customers a competitive edge and are
increasingly important when the market is changing and margins are under
pressure", said CEO of SmartCraft Gustav Line.

Even if the construction industry as a whole experiences challenging market
conditions, SmartCraft does not see demand abating. The solutions help customers
operate efficiently and increase their profits, and with a subscription cost as
low as NOK 7 per day/user, SmartCraft is able to keep churn rates very low at 6
percent.

"Our core customer group are SMEs, working mainly with upgrades, renovation and
services of existing buildings. Since they are only to a small extent dependent
on large new building projects, they are more resilient in turbulent times.
Additionally, our largest customer group consists of skilled workers like
electricians and plumbers. They experience great demand from different energy
saving initiatives. User data from our solutions supports this and indicates
that our customers' project activity grew throughout the fourth quarter, a trend
that has continued into 2023" said Gustav Line.

Since SmartCraft became listed on Oslo Børs in June 2021, the number of
customers has increased by 33 percent through a mix of organic growth and
acquisitions. The company targets an organic growth of 15-20 percent per year in
the medium term, and increased margins due to the scalability of the business.

"We remain confident in reaching our targets. The SmartCraft sales model is
highly efficient, and we see that the customer acquisition cost has a payback
time of only one year, which combined with the low churn and the high
incremental cash contribution from new customers means that the return on
investments in sales are very attractive. Our profitability and cash generation
continues to be high. SmartCraft's SaaS based business model implies a very high
gross margin, and we can clearly observe the scalability of our profit model.
With most of our subscriptions being paid up front, the growth comes with a low
risk", said Gustav Line.



WEBCAST PRESENTATION

Investors, analysts and journalists are welcome to join to an English language
webcast presentation of the report today, Wednesday 15 February 2023, at 08:00
CET.

Webcast link:

https://channel.royalcast.com/landingpage/hegnarmedia/20230215_1/

Presenters: CEO Gustav Line, CFO Kjartan Bø, and CMO Katja Widlund

Viewers are welcome to submit written questions through the webcast player
during and after the presentation. A recording of the presentation will be
available on the same link and at

https://smartcraft.com/investor-relations/ after the live stream is concluded.

DISCLOSURE REGULATION

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.

The stock exchange announcement was published by the contact person, at the date
and time as set out above.

CONTACTS

* Gustav Line, CEO, +47 952 67 104, gustav.line@smartcraft.com
* Kjartan Bø, CFO, +47 410 27 000, kjartan.bo@smartcraft.com

ABOUT SMARTCRAFT ASA

SmartCraft is the leading Nordic provider of mission-critical SaaS solutions to
SME's in the construction sector. The company's business model is highly
scalable, based on 95% recurring revenue and low churn. The construction sector
is among the least digitalized industries and represents a NOK 10bn software
market in the Nordics, growing at a double-digit rate. SmartCraft's solutions
help customers to increase their productivity, margins, and resource efficiency.

ATTACHMENTS

SmartCraft ASA Segment history.pdf -
https://kommunikasjon.ntb.no/ir-files/17847761/2109/2831/SmartCraft%20ASA%20Segm
ent%20history.pdf

SmartCraft ASA Q4 2022 Report.pdf -
https://kommunikasjon.ntb.no/ir-files/17847761/2109/2832/SmartCraft%20ASA%20Q4%2
02022%20Report.pdf

SmartCraft ASA Q4 2022 Presentation.pdf -
https://kommunikasjon.ntb.no/ir-files/17847761/2109/2834/SmartCraft%20ASA%20Q4%2
02022%20Presentation.pdf

More information:
Access the news on Oslo Bors NewsWeb site

582429_en_SmartCraft ASA Q4 2022 Presentation.pdf
582429_en_SmartCraft ASA Q4 2022 Report.pdf
582429_en_SmartCraft ASA Segment history.pdf