Itera achieves organic growth of 29% in fourth quarter

16 Feb 2023 07:15 CET

Oslo, 16th February 2023: Itera continued to increase its growth trajectory,
achieving an organic revenue growth of 29% and an EBIT margin of 9.5% in the
fourth quarter. The company’s investment in Cloud Application Services shows
promising progress, fuelling the quarterly growth rate. This is despite an
invasion that directly affects our offices in Kyiv and Lviv.

Itera reports operating revenue of NOK 205.5 million (NOK 158.7 million) for the
fourth quarter of 2022, which represents a growth of 29.4%. For 2022 as a whole,
Itera’s operating revenue was NOK 735.8 million (NOK 593.0 million). The
annualised revenue growth rate the last 24 months has been 21.6% with an average
EBIT margin of 11.6%.

– I have never been so proud of how our great people navigate any kind of
challenges the invasion of Ukraine represents, says Arne Mjøs, CEO of Itera.

– I want to thank our incredibly talented people for their extraordinary work
and commitment to making 2022 a truly remarkable year for Itera. After Russia’s
invasion in Ukraine on 24th of February, no one could imagine that we would be
able to deliver organic growth of 29% and an operating EBIT margin of 9.5% in
the fourth quarter, he continues.
Itera has achieved profitable growth while continuing to invest in three new
offices in Central Europe, cloud capabilities and the professional growth of
employees, all in order to increase the scalability as a strong international
company.

Itera’s headcount at the end of the fourth quarter of 2022 was 698 as compared
to 617 at the end of the fourth quarter of 2021. This represents an increase of
81 employees (13%) over the last 12 months.
Total operating expenses in the fourth quarter of 2022 were 32% higher at NOK
186.0 million (NOK 140.6 million), while for 2022 as a whole they were up 28% to
NOK 658.6 million (515,9 million). Included in these figures are extra direct
costs of the invasion of Ukraine of NOK 3.3 million in the fourth quarter of
2022 and NOK 7.7 million for the year as a whole related to securing our
employees and customer deliveries as well as providing humanitarian support to
Ukraine.

The operating result before depreciation and amortisation (EBITDA) for the
fourth quarter of 2022 was a profit of NOK 28.2 million (NOK 24.4 million),
giving an EBITDA margin of 13.7% (15.4%). For 2022 as a whole, EBITDA was NOK
109.0 million (NOK 101.6 million) with an EBITDA margin of 14.8% (17.1%).

The operating result (EBIT) for the fourth quarter was a profit of NOK 19.4
million (NOK 18.1 million), giving an EBIT margin of 9.5% (11.4%). For 2022 as a
whole, EBIT was NOK 77.2 million (NOK 77.0 million) with an EBIT margin of 10.5%
(13.0%). Adjusted for the direct costs of the invasion, the EBIT margin would be
11.0% for the fourth quarter and 11.5% for 2022 as a whole.

– Over the last quarter, the economic outlook for 2023 have continued to
deteriorate. However, the latest technology spending forecast for 2023 continues
to show robust growth of 5% or so. We believe that the current macro situation
makes it even clearer to customers that they need to change more, not less. At
the same time, they're more and more focused on cost and resilience, Mjøs says.

– Because speed, cost and resilience are so important to our customers, we often
do multiple things at the same time to help in their digital transformation. We
continue to see a growing number of customers embrace our Digital Factory at
Scale to digitise faster, access digital talent and reduce costs”, he continues.

The revenue from Itera's 30 largest customers accounted for 82% of its operating
revenue during the fourth quarter of 2022, which is six percentage points higher
than in the fourth quarter of 2021. New customers, defined as customers won
during the last 12 months, accounted for 12% of revenue. 


For more information:

Arne Mjøs, CEO | arne.mjos@itera.com | +47 905 23 172
Bent Hammer, CFO | bent.hammer@itera.com | +47 982 15 497



About Itera – specialists in creating sustainable digital business
Itera is a leading international tech company that helps businesses and
organisations to accelerate their sustainable digital transformation. We have a
unique ability to bring digital to the core of their business because of our
full range of services in digital strategy and consulting, customer experience,
technology and cloud operations. Our integrated services and multi-disciplined
teams meet customer needs rapidly and at scale through world class distributed
delivery model across borders and our Digital Factory at Scale doing more for
less. For the past six years, Itera has been recognised as one of Norway's 25
most innovative companies, and its distributed delivery model was recognised as
best in the world by the Global Sourcing Association (GSA) in 2018. Working from
our 13 offices in the Nordics and Central and Eastern Europe, we serve customers
in 20 countries worldwide. Itera is a listed company on the Oslo Stock Exchange
under the ticker ITERA.

More information:
Access the news on Oslo Bors NewsWeb site

582598_Itera interim report Q4 2022.pdf
582598_Itera Q4 2022 Presentation.pdf