06 Nov 2024 07:00 CET

Issuer

Crayon Group Holding ASA

Crayon Group Holding ASA (OSE: CRAYN) today reported its third-quarter results,
delivering significant profitability growth. The adjusted EBITDA was up 66
percent, and the working capital improved by 748 million NOK. The gross profit
increased by 14 percent.

“I am pleased to present a quarter characterized by strong, profitable growth,
higher margins and significant improvement in working capital, despite a more
cautious market than expected. With our differentiated and scalable business
model, we are well positioned to take full advantage of the growth opportunities
ahead,” said Crayon Group CEO Melissa Mulholland.

Gross Profit increased by 14%, primarily driven by strong growth in the Nordics
and Europe. Demand for Software and Cloud remains strong across multiple
vendors.

Adjusted EBITDA ended at NOK 238m, reflecting a margin of 16.6%. This is an
increase of NOK 95m compared to the same quarter the previous year. The increase
is a result of the company’s clear priority to improve profitability in the
consulting business as well as scaling the international markets.

Net working capital was NOK 157m, an improvement of NOK 748m compared to the
same quarter previous year.

Financial highlights:

Gross Profit NOK 1 435m Up 14%
Adjusted EBITDA NOK 235m Up 95m
Net Profit NOK 82m Up 95m
Net working capitalNOK 157m Up 748m

Significant growth opportunities
“Even if we experience strong demand and are ramping up to take advantage of new
opportunities, the overall market has been more cautious than expected.
Consequently, we are making minor adjustments to our guiding. However, we still
see strong growth opportunities, increased profitability and improved working
capital, driven by our service-first business model focused on customer value
and careful cost-control”. said Mulholland.

Updated guiding:
Gross profit growth: 15% to 17% (prev.18-20%)
Adjusted EBITDA: 19% to 20% (prev. 18-20%)
Net working capital: -10% to -15% (prev. - 5 to -12.5%)

Microsoft Incentives
In reference to the announced shift in Microsoft incentives that has received
recent attention, it is important to underline that these types of shifts have
always been a part of Microsoft’s partner model.
“As Microsoft Partner of the Year and fifth largest global partner, we believe
that the evolution of incentives will continue to support our profitable growth
in line with market demand, the way they always have,” said Mulholland.

Microsoft stresses that the incentives will continue to benefit its partners and
increase over time.
“The incentives and earning opportunities as a percentage of partner revenue
have increased over time as the company and partner network evolves. We’re now
shifting more partner funding into different strategic areas and investing more
than ever in our partners to drive growth in key areas like Copilot, Data & AI,
Security, and migrations. This move is all about helping our partners innovate
and grow in these crucial areas,” said Jeffrey York, Vice President of Global
Partner Investments, Global Partner Solutions Microsoft.
---
The financial report and presentation for Q3 2024 are enclosed and available at
https://www.crayon.com/investor-relations. CEO Melissa Mulholland and CFO Brede
Huser will present the results in a live webcast at 8:30 am CET that can be
accessed at www.crayon.com/investor-relations. It will be possible to submit
questions online. To join the conference call by telephone and ask questions,
please use the information below.

Dial in numbers:
DK: +45 7876 8490
SE: +46 8 1241 0952
NO: +47 2195 6342
UK: +44 203 769 6819
US: +1 646-787-0157
DE: +49 30 21789327
Conference Code: 115901

A recording of the webcast will be available on-demand after the live event has
concluded.

Investor contact:
Kjell Arne Hansen
Head of Investor Relations and Corporate Finance
ir@crayon.com
+47 950 40 372

About Crayon: Crayon is a customer-centric innovation and IT services company
with over 4,000 team members across 46 countries. We optimize businesses’ IT
estate to help them innovate with expertise they can trust. Our services create
value for companies to thrive today, and scale for tomorrow. For more
information, visit www.crayon.com.


631318_Crayon Group Q3 24 Financial Report.pdf
631318_Crayon Group Q2 24 Earnings Presentation.pdf

Source

Crayon Group Holding ASA

Provider

Oslo Børs Newspoint

Company Name

CRAYON GROUP HOLDING, Crayon Group Holdi ASA 24/28 FRN FLOOR C

ISIN

NO0010808892, NO0013187989

Symbol

CRAYN

Market

Oslo Børs