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Carasent

Earnings Release Jul 14, 2023

3568_rns_2023-07-14_0a9d5057-da0a-4b23-a652-54c1d321d507.pdf

Earnings Release

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Interim report Q2 2023

14 July 2023

Disclaimer

Certain statements made in this Presentation may include forward-looking statements. These statements relate to the Company's expectations, beliefs, intentions or strategies regarding the future. The forward-looking statements reflect the Company's current views and assumptions with respect to future events and are subject to risks and uncertainties.

All though the Company believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation.

Carasent ASA is making no representations or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Carasent ASA, nor any of its directors, officers, employees or advisors will have any liability to you or any other person resulting from your use.

Q2 Highlights

Q2 2023 Summary

1 2

Revenue growth of 36% YoY

3

Cost savings program completed successfully

Organic growth of 17% YoY

4

31 clinics signed for Webdoc in Sweden

Strong balance sheet with cash position of NOK 655 million

5

Business and market update

Consistent track-record of growth

Increased growth

Cost cutting program

  • Cost cutting program initiated and completed in the quarter, saving approximately 40 MNOK on an annual basis. One off costs of 4.2 MNOK in the quarter.
  • Almost all of the savings are from fewer employees and consultants (32 FTE). All staff which are leaving as a result of the program have left the group. New roles and structures have been implemented.
  • Some consultantcy costs within HPI will stay until the end of September, all other savings have now been realized.
  • Savings across the group except Medrave and Metodika.
  • We are still staffed for growth and total capacity is higher than before.
  • The result is a more efficient organization with strong leaders which we now will conitnue to support.

Financial Review

Q2 2023 Financial summary

Strong revenue growth –recurring revenues around 90% of total

  • Sticky revenue base with recurring revenues around 90% of total revenues
  • Organic growth was higher than previous quarters boosted by consulting & other revenues
  • Organic growth in recurring revenues has been relatively stable
  • Strategic focus on delivering value to customers through new functionality in core markets
  • Increasing focus on new sales

Organic recurring revenue growth of 14% in Q2 YoY

Recurring revenue bridge Q2 2022 – Q2 2023 (NOKm)

Cost savings program completed during Q2 –full effect not reflected in figures

Cash cost base Q1 2023 vs. Q2 2023 Comments

  • Cash cost NOK 4 million lower in Q2 compared to Q1 (6 million at constant currency)
  • Cost savings program completed with estimated savings of ~40m per year
  • Savings did not have full effect within Q2 as the program was initiated during the quarter
  • Decrease partly driven by seasonality due to holiday effects

Profitability and cash flow starting to improve

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