Itera — Earnings Release 2023

May 11, 2023

Strong growth and high profitability

Strong growth and high profitability

Oslo, 11 May 2023: Itera continues its strong growth trajectory quarter by quarter, showing an organic growth of 31% and an EBIT margin of 14.4% in the first quarter of 2023. This result reflects the outcome of the company’s consistent investments in international expansion, Digital Factory at Scale, and its people to capture the significant growth opportunities ahead.

Itera reports operating revenue of NOK 230.3 million (NOK 176.0 million) for the first quarter of 2023, which represents a growth of 31%, while gross profit grew by 34%.

- Our performance demonstrates the resilience of Itera. I am so proud of our incredibly talented people living our purpose every day - to deliver on the promise of sustainable digital transformation for our customers. We have built a strong international technology company with enthusiastic employees, and we spot on the case for digital transformation that has never been more urgent, says Arne Mjøs, CEO of Itera.

Itera’s headcount at the end of the first quarter of 2023 was 731, compared to 642 at the end of the first quarter of 2022. This represents an increase of 33 employees in the first quarter and 89 employees (14%) during the last 12 months.

- We see more of a divergence in the linear relationship between headcount and revenue growth, in line with our strategy. Beyond improved pricing, currency effects and billability, this more than ever reflects our strategic focus of leveraging our Digital Factory at Scale, doing more with less through automation and managed services, says Arne Mjøs.

Total operating expenses in the first quarter of 2023 were 32% higher at NOK 197.1 million (NOK 149.9 million).

The operating result before depreciation and amortisation (EBITDA) for the first quarter of 2023 increased by 22% to NOK 40.8 million (NOK 33.3 million), giving an EBITDA margin of 17.7% (18.9%).

The operating result (EBIT) for the first quarter increased by 27% to NOK 33.2 million (NOK 26.0 million), giving an EBIT margin of 14.4% (14.9%).

During the first quarter, Itera's AI team has been dedicated to exploring, learning, and evaluating the next generation of AI, such as generative AI and ChatGPT. Itera has also conceptualised its own Itera-GPT to be used internally as well as with customers. As a technology company, Itera is committed to helping customers responsibly use these tools.

- We are partnering with several of our customers to help them apply generative AI – from technology to implementation to impact. Furthermore, the ability to use cloud technology and apply a new way of working, such as our Digital Factory at Scale, to build the digital core is even more important to be ready for this next generation of computing, says Arne Mjøs.

Itera’s presence in Ukraine is a strategic and long-term choice, as is its social responsibility and commitment to Ukraine. The company’s operation in Ukraine is running as normal, and there is an increasing interest from customers who would like to engage Ukrainian IT specialists in their digitalisation projects to keep the economy running in Ukraine.

- During my fourth visit to Ukraine in March since Russia’s brutal invasion, I had productive meetings with the Ministry of Energy of Ukraine where we addressed the twin transition – green and digital – of the energy system in Ukraine. We will continue to grow our business in Ukraine and envision a significant expansion when the country is rebuilt after the war, says Mjøs.

The revenue from Itera's 30 largest customers accounted for 84% of its operating revenue, which is three percentage points higher than in the first quarter of 2022. New customers, defined as customers won during the last 12 months, accounted for 13% (9%) 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 – specialist in sustainable digital transformation

Itera is a leading international tech company that helps businesses and organisations to accelerate their sustainable digital transformation. We have a holistic 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 our 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 the 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.