Annual Report • Feb 23, 2022
Annual Report
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SmartCraft ASA
| Letter from the CEO3 | |
|---|---|
| About SmartCraft ASA 5 | |
| Q4 2021 in Brief6 | |
| Key figures6 | |
| Operational Development 7 | |
| Product and technology development8 | |
| Segments 9 | |
| Financial Review11 | |
| Cash flow 13 | |
| Financial position13 | |
| Share information 13 | |
| Risk factors 13 | |
| Outlook 14 | |
| Condensed Consolidated Financial Statements 15 | |
| Consolidated Statement of Comprehensive Income 15 | |
| Consolidated Statement of Financial Position16 | |
| Consolidated Statement of Changes in Equity18 | |
| Consolidated Cash Flow Statement19 | |
| Explanatory Notes to the Consolidated Financial Statements 20 | |
| Alternative Performance Measures (APMs) 21 |
SmartCraft has now fi nished its fi rst year as a listed company. It has been an eventful year with the successful IPO process, the addition of HomeRun and Kvalitetskontroll to the SmartCraft family, as well as the good and continuing underlying development of the company. I am very pleased to report that we continue to build a strong momentum in the fourth quarter with an organic recurring revenue growth of 18% and a solid organic ARR growth of 17% compared to the fourth quarter 2020.
Profi table and sustainable growth is part of SmartCraft's DNA. The fourth quarter was another period with high profi t margins and strong cash fl ow. With a healthy cash position and no debt, we are in the position to continue to grab the opportunities the market off ers – both in terms of organic growth and targeted bolt-on acquisitions.
Our adjusted EBITDA margin in Q4 was 37%. In Q4 we have invested more in the development of new products and services that will drive future growth. From
proven history we know that SmartCraft has produced excellent return on investments in customer growth. This will continue, and already in early 2022 we see positive eff ects and increased organic growth from the development initiatives taken in the second half of 2021.
Regardless of any volatility and uncertainty in the fi nancial markets, we experience a continued and strong demand for our solutions. As a specialized Software-as-a-Service (SaaS) player within construction we have identifi ed a market opportunity of NOK 10.5 billion in the Nordics alone, and this market is growing by double digits annually.
"Our main focus is organic growth in the Nordics through upsell to existing customers, by winning new customers and by cross selling on our portfolios."
The demand for specialized SaaS construction is driven by several factors:
We are well positioned with our solutions to help customers to increase their productivity and profi tability and we believe that construction companies that prioritize to digitalize and modernize their business processes will be the winners in this industry in the future.
We exited the fourth quarter with an annual recuring revenue (ARR) of NOK 267 million, which is 30% higher than last year. Total revenue for 2021 was NOK 271 million. In Q4 we saw a revenue growth of 38% ending the quarter at NOK 76 million. The revenue growth was driven by the acquisitions of Congrid (December 2020), HomeRun (May 2021) and Kvalitetskontroll (July 2021), and the continued focus on the Group's SaaS solutions resulting in organic growth in number of customers and revenue per customer, off set by eff ects of changes in currency rates. Like in Q3, the organic revenue growth in Q4 was 14%.
"In Q4 year-on-year organic recurring revenue growth was 18%, up from 17% in Q3 2021."
Our strategy is to continue to have a high proportion of recurring revenue. In Q4 year-on-year organic recurring revenue growth was 18%, up from 17% in Q3 2021. Like in Q3 2021, 96% of the revenue is recurring.
Our main focus is organic growth in the Nordics through upsell to existing customers, by winning new customers and by cross selling on our customer bases. Additionally, we are pursuing M&A opportunities both in existing and new geographies and are in dialogue with several companies. At the same time, we are patient - capital discipline is priority number one, and we will only pursue the right acquisition target at the right price.
Our medium-term targets of annual organic revenue growth of 15-20 percent and growing EBITDA margins due to scalability of the business stay fi rm.
2021 was an eventful year for SmartCraft with new solutions and people onboard from the two acquisitions in the fi nancial year and the acquisition of Congrid in December 2020. Additionally, the listing in June required new internal and external processes. With the business rhythm now in place and a tuned organization focusing on the same goals we stay very optimistic about capturing the future market opportunities.
4
Gustav Line CEO
SmartCraft is a leading provider of mission-critical software to the construction industry. The Group enables construction companies to increase their productivity, reduce the administrative burden and make it easier to comply with the ever-evolving landscape of applicable laws and regulations aff ecting the construction industry. SmartCraft's vision is to become the leading provider of specialized digital solutions for construction companies in the Northwestern part of Europe.
SmartCraft's SaaS off erings are module-based and include comprehensive off erings of software solutions to (i) optimize project budgeting by enhancing sales and minimizing costs, (ii) enhance project execution by minimizing budget deviations and (iii) minimize project risk through full documentation and insight. SmartCraft's solutions are provided through six strong brands targeting various markets:
We have a strong focus on cross group sales and sales in new regions in the Nordics. We believe the best decisions will be found by the people closest to the customers and together we have initiated many good cross group growth initiatives in the Group. In 2021, with a new CTO in place, we started several activities to align software development in the group
The SaaS solutions off ered by the Group are provided on a subscription basis. In general, after a 12 months nonterminable initial term, the customers' subscription turns evergreen where the subscription may be terminated by giving three months prior written notice. The Group has more than 11 000 customers and 115 000 users utilizing its software solutions.
| Amounts in NOK (millions) | Q4'21 | Q4'20 | FY'21 | FY'20 |
|---|---|---|---|---|
| Annual Recurring Revenue | 266.8 | 204.6 | 266.8 | 204.6 |
| Revenue | 76.2 | 55.2 | 270.8 | 195.9 |
| Adjusted EBITDA | 28.0 | 22.9 | 108.5 | 80.9 |
| Adjusted EBITDA-margin | 36.8 % | 41.4 % | 40.1 % | 41.3 % |
| Churn rate (Annualized / R12m) | 6.1 % | 6.0 % | 6.3 % | 5.7 % |
SmartCraft strongly believes in the organization focusing to have customers on a recurring revenue model. This means shifting one-time revenue to recurring revenue, hampering the short-term revenue. As a result of this, nonrecurring revenue declined by 39% in Q4 while recurring revenue shows a 18% growth in the same period. In total recurring revenue accounts for 96% of the total revenue for the quarter. This shows our dedication as a pure SaaS player.
In Q4 ARR grew by NOK 62.3 million compared with the end of Q4 2020, largely driven by the eff ect of the HomeRun and Kvalitetskontroll acquisitions in 2021 and an organic growth of 17%. The ARR at the end of Q4 was NOK 6.9 million higher than at the end of Q3, including a negative currency eff ect of NOK 3.6 million. The drivers of the Q4 ARR growth is great new sales and the focus on transitioning non-recurring revenue to SaaS-services and recurring revenue.
We continue to invest in new sales and upsell, as we know that this gives high ROI.
The Group drives several initiatives to support our customers when needed and to make sure they utilize the software in a right way in order to maximize their investment. Great Customer Success departments combined with good software pays off as the annualized customer revenue churn in Q4 2021 was stable at 6.1%.
Partnerships are an important way to scale our business. Typically, the partnerships open for selling to the customers or members of the partner, releasing a great revenue potential. In Q4 we engaged in several partner initiatives:
Additionally, we have announced some customers reference stories showing how SmartCraft contributes to digitalize the industry. One of Sweden's largest housebuilders, JSB Construction AB, introduces digital safety and quality inspections with Congrid, hence removing manual processes. Similarly, the Consti Group, listed on the Finnish stock exchange and one of the leading Finnish renovation and technical building services companies, chose Congrid to help improve project control. These are just two examples of how our software digitalizes the construction industry.
Christian Saleki started as CTO in June 2021. To further build on SmartCraft's success several initiatives were set in motion in Q4:
As a SaaS solution provider, we are always looking to enhance our software's user experience in ways that enables self-service and for the users to be self-suffi cient. During Q4 2021, we implemented a third-party self-service solution in Bygglet with great results. The solution off ers interactive step-by-step guides that introduce a new customer to the Bygglet software. Additionally, the users are also able to serve themselves when they need to order new licenses or additional modules. This greatly reduces their onboarding time and improves our scalability. In Q4 more than 6 000 users interacted on average 28 times with the self-service tool, resulting in more than 160 000 interactions. The project has been deemed a success and we have decided to move forward with onboarding more of our solutions to the digital adoption platform during 2022.
As a software solution provider, it is important for us to work closely with the cloud service providers we run our software in both to maintain cost control over time but also to attain knowledge about best practices from the industry. During Q4, we tightened our partnership with both Amazon (AWS) and Microsoft (Azure) in a few collaborative projects where we also touched upon matters related to ESG. We know that we can utilize the cloud in ways that would reduce our carbon footprint while at the same time cutting some costs.
Although the topic of security has always been a part of our software development philosophy, we know that the landscape is changing, and we need to keep up with new and more sophisticated threats that might come. Therefore, we have instigated a series of security workshops in Q4 to both re-assess our current situation but also to make proper documentation of our system security.
SmartCraft's primary ambition is to maintain an in-house development strategy but due to the high demand for developers, we have initiated two mid-sized projects with an outsourcing partner for a trial period of six months.
SmartCraft is present in three geographical markets, and the revenue distribution is shown below. The acquisition of Kvalitetskontroll in July 2021 contributed to the growth in Norway, whereas the presence in Finland is a consequence of the acquisitions of Congrid in December 2020 and Homerun in May 2021.
| Amounts in NOK (millions) | Q4'21 | Q4'20 | FY'21 | FY'20 |
|---|---|---|---|---|
| Norway | 31.4 | 22.6 | 108.4 | 85.8 |
| Sweden | 34.6 | 30.2 | 126.8 | 107.7 |
| Finland | 10.2 | 2.4 | 35.6 | 2.4 |
| Total revenues | 76.2 | 55.2 | 270.8 | 195.9 |
SmartCraft recognizes Specialized contractors and General contractors as the operating units that form natural reporting segments.
The three solutions acquired in 2020 and 2021 all fall into the General contractors segment.
The Specialized contractors segment consists of our most established brands with a long history, a strong market position in their areas and high EBITDA margins. These solutions still have a share of customers with the solutions deployed on-premise. We are continuously moving these customers to a SaaS environment, which over time will enable higher revenue growth.
| Amounts in NOK (millions) | Q4'21 | Q4'20 | FY'21 | FY'20 |
|---|---|---|---|---|
| Specialized contractors | 31.7 | 30.5 | 123.5 | 114.0 |
| General contractors | 44.4 | 24.7 | 147.3 | 81.9 |
| Total revenue in segments | 76.2 | 55.2 | 270.8 | 195.9 |
| Organic growth | ||||
| Specialized contractors | 5.1 % | 8.8 % | ||
| General contractors | 24.0 % | 23.7 % |
| Amounts in NOK (millions) | Q4'21 | Q4'20 | FY'21 | FY'20 |
|---|---|---|---|---|
| Specialized contractors | 16.1 | 11.8 | 65.2 | 54.5 |
| General contractors | 17.1 | 10.1 | 53.2 | 30.0 |
| Total adjusted EBITDA in segments | 33.1 | 21.9 | 118.5 | 84.6 |
| *Excluding SmartCraft ASA | ||||
| Adjusted EBITDA margin | ||||
| Specialized contractors | 50.7 % | 38.6 % | 52.8 % | 47.8 % |
| General contractors | 38.4 % | 41.1 % | 36.1 % | 36.7 % |
| Amounts in NOK (thousands) | Q4'21 | Q4'20 | FY'21 | FY'20 |
|---|---|---|---|---|
| Revenue from customers | 76 153 | 55 221 | 270 762 | 195 941 |
| Total operating revenue | 76 153 | 55 221 | 270 762 | 195 941 |
| Purchase of goods and services | 6 475 | 5 936 | 22 866 | 19 523 |
| Payroll and related expences | 28 105 | 21 257 | 104 986 | 74 559 |
| Other operating expenses | 13 933 | 8 542 | 62 304 | 25 197 |
| Total operating expenses | 48 513 | 35 736 | 190 156 | 119 278 |
| EBITDA | 27 639 | 19 485 | 80 606 | 76 663 |
| Adjustments of special items | 414 | 3 403 | 27 857 | 4 271 |
| Adjusted EBITDA | 28 054 | 22 888 | 108 463 | 80 934 |
| Depreciation and amortization | 7 149 | 4 763 | 22 726 | 17 053 |
| Operating profi t (loss) before fi nancial items and tax | 20 490 | 14 722 | 57 880 | 59 610 |
| EBITDA-margin | 36.3 % | 35.3 % | 29.8 % | 39.1 % |
| Adjusted EBITDA-margin | 36.8 % | 41.4 % | 40.1 % | 41.3 % |
SmartCraft's consolidated revenues in Q4 were NOK 76.2 million and NOK 270.8 million in 2021. This represents a growth of 37.9% and 38.2% respectively compared to the same periods last year. The revenue growth was driven by the acquisitions of Congrid (December 2020), HomeRun (May 2021) and Kvalitetskontroll (July 2021), and the continued focus on the Group's SaaS solutions resulting in organic growth in number of customers and revenue per customer, off set by the eff ects of changes in currency rates.
The SmartCraft Group continues to execute on its strategy to service all customers SaaS solutions on common SaaS environments. This includes both migrating its remaining on-premise customers to a SaaS environment, and transitioning non-recurring revenue into a SaaS service. As an eff ect non-recurring revenue is steadily decreasing as the migration progresses.
| Currency adjusted organic growth | Q4'21 | FY'21 |
|---|---|---|
| Fixed price subscriptions (ARR) | 15.7 % | 16.4 % |
| Transaction priced add-on subscriptions | 37.7 % | 29.0 % |
| Total recurring revenue | 17.8 % | 17.6 % |
| Non-recurring revenue | (38.8 %) | (18.5 %) |
| Total revenue | 13.6 % | 15.0 % |
The recently acquired companies did not capitalize development costs per the end of Q3 2021. SmartCraft have evaluated all the development projects for the fi nancial year. In second half of 2021 we have intentionally invested in projects to boost revenue in 2022. Hence, several development projects qualifi ed for capitalization, representing potential future revenue, and the capitalization is included in Q4 2021. Of the capitalized amount of NOK 9.8 million in Q4, NOK 3.7 million relates to the period January-September.
In total SmartCraft recognizes NOK 21.7 million in capitalization of development costs in 2021. This constitutes 8.0% of the revenue, which is higher than previous estimations for the year. In Q4 we have invested more in the development of new products and services that will drive future growth. In 2022 we expect the capitalization to be around the same level as for the fi nancial year 2021.
The reported EBITDA in Q4 2021 was NOK 27.6 million. In Q4 2021 SmartCraft expensed the fi nal costs related to the recent acquisitions. Adjusted for these one-time costs the adjusted EBITDA was NOK 28.1 million. The adjusted EBITDA margin for Q4 2021 was 36.8%, which is lower than for the same period last year when the adjusted EBITDA margin was 41,4%. The reduction in adjusted EBITDA margin is to a large extent driven by targeted growth initiatives. Increased sales- and marketing eff orts aff ect margins negatively short-term, but are expected to yield good results going forward. There is also increased cost related to being publicly listed. The most important factor is, however, a dilutive eff ect of 3.5%-points from the acquisitions of Congrid, HomeRun and Kvalitetskontroll., as these solutions have a considerably lower EBITDA margin than the rest of SmartCraft. Adjusted EBITDA margin without the three recent add-ons is 40.1% in Q4 2021 and 44.1% for the full year 2021 compared to 41.3% year to date December 2020. We regard the latest acquisitions to be very successful additions to the Group, and are confi dent that we over time will be able to increase EBITDA margin in the acquired solutions.
Depreciations and amortizations were NOK 7.1 million in Q4 2021 compared to NOK 4.8 million in Q4 2020. The increase is a result of the Group's continuous R&D activity and acquisitions.
Operating profi t was NOK 20.5 million in Q4 2021 compared to NOK 14.7 million in Q4 2020. The increase was curbed by one-off costs related to the acquisitions, a higher relative share of cost base in the acquired companies, a limited build-up of SmartCraft corporate functions to secure a solid infrastructure for continued growth, including cost related to being publicly listed, and currency translation eff ects. As planned, SmartCraft has also invested to enable continued short- and long-term growth, which in the short-term has a negative eff ect on margin and profi t growth.
Net fi nancial income was NOK -2.3 million in Q4 2021 compared to NOK -1.0 million in Q4 2020. Financial expense in Q4 2021 is loss on changes in currency rates, while fi nancial expenses in Q4 2020 is mainly interest on debt.
Cash fl ow from operating activities was NOK 28.8 million in Q4 2021 and NOK 104.5 million year to date, driven by EBITDA and changes in net working capital. These changes are a result of up-front payment from customers and payables to employees. During 2021, the negative net working capital position, in combination with growth, contributed NOK 16.4 million in operating cash fl ow for the Group.
Cash fl ow from investing activities was NOK -10.3 million in Q4 2021 and NOK -109.1 million year to date, driven by net payments for acquisitions in Q4 2020. Capitalized R&D was NOK 9.8 million for Q4 2021, whereof NOK 3.7 million is related to previous periods, compared to NOK 2.7 million for Q4 2020. The corresponding fi gures were NOK 21.7 million year to date December 2021 and NOK 11.6 million year to date December 2020.
Net cash fl ow from fi nancing activities was NOK -1.8 million in Q4 2021 and NOK 91.1 million year to date, driven by the net proceeds from the equity capital increase in connection with the listing on Oslo Børs Stock Exchange, off set by repayment of loan facilities and redemption of preference shares.
SmartCraft is in a net cash position and is well capitalized to deliver on the stated growth ambitions and M&A strategy.
Total assets amounted to NOK 886.3 million (NOK 690.9 million at the end of 2020), of which cash and cash equivalents amounted to NOK 156.3 million (NOK 79.9 million at the end of 2020). Non-current assets amounted to NOK 700.4 million (NOK 590.3 million at the end of 2020) which primarily consist of goodwill and intangible assets from the Group's R&D and acquisitions.
Total liabilities amounted to NOK 186.9 million (NOK 366.9 million at the end of 2020). The decrease is related to the repayment of loan facilities (NOK 234.5 million), off set mainly by the increase in deferred revenue and other current liabilities.
At the end of Q4 2021 SmartCraft ASA had 171.5 million shares. Average number of common shares in 2021 was 155.9 million shares. Including the preference shares the average number of total shares in 2021 was 303.5 million shares. The preference shares were redeemed June 21, 2021.
Risk factors are described in the information document prepared in connection with the listing on Oslo Børs, published June 24, 2021.
We have a very positive future outlook as the market opportunities are great. We experience a continued and strong demand for our solutions. As a specialized SaaS player within construction we have identifi ed a market opportunity of NOK 10.5 billion in the Nordics alone, and this market is growing by double digits annually.
Our main focus is organic growth in the Nordics through upsell to existing customers, by winning new customers and by cross selling on our customer bases. Additionally, we are pursuing M&A opportunities both in existing and new geographies and are in dialogue with several companies. At the same time, we are patient - capital discipline is priority number one, and we will only pursue the right acquisition target at the right price.
Our medium-term targets stay fi rm. SmartCraft targets 15-20% organic growth in the medium-term, and any acquisitions will come on top of that. We expect adjusted EBITDA margin in the medium-term to increase due to scalability of the business. Impact from acquired companies last 12 months and additional costs as a listed company are short-term considerations to the adjusted EBITDA margin.
We have a highly motivated and aligned organization that is well positioned with our solutions to help customers to increase their productivity and profi tability. We strongly believe that construction companies that prioritize to digitalize and modernize their business processes will be the winners in this industry in the future.
| Amounts in NOK (thousands) | Q4'21 | Q4'20 | FY'21 | FY'20 |
|---|---|---|---|---|
| Revenue from customers | 76 153 | 55 221 | 270 762 | 195 941 |
| Total operating revenue | 76 153 | 55 221 | 270 762 | 195 941 |
| Purchase of goods and services | 6 475 | 5 936 | 22 866 | 19 523 |
| Payroll and related expences | 28 105 | 21 257 | 104 986 | 74 559 |
| Other operating expenses | 13 933 | 8 542 | 62 304 | 25 197 |
| Depreciation and amortization | 7 149 | 4 763 | 22 726 | 17 053 |
| Total operating expenses | 55 663 | 40 499 | 212 882 | 136 331 |
| Operating profi t (loss) before fi nancial | ||||
| items and tax | 20 490 | 14 722 | 57 880 | 59 610 |
| Financial income | 2 897 | 1 230 | 5 615 | 8 029 |
| Financial expenses | (5 239) | (2 268) | (14 334) | (15 201) |
| Financial income (expense), net | (2 342) | (1 038) | (8 720) | (7 172) |
| Profi t (loss) before tax | 18 148 | 13 684 | 49 160 | 52 438 |
| Tax expense | 8 017 | 6 424 | 14 545 | 13 298 |
| Profi t (loss) | 10 131 | 7 260 | 34 616 | 39 140 |
| Other comprehensive income | ||||
| Items that will be reclassifi ed to profi t or loss: | ||||
| Currency translation diff erences, net of tax | (7 309) | 196 | (18 075) | 15 787 |
| Total | (7 309) | 196 | (18 075) | 15 787 |
| Total comprehensive income | 2 823 | 7 456 | 16 540 | 54 927 |
| ASSETS | ||
|---|---|---|
| Amounts in NOK (thousands) | 31.12.21 | 31.12.20 |
| Deferred tax assets | - | - |
| Goodwill | 491 134 | 421 900 |
| Intangible assets | 187 480 | 146 977 |
| Right to use assets | 17 009 | 17 111 |
| Tangible Assets | 4 732 | 4 353 |
| TOTAL NON-CURRENT ASSETS | 700 355 | 590 341 |
| Inventory | 73 | 55 |
| Other current assets | 4 987 | 4 032 |
| Other current fi nancial assets | - | 69 |
| Accounts Receivable | 24 583 | 16 454 |
| Cash and cash equivalents | 156 277 | 79 902 |
| TOTAL CURRENT ASSETS | 185 919 | 100 512 |
| TOTAL ASSETS | 886 274 | 690 853 |
| Amounts in NOK (thousands) | 31.12.21 | 31.12.20 |
|---|---|---|
| Share capital | 1 715 | 4 497 |
| Share premium | 605 893 | 244 193 |
| Retained earnings | 97 987 | 63 371 |
| Other components of equity | (6 223) | 11 853 |
| TOTAL EQUITY | 699 372 | 323 914 |
| Non-current fi nancial liabilities | 1 158 | 171 339 |
| Non-current lease liabilities | 9 913 | 10 728 |
| Deferred tax liabilities | 33 469 | 28 993 |
| Total non-current liabilities | 44 540 | 211 060 |
| Deferred revenue | 59 593 | 41 627 |
| Current portion of lease liabilities | 6 952 | 6 047 |
| Accounts payable | 6 501 | 5 567 |
| Taxes payable | 18 369 | 8 053 |
| Other current fi nancial liabilities | (0) | 64 877 |
| Other current liabilities | 50 947 | 29 709 |
| Total current liabilities | 142 362 | 155 879 |
| TOTAL LIABILITIES | 186 902 | 366 939 |
| TOTAL EQUITY AND LIABILITIES | 886 274 | 690 853 |
| Other | |||||
|---|---|---|---|---|---|
| Share | components | Retained | |||
| Amounts in NOK (thousands) | Share capital | premium | of equity | earnings | Total equity |
| Total equity 31.12.19 | 4 380 | 227 752 | (3 934) | 24 231 | 252 429 |
| Profi t / (-) loss for the period | - | - | - | 39 140 | 39 140 |
| Other comprehensive income | - | - | 15 787 | - | 15 787 |
| Capital increase 22.01.20 | 10 | 800 | - | - | 810 |
| Capital increase 02.03.20 | 7 | 494 | - | - | 500 |
| Capital increase 30.12.20 | 100 | 15 147 | - | - | 15 248 |
| Total equity 31.12.20 | 4 497 | 244 193 | 11 853 | 63 371 | 323 914 |
| Profi t / (-) loss for the period | - | - | - | 34 616 | 34 616 |
| Other comprehensive income | - | - | (18 075) | - | (18 075) |
| Capital decrease 21.06.21 | (3 109) | (205 864) | - | (208 973) | |
| Capital increase 22.06.21 | 284 | 489 219 | - | - | 489 503 |
| Capital increase 05.07.21 | 38 | 67 732 | - | - | 67 770 |
| Capital increase 09.07.21 | 5 | 10 613 | - | - | 10 618 |
| Total equity 31.12.21 | 1 715 | 605 893 | (6 223) | 97 987 | 699 372 |
| Amounts in NOK (thousands) | Q4'21 | Q4'20 | FY'21 | FY'20 |
|---|---|---|---|---|
| Operating activities | ||||
| Profi t before tax | 18 148 | 13 684 | 49 160 | 52 438 |
| Paid taxes | (1 518) | (3 491) | (5 811) | (7 258) |
| Depreciation | 2 548 | 2 364 | 10 085 | 8 310 |
| Amortisation of intangible assets | 4 602 | 2 395 | 12 641 | 8 743 |
| Accrued interest expense | - | (60) | - | (385) |
| Items classifi ed as investing or fi nancing activities | 2 147 | 5 781 | 22 090 | 16 101 |
| Net cash provided from operating activities before net | ||||
| working capital changes | 25 927 | 20 673 | 88 165 | 77 948 |
| Working capital adjustments: | ||||
| Changes in accounts receivable | 374 | 2 141 | (5 672) | 182 |
| Changes in deferred revenue | (3 897) | 1 821 | 6 572 | 11 745 |
| Changes in accounts payable | (949) | 2 842 | (72) | 1 728 |
| Changes in all other working capital items | 7 096 | (3 788) | 15 536 | 6 863 |
| Net cash provided from operating activities | 28 551 | 23 690 | 104 529 | 98 466 |
| Investing activities | ||||
| Investments in tangible and intangible assets | (104) | (169) | (377) | (1 280) |
| Payments for acqusitions | - | (69 101) | (81 477) | (69 101) |
| Acquisition transaction costs | (414) | (3 106) | (5 481) | (3 106) |
| Payments for software development costs | (9 829) | (2 667) | (21 737) | (11 579) |
| Net cash used in investing activities | (10 348) | (75 042) | (109 073) | (85 066) |
| Financing activities | ||||
| Cash proceeds from capital increases | - | - | 567 770 | 500 |
| Cash proceeds from loan facilities | - | 60 000 | - | 60 000 |
| Downpayment on loan facilities | (51) | - | (234 597) | (14 280) |
| Interest payments | (17) | (1 844) | (4 794) | (7 751) |
| Repayments of capital decreases | - | - | (208 973) | - |
| Repayments of lease liabilities | (1 716) | (831) | (6 783) | (5 244) |
| Other fi nancial items | - | - | (21 529) | - |
| Net cash provided by (used in) fi nancing activities | (1 784) | 57 325 | 91 095 | 33 225 |
| Net increase (decrease) in cash and cash equivalents | 16 420 | 5 974 | 86 551 | 46 625 |
| Cash and cash equivalents at the beginning of period* | 145 251 | 76 878 | 79 902 | 39 971 |
| Foreign currency eff ects on cash and cash equivalents | (5 394) | (2 950) | (10 177) | (6 694) |
| Cash and cash equivalents at end of period* | 156 277 | 79 902 | 156 277 | 79 902 |
* Cash and cash equivalent include restricted funds
The interim report for the SmartCraft Group for 4th quarter 2021 has been prepared in accordance with IAS 34 Interim Financial Reporting. The same accounting policies and methods for computation have been applied as in the latest annual statement. For further information on accounting policies see the Annual Report 2020.
| Revenue | |||||
|---|---|---|---|---|---|
| Amounts in NOK (thousands) | Q4'21 | Q4'20 | FY'21 | FY'20 | recognition |
| Fixed price subscriptions | 65 924 | 46 239 | 232 596 | 165 613 | Over time |
| Transaction priced subscriptions (add-on features) | 7 273 | 4 833 | 24 918 | 16 555 | Point in time |
| Total recurring revenue | 73 197 | 51 072 | 257 514 | 182 169 | |
| Non-recurring revenue | 2 956 | 4 149 | 13 248 | 13 772 | Point in time |
| Total revenue | 76 153 | 55 221 | 270 762 | 195 941 |
| Q4'21 | Q4'20 | FY'21 | FY'20 | ||
|---|---|---|---|---|---|
| Profi t for the year due to holders of shares Average numbers of shares* |
TNOK | 10 131 171 522 305 |
7 260 135 841 259 |
34 616 155 857 151 |
39 140 135 722 423 |
| Earning per share | NOK | 0.06 | 0.05 | 0.22 | 0.29 |
* Refers to the Group's common shares as SmartCraft redeemed all of its preference shares in June 2021. From June 21, 2021 SmartCraft has only one class of shares, common shares. Earning per share is calculated per common share both for 2021 and 2020. Common shares were split 1:100 in 2021 and for comparison purposes this is adjusted for both 2021 and 2020.
The following terms are used by the Group in defi nitions of APMs:
| Q4 2021 REPORT | |
|---|---|
| Amounts in NOK (thousands) | Q4'21 | Q4'20 | FY'21 | FY'20 |
|---|---|---|---|---|
| Revenue from customers | 76 153 | 55 221 | 270 762 | 195 941 |
| Total operating revenue | 76 153 | 55 221 | 270 762 | 195 941 |
| Amounts in NOK (thousands) | Q4'21 | Q4'20 | FY'21 | FY'20 |
| EBITDA | 27 639 | 19 485 | 80 606 | 76 663 |
| Adjustments of special items | 414 | 3 403 | 27 857 | 4 271 |
| Adjusted EBITDA | 28 054 | 22 888 | 108 463 | 80 934 |
| EBITDA-margin | 36.3 % | 35.3 % | 29.8 % | 39.1 % |
| Adjusted EBITDA-margin | 36.8 % | 41.4 % | 40.1 % | 41.3 % |
| Amounts in NOK (thousands) | Q4'21 | Q4'20 | FY'21 | FY'20 |
| Adjusted EBITDA | 28 054 | 22 888 | 108 463 | 80 934 |
| Capitalized development expenses | 9 829 | 2 667 | 21 737 | 11 579 |
| Q4'21 | Q4'20 | FY'21 | FY'20 | ||
|---|---|---|---|---|---|
| Annual Recurring Revenue (ARR) (EoP) | TNOK | 266 843 | 204 589 | 266 843 | 204 589 |
| Recurring revenue | 96.1 % | 92.5 % | 94.9 % | 93.0 % | |
| Average Revenue per Customer (ARPC) | NOK | 26 668 | 25 246 | 26 994 | 23 063 |
| Churn rate (Annualized / R12m) | 6.1 % | 6.0 % | 6.3 % | 5.7 % |
Adjusted EBITDA - CAPEX margin 23.9 % 36.6 % 32.0 % 35.4 %
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