SmartCraft ASA

Earnings Release • Nov 1, 2022

SmartCraft ASA (SMCRT) - Third quarter 2022 financial results

SmartCraft ASA (SMCRT) - Third quarter 2022 financial results

1.11.2022 07:00:01 CET | SmartCraft ASA | Half yearly financial reports and

audit reports / limited reviews

1 November 2022 - SmartCraft ASA today reported its results for the third

quarter of 2022, ending the period with annual recurring revenue (ARR) of NOK

303.6 million, which represents a 12-month growth of 17 percent. Organic growth

was 16 percent compared to the third quarter 2021. Revenue in the third quarter

2022 was 82.4 million (+16 percent organic growth), of which 97 percent was

recurring. Adjusted EBITDA was 38.8 percent in the quarter an improvement from

36.7 percent in the same period in 2021.

"SmartCraft continues to deliver on our strategy of profitable organic growth

and accretive bolt-on acquisitions. I am particularly satisfied with the strong

operating margin and high cash flow in the third quarter, providing evidence of

the scalability and strength of our business model," said Gustav Line, CEO of

SmartCraft.

SmartCraft continues to move customers over to SaaS based subscription

contracts, leading to 97 percent recurring revenue share in the third quarter.

The recurring revenue growth was 19 percent in the third quarter compared to the

third quarter 2021. Annualized churn remained low, at 5 percent.

"We are extremely focused on customer satisfaction and ease of use for our

customers. This is key to drive new sales and to reduce churn even further,"

said Gustav Line.

SmartCraft is a leading Nordic provider of mission-critical SaaS solutions to

small and mid-sized companies in the construction sector, a market with a

potential of above NOK 10 billion, growing annually at a double-digit rate.

"The market for our solutions remains strong, and the demand for digitalization

remains strong despite a gloomy macro picture and rising concerns around

slowdown in the construction industry. Our customers are mainly small and medium

sized enterprises, and this segment is historically less affected by economic

slowdown. With almost all our revenue being recurring, we have long visibility

in terms of financial development. Furthermore, 19% growth in transactional

revenue in the quarter shows that our customers are performing well," said

Gustav Line.

SmartCraft's ambition is to drive consolidation with regards to software for the

Nordic construction industry. Right after the end of the third quarter, the

acquisition of Inprog was announced, adding NOK 5 million of ARR (this is not

included in the 303,6 MNOK ARR at quarter end).

"Inprog is a great addition to our portfolio of services for electricians. We

are now working on capturing synergies from the different solutions under our

umbrella, and we expect to see further benefits in terms of product features and

profitability going forward. Our search for attractive M&A objects continues,

and we have several prospects for accretive acquisitions in sight," said Gustav

Line.

SmartCraft targets 15-20 percent annual revenue growth in the medium term, with

the addition of bolt-on acquisitions. Margins are expected to increase due to

scalability of the business.

WEBCAST PRESENTATION

Investors, analysts and journalists are welcome to join to an English language

webcast presentation of the report today, Tuesday 1 November 2022, at 08:00 CET.

Webcast link:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20221101_2

Presenters: CEO Gustav Line, CFO Kjartan Bø, CTO Christian Saleki and CEO of

Bygglet Hanna Konyi

Viewers are welcome to submit written questions through the webcast player

during and after the presentation. A recording of the presentation will be

available on the same link and at

https://smartcraftready.com/investor-relations/ after the live stream is

concluded.

DISCLOSURE REGULATION

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation, and is subject to the disclosure requirements pursuant

to section 5-12 of the Norwegian Securities Trading Act.

The stock exchange announcement was published by the contact person, at the date

and time as set out above.

CONTACTS

* Gustav Line, CEO, +47 952 67 104, gustav.line@smartcraft.com

* Kjartan Bø, CFO, +47 410 27 000, kjartan.bo@smartcraft.com

ABOUT SMARTCRAFT ASA

SmartCraft is the leading Nordic provider of mission-critical SaaS solutions to

SME's in the construction sector. The company's business model is highly

scalable, based on 95% recurring revenue and low churn. The construction sector

is among the least digitalized industries and represents a NOK 10bn software

market in the Nordics, growing at a double-digit rate. SmartCraft's solutions

help customers to increase their productivity, margins, and resource efficiency.

ATTACHMENTS

SmartCraft ASA Q3 2022 Report.pdf -

https://kommunikasjon.ntb.no/ir-files/17847761/1850/2506/SmartCraft%20ASA%20Q3%2

02022%20Report.pdf

SmartCraft ASA Q3 2022 Presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847761/1850/2507/SmartCraft%20ASA%20Q3%2

02022%20Presentation.pdf