SmartCraft ASA — Earnings Release 2022

Aug 25, 2022

Correction: SmartCraft ASA (SMCRT) - First half and second quarter 2022 financial results

Correction: SmartCraft ASA (SMCRT) - First half and second quarter 2022 financial results

25.8.2022 10:33:59 CEST | SmartCraft ASA | Half yearly financial reports and

audit reports / limited reviews

25 August 2022 - The correction is only related to the Statement by the Board of

Directors and Chief Executive Officer that was not included in the first

published version.

SmartCraft ASA today reported its results for the second quarter of 2022, ending

the period with annual recurring revenue (ARR) of NOK 296.1 million, which

represents a 12-month growth of 32 percent. Organic growth was 20% compared to

Q2 2021. Revenue in Q2 2022 was 81.6 million (+27.6% Y/Y), of which 96 percent

was recurring.

"We are pleased to report continued strong growth in our recurring revenue, and

we have once again delivered well on our strategy to drive growth through both

organic initiatives and acquisitions. The organic growth in annual recurring

revenue was 20 percent in the second quarter, driven not only by good results in

terms of new-sale and up-sale, but also a low revenue churn at an annual rate of

5 percent," said Gustav Line, CEO of SmartCraft.

SmartCraft's adjusted EBITDA margin was 36.2 percent in Q2, which can be

compared with 47.1% in Q2 2021. A change in accounting principle related to

holiday pay accruals distorts the comparison figures. If the current principle

was applied for 2021, the Q2 2021 EBITDA margin would have been 43.7%. Margins

were affected by phasing of marketing investments, and a dilution effect as a

result of acquisitions as well as investments in certain temporary costs related

to recruitment and personnel changes to optimize and synergize the organization

for future scale and growth.

"We have decided to invest for future revenue growth and initiatives to scale

the organization and our products. Without these one-time investments and

initiatives, the adjusted EBITDA margin is well above 40% and in line with

previous year."

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 construction industry is one of the least digital, and in SmartCraft we go

to work every morning with a desire to help craftsmen and contractors to

streamline their workday so that they can spend time on productive work - and

not the least help them avoid paperwork during evenings and weekends. The

momentum in the market is strong, and we expect it to remain solid even if the

macro environment becomes more uncertain. The daily cost for a SmartCraft client

is very low, so we create great customer value from day one," 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.

"Our momentum is strong in a market with high potential, and with close to 100

percent recurring revenue we have long visibility in terms of our financial

development. We are confident in achieving our medium-term targets. Our primary

focus is organic growth in the Nordics through upselling to existing customers,

by winning new customers, and by cross-selling on our customer bases. Secondly,

we continue our successful M&A strategy, seeking opportunities both in existing

and new geographies. We are currently in dialogue with several companies," said

Gustav Line.

Corrected version of the company's Interim report follows enclosed and are

available on the company web site.

WEBCAST PRESENTATION

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

webcast presentation of the report today, Thursday 25 August 2022, at 09:30 CET.

Webcast link:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220825_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.no

* Kjartan Bø, CFO, +47 410 27 000, kjartan.bo@smartcraft.no

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 Q2 and first half year 2022 presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847761/1695/2274/SmartCraft%20ASA%20Q2%2

0and%20first%20half%20year%202022%20presentation.pdf

Correction SmartCraft ASA Q2 and first half year 2022 report.pdf -

https://kommunikasjon.ntb.no/ir-files/17847761/1695/2276/Correction%20SmartCraft

%20ASA%20Q2%20and%20first%20half%20year%202022%20report.pdf

ORIGINAL RELEASE

SmartCraft ASA (SMCRT) - First half and second quarter 2022 financial results -

https://kommunikasjon.ntb.no/announcement?publisherId=17847761&announcementId=16

92⟨=en