SmartCraft ASA — Earnings Release 2021

Feb 23, 2022

SmartCraft ASA (SMCRT) - Fourth quarter 2021 financial results

SmartCraft ASA (SMCRT) - Fourth quarter 2021 financial results

23.2.2022 07:00:00 CET | SmartCraft ASA | Half yearly financial reports and

audit reports / limited reviews

23 February 2022 - SmartCraft ASA today reported its results for the fourth

quarter 2021, ending the period with annual recurring revenue (ARR) of NOK 266.8

million, which represents a growth of 30% since Q4 2020. Revenue in the fourth

quarter was 76.2 million (+38% Y/Y), of which 96 percent was recurring. The

organic growth in recurring revenue was 18 percent compared to Q4 2020, whereas

organic growth in total revenue was 14 percent.

SmartCraft's adjusted EBITDA increased 23 percent in Q4 2021 compared to Q4

2020, and the adjusted EBITDA margin was 37 percent compared to 41 percent last

year.

"There is a large untapped demand in the Nordics for easy-to use software

solutions helping contractors and craftsmen streamlining their workday.

SmartCraft is rapidly building a very robust Software-as-a-service business with

recurring revenue through acquisitions, improved products and services and great

sales work. I am very happy to report that we ended 2021 on a strong note, with

rapid revenue- and ARR growth, stable low customer churn, and sustained high

profitability and strong cash flow, said Gustav Line, CEO of SmartCraft ASA.

SmartCraft made three acquisitions in the period December 2020 to July 2021. The

acquired companies have somewhat lower margins that the rest of SmartCraft,

diluting reported EBITDA margins in 2021.

"The acquired companies Congrid, Kvalitetskontroll and HomeRun, are excellent

businesses, and we are well on the way with integrating them into SmartCraft.

Increased size allows larger scale effects, and we expect the acquired

businesses to improve their operating margins over time. Additionally, we have,

as communicated earlier, continued to execute on product development and sales

initiatives to further accelerate growth. Although these activities curb our

EBITDA margin somewhat short term, we already early in 2022 see positive effects

from these initiatives," said Gustav Line, CEO of SmartCraft ASA.

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 NOK 10.5 billion, growing at double digit rate.

"We have established a solid platform for continued long-term growth, and

continue to strengthen our sales and product and technology development

capabilities. Following the IPO in June 2021 we are virtually debt free, and

with our strong cash flow from operations, we are in position to remain the

champion in the attractive segment we operate. Our medium-term financial targets

stand firm with 15-20 percent annual organic growth, with the addition of

bolt-on M&A, whereas we expect increasing EBITDA margins due to scalability of

the business," said Gustav Line.

WEBCAST PRESENTATION

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

webcast presentation of the report today, Wednesday 23 February 2022, at 08:00

CET.

Webcast link:

https://smartcraftready.com/investor-relations/reports-and-presentations/present

ation-of-fourth-quarter-2021-results/

Presenters: CEO Gustav Line and CFO Kjartan Bø

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 94% 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 Q4 2021 Report.pdf -

https://kommunikasjon.ntb.no/ir-files/17847761/1230/1630/SmartCraft%20Q4%202021%

20Report.pdf

SmartCraft Q4 2021 Presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847761/1230/1632/SmartCraft%20Q4%202021%

20Presentation.pdf