SmartCraft ASA

Earnings Release • Feb 15, 2023

SmartCraft ASA (SMCRT) - Q4 2022: Another record-breaking quarter and solid market outlook

SmartCraft ASA (SMCRT) - Q4 2022: Another record-breaking quarter and solid market outlook

15.2.2023 07:02:32 CET | SmartCraft ASA | Half yearly financial reports and

audit reports / limited reviews

15 February 2023 - SmartCraft ASA, the leading Nordic provider of

mission-critical SaaS solutions to small and mid-sized companies in the

construction sector, today reported its results for the fourth quarter of 2022,

ending the period with annual recurring revenue (ARR) of NOK 318 million, which

represents a 12-month growth of 19 percent. Organic growth was 17 percent.

Reported revenue was NOK 91 million (+19 percent), of which 96 percent was

recurring. Adjusted EBITDA margin increased to 41 percent.

"In Q4 we present another record-breaking quarter and for the 7th quarter in a

row we continue to deliver on guided revenue and margin. This shows the strength

of our business model and that our solutions have a good market fit even in

turbulent times. Our solutions give our customers a competitive edge and are

increasingly important when the market is changing and margins are under

pressure", said CEO of SmartCraft Gustav Line.

Even if the construction industry as a whole experiences challenging market

conditions, SmartCraft does not see demand abating. The solutions help customers

operate efficiently and increase their profits, and with a subscription cost as

low as NOK 7 per day/user, SmartCraft is able to keep churn rates very low at 6

percent.

"Our core customer group are SMEs, working mainly with upgrades, renovation and

services of existing buildings. Since they are only to a small extent dependent

on large new building projects, they are more resilient in turbulent times.

Additionally, our largest customer group consists of skilled workers like

electricians and plumbers. They experience great demand from different energy

saving initiatives. User data from our solutions supports this and indicates

that our customers' project activity grew throughout the fourth quarter, a trend

that has continued into 2023" said Gustav Line.

Since SmartCraft became listed on Oslo Børs in June 2021, the number of

customers has increased by 33 percent through a mix of organic growth and

acquisitions. The company targets an organic growth of 15-20 percent per year in

the medium term, and increased margins due to the scalability of the business.

"We remain confident in reaching our targets. The SmartCraft sales model is

highly efficient, and we see that the customer acquisition cost has a payback

time of only one year, which combined with the low churn and the high

incremental cash contribution from new customers means that the return on

investments in sales are very attractive. Our profitability and cash generation

continues to be high. SmartCraft's SaaS based business model implies a very high

gross margin, and we can clearly observe the scalability of our profit model.

With most of our subscriptions being paid up front, the growth comes with a low

risk", said Gustav Line.

WEBCAST PRESENTATION

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

webcast presentation of the report today, Wednesday 15 February 2023, at 08:00

CET.

Webcast link:

https://channel.royalcast.com/landingpage/hegnarmedia/20230215_1/

Presenters: CEO Gustav Line, CFO Kjartan Bø, and CMO Katja Widlund

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://smartcraft.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 Segment history.pdf -

https://kommunikasjon.ntb.no/ir-files/17847761/2109/2831/SmartCraft%20ASA%20Segm

ent%20history.pdf

SmartCraft ASA Q4 2022 Report.pdf -

https://kommunikasjon.ntb.no/ir-files/17847761/2109/2832/SmartCraft%20ASA%20Q4%2

02022%20Report.pdf

SmartCraft ASA Q4 2022 Presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847761/2109/2834/SmartCraft%20ASA%20Q4%2

02022%20Presentation.pdf