SoftwareONE Holding AG — Earnings Release 2021

Mar 4, 2022

Ørn Software Holding AS (ORN) - Fourth quarter 2021 financial results: Strong growth, focus on profitability improvement in 2022

Ørn Software Holding AS (ORN) - Fourth quarter 2021 financial results: Strong growth, focus on profitability improvement in 2022

4.3.2022 07:00:01 CET | Ørn Software Holding AS | Half yearly financial reports

and audit reports / limited reviews

Trondheim, March 4, 2022 - Ørn Software Holding AS today reported its results

for the fourth quarter 2021, and introduced new 2022 guiding for revenue,

adjusted EBITDA and CAPEX.

At the end of 2021, Ørn Software had NOK 220 million in annual recurring revenue

(ARR), a growth of 111 percent year-on-year. Operating revenue in the fourth

quarter was NOK 65.5 million, 184 percent higher than in the same period last

year. Adjusted EBITDA was NOK 15.0 million, implying an EBITDA margin of 18

percent. Cost of NOK 3.5 million related to Q3 2021 were accrued in Q4 2021.

Corrected for this, Q4 2021 adjusted EBITDA margin was 23 percent. Reported

EBITDA was NOK 13.0 million in Q4 2021. Cash flow from operations was NOK 8.7

million in Q4 2021 (0.3 million in Q4 2020).

Ørn Software is a leading Nordic Software-as-a-Service (SaaS) company and is

supporting a wide range of industries with value creation through a

comprehensive suite of best-of-breed worksite management software.

"2021 was a transformational year for Ørn Software. Not did we continue to grow

our business organically, but also welcomed three fantastic new acquired

companies to our group: Facilit, Landax and Rapal. We now have a strong

foundation in terms of products, technology, and organization when we in 2022

focus more on further accelerating sales and significantly grow our cash

earnings by improving profitability. We well work on realizing synergies on

cross sales and news sales and at the same time work more efficiently," said

Sten-Roger Karlsen CEO of Ørn Software.

Ørn Software introduces the following financial guiding for 2022:

* Revenue: Around NOK 270 million (194 million in 2021)

* Adjusted EBITDA margin: 28-30 percent (24 percent in 2021)

* CAPEX: Around 16 percent of revenue (17 percent in 2021)

* Positive full year cash flow after payment of interest (before adjustment for

any special items)

"Many of our products have long sales cycles, and our sales pipeline is

gradually building very well. Hence, we expect to see accelerating growth in ARR

and revenue over time. Our SaaS based business model is characterized by high

operational leverage, which means that the outlook for increased margins and

cash flow is very positive. As we have said earlier, our target is to grow ARR

organically to NOK 430 million, and to reach EBITDA margin above 40 percent by

the end of 2025, said Sten-Roger Karlsen.

Ørn Software's reported Net result in Q4 2021 was negative with 20.5 million

(-3.1 million in Q4 2020). This was affected negatively by interest expenses

related to increased net debt and by an increase of NOK 19.7 million in

depreciations and amortizations compared to Q4 2020, related to acquisitions,

according to NGAAP.

WEBCAST PRESENTATION

In connection with the results, Ørn Software will hold an English language

webcast presentation today March 4, 2022 at 09:00 (CET), followed by a live Q&A

session. Viewers are welcome to post written questions through the webcast

player.

Representatives from Ørn Software will be CEO Sten-Roger Karlsen and CFO Vidar

André Løken.

The webcast will be available live and as a recording on the following link:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220304_1

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.

DISCLOSURE REGULATION

?This information is such that Ørn Software Holding AS is required to disclose

in accordance with the EU Market Abuse Regulation.

?This information was submitted for publication by the Company's CFO, Vidar

Andre Løken.

CONTACTS

* Sten-Roger Karlsen, CEO Ørn Software, +47 922 62 321, srk@ornsoftware.com

* Vidar Andre Løken, CFO Ørn Software, +47 952 60 926, val@ornsoftware.com

ABOUT ØRN SOFTWARE HOLDING AS

Ørn Software is a Nordic provider of SaaS solutions enabling efficient

operations and maintenance across a wide range of asset-heavy industries,

including real estate, manufacturing, food & beverages, and aquaculture.

The Group's software provides customers with improved insight through

data-driven operations and contributes to increased efficiency and reduced costs

through digitalization of rental processes, data-driven maintenance scheduling

and energy optimization. All of the above contribute to the lengthening of

property and equipment lifespan, a key component of Ørn Software's value

proposition. Furthermore, the Group's offering enables customers to reduce their

environmental footprint and provides digital tools to meet reporting and

regulatory requirements.

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17847696/1250/1670/Download%20announcement

%20as%20PDF.pdf

Orn Software Q4 2021 report.pdf -

https://kommunikasjon.ntb.no/ir-files/17847696/1250/1668/Orn%20Software%20Q4%202

021%20report.pdf

Orn Software Q4 2021 presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17847696/1250/1669/Orn%20Software%20Q4%202

021%20presentation.pdf