Webstep — Earnings Release 2017

Nov 16, 2017

Webstep Q3 2017: Investing in new services and adding growth capacity

Webstep Q3 2017: Investing in new services and adding growth capacity

Oslo, 16 November 2017: Webstep ASA reports continued high demand and stable

revenue growth in the third quarter of 2017. Revenues grew both in Sweden and in

Norway, while EBITDA was impacted by slightly lower utilisation. Recruitment

activity was high and represents investment in expertise and capacity to secure

future growth within core services as well as new services.

Consolidated revenues in the third quarter of 2017 grew by 4.9 per cent from the

corresponding quarter last year and amounted to NOK 124.9 million. "We are

pleased to see that demand for IT experts remains high, particularly within core

digitalisation services. We have a solid backlog of high-end expert deliveries

and we are continuously recruiting to meet the demand and realise our growth

ambitions. In addition, we have taken important steps to grow our expertise

within new services such as Machine Learning, IoT and Analytics", says CEO

Kjetil Bakke Eriksen.

EBITDA for the quarter was NOK 7.1 million, compared to NOK 9.4 million last

year. The third quarter was characterised by a high number of employees in the

onboarding phase. Employees were replaced and investments were made to secure

future growth capacity, especially for new services. This had a slightly

negative impact on utilisation, mainly due to longer sales processes for new

services.

EBITDA for the first nine months of 2017 was NOK 51.5 million, compared to NOK

52.0 million in the same period of 2016. The EBITDA decrease is a consequence of

the lower capacity utilisation and extra personnel costs for employees in the

onboarding phase, as well as investment in new services.

The Initial Public Offering (IPO) of the company's shares was announced on 26

September and successfully completed on 11 October. The financial position has

been substantially strengthened after the IPO. The gross proceeds raised in the

transaction were NOK 120 million.

The overall market outlook is very robust, following the general trend with high

investment activity in digitalisation of private and public sector. This is

expected to drive continued high demand for Webstep's offering of IT expertise.

The company will have a strong focus on employer branding and recruitment going

forward in order to increase future growth capacity. Recruitment of 27 new

employees took place in Q3. These will be onboarded mainly during Q4 and Q1 and

will increase the billable capacity when entering 2018.

Presentation details

A presentation of the results will take place at 09:00 am CET today, at

Sparebank1 Markets, Olav V's gate 5, 0161 Oslo

Please register directly to corporateaccess@sb1markets.no.

The interim report and the presentation are enclosed and will also be available

at  https://investor.webstep.com/Investors

Contact details for further information:

Anders Løken, Chief Financial Officer

Cell: +47 977 69 200

Email: ir@webstep.com

Website: www.webstep.com

About Webstep:

Webstep ASA and its subsidiaries form the Webstep Group, a high-end provider of

IT consultancy services in Norway and Sweden. Since its incorporation in 2000,

the Webstep Group has offered IT services designed to address its customers'

software needs by creating functional custom-made digital tools and applications

optimizing the customers' business strategies. Webstep aims to be at the

forefront of the technological development and to assist its customers in their

digitalisation through the offering of cutting-edge IT expertise. The Webstep

Group's core digitalisation offering consists of digitisation, cloud

implementation, migration and integration, in addition to its other core focus

areas Internet of Things (IoT), machine learning and analytics. An important

part of the Webstep Group's strategy is to employ and offer only senior IT

consultants with significant experience. As of 30 June 2017, the Webstep Group

employed 393 employees, of which 350 were IT consultants. For more information

visit www.webstep.com (http://www.webstep.com).

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.