Sikri Group ASA (or “the company") increased revenues by 72 percent in the fourth quarter 2022 compared to the same period last year to NOK 272 million, primarily driven by the acquisition of Metria in the second quarter of 2022. On a currency neutral proforma basis, the company saw operational organic growth of 4 percent.
Adjusted EBITDA was NOK 48 million in the fourth quarter 2022, representing 18 percent adjusted EBITDA margin, unchanged compared to pro forma adjusted EBITDA in the same period in 2021.
“We are rapidly developing towards a more pure-play Software-as-a-Service company. At the end of the quarter, our annual recurring revenue (ARR) reached 373 million, up 8 percent compared to one year earlier. This means that our business has a high degree of scalability and high predictability,” said CEO of Sikri Group, Nicolay Moulin.
In the quarter, Sikri Group raised gross proceeds of NOK 100 million of new equity in a private placement. In November, the company divested Prognosesenteret, focusing the group’s structure and freeing up further capital.
“During 2022, we have improved our financial position considerably and we have a strong platform for organic growth driven by cross border synergies, new products as well as new sales and upsell,” Nicolay Moulin said.
Sikri Group experience high digitalization activity in in the public sector and reported 61 percent win-rate in the contract competition where the company participates in Norway. 75 percent of Sikri Group's revenue are recurring and recurring-like, and in the public segment, the annual churn rate is less than 1 percent.
“45 percent of our revenue comes from customers in the public sector, and in the fourth quarter our Public segment continued to perform particularly well as a result of major customer wins. Revenue growth was 17 percent, and the adjusted EBITDA margin was 28 percent. Our Private and Metria segments are still sensitive to the volume of real estate transactions, but even in a turbulent quarter, both segments continued to grow,” said Moulin.
Sikri Group ASA acquired the Swedish company Metria AB earlier in 2022 and has since then worked to confirm the synergy assumptions and to plan the integration. During the quarter, Metria signed long-term contracts with the Swedish Environmental Protection Agency worth SEK 430 million.
“These are landmark contracts, and we are also happy to see the synergy potential between Metria and our Norwegian businesses. We are building a strong sales organization across the group and seek to execute on the synergy potential. The strong tail wind from the digitization of public and private transaction processes continues,” said Moulin.
Financial highlights for the quarter:
- Proforma operational organic growth of 4% when neutralizing currency impacts
- Adjusted EBITDA for Q4 2022 was MNOK 48, up from MNOK 27 in Q3 2021, mainly due to the acquisition of Metria AB and higher subscription revenue in Public
- Annual recurring revenue (ARR) within the Group increased to MNOK 373 at the end of Q4 2022, up 8 percent from Q4 2021
- Net profit was NOK 44 million, affected by net financial loss of 15 million and a capital gain of NOK 49 million related to the divestment of Prognosesenteret.
- In Q4 2022, Sikri Group completed a private placement of MNOK 100
- Repaid borrowings of MNOK 181 during Q4 2022
Investors, analysts and media are welcome to follow a webcast presentation of the results today at 08:00. The presentation will be held by CEO Nicolay Moulin and CFO Camilla Aardal.
The presentation will be followed by a Q&A session, and viewers are encouraged to submit written questions during and after the presentation through the webcast player.
Webcast link: Webcast link
The report and presentation are available for download from Report and presentations and www.newsweb.no. The webcast will be available for replay immediately after the live stream is concluded.
For further queries, please contact:
Nicolay Moulin, CEO
Telephone: +47 905 91 983
Camilla Aardal, CFO
Phone: +47 97 10 51 55