Spir Group ASA ("Sikri") increased revenues by 56% in the third quarter of 2022 compared to the same period last year to NOK 272 million, primarily driven by the acquisition of Metria in the second quarter 2022. Pro forma revenue increased with 8 percent on a currency neutral basis and adjusted for one-off pass-through revenue of NOK 11 million from an election related project in 2021.
Adjusted EBITDA was NOK 50 million in the third quarter 2022, representing 18% adjusted EBITDA margin compared to pro forma adjusted EBITDA margin of 20 percent in same period in 2021. Reported EBITDA margin, negatively affected by NOK 8 million of costs related to the process to uplist on Oslo Børs, M&A and integration costs, was 16 percent (18%).
"We are happy to report good underlying revenue growth and strong profitability for the third quarter. As a leading prop tech company in Norway and Sweden, and an important provider of digital solutions for the property market, the improved real estate market volumes provide tailwind for us. We also experience high
digitalization activity in in the public sector, and I am proud to report 60 percent win-rate in the contract competition we participate in," said CEO of Sikri, Nicolay Moulin.
75 percent of Sikri's revenue are recurring and recurring-like, and in the public segment, the annual churn rate is only 1 percent.
"We are rapidly developing towards a more pure Software-as-a-Service company. At the end of the quarter, our annual recurring revenue (ARR) reached 359 million, up 9 percent compared to one year earlier. This means that our business has a high degree of scalability and high predictability," said Nicolay Moulin.
Spir 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.
"We have by far confirmed the assumptions we had on the synergy potential between Metria and our Norwegian businesses. 15 products and services with large cross-sale potential have been identified. From now on, we move full steam ahead
with execution of the integration, and building a strong sales organization across the group", said Nicolay Moulin.
In the third quarter, Sikri raised in total NOK 210 million of new equity. In November, the company entered into an agreement to divest Prognosesenteret, focusing the group's structure and freeing up further capital.
"Our financial position is improved considerably, and we have a strong platform for organic growth supported by our prudent M&A strategy focusing on selected bolt-on acquisitions with high synergy potential. Our momentum is strong, and we have a positive view on the rest of 2022 and the coming year," Nicolay Moulin said.
Financial highlights for the quarter:
- Proforma operational organic growth of 8% when neutralizing currency impacts
and adjusting for 2021 one-off pass-through revenue from election project. - Adjusted EBITDA for the third quarter was MNOK 50, up from MNOK 22.5 in Q3 2021, mainly due to the acquisition of Metria AB, but also positively impacted by improved profitability in the Public segment.
- Annual recurring revenue (ARR) within the Group increased to MNOK 359 at the end of Q3 2022, up 9% from Q3 2021
- Win rate in the Public segment was 60% YTD. Recurring / subscription revenues in the Public segment grew 19% in Q3 2022 compared to Q3 2021.
- In the third quarter 2022, the Spir Group completed two equity raises ; a retail offering of MNOK 10.6 and a private placement directed at the largest shareholders of the company, raising MNOK 200 in gross proceeds. Post Q3, the total gross proceeds of MNOK 217 have been applied to the bridge loan.
- After the end of the quarter, Sikri entered into an agreement to divest its ownership in Prognosesenteret (Prognosesenteret AS and Prognoscenteret AB). The agreement sharpens the Spir Group's strategic focus on facilitating and integrating the property life cycle through SaaS-based information and data services.
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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
The report and presentation are available for download from
https://www.sikriholding.com/reports-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
Chief Executive Officer
Tel: +47 90 59 19 83
Email: Nicolay.moulin@sikri.no
Camilla Aardal
Chief Financial Officer
Tel: +47 97 10 51 55
Email: Camilla.aardal@sikri.no
