SmartCraft ASA, which provides SaaS solutions for the construction sector, announced a significant increase in its second-quarter revenues for 2024, achieving record numbers with sustained high margins.
The company reported an annual recurring revenue (ARR) of 461 million Norwegian Kroner, marking a 29 percent growth compared to the previous year. Its organic ARR also saw an 11 percent increase.
The company's revenue for the quarter reached 133 million Norwegian Kroner, a 32 percent increase year-over-year, with 90 percent of that being recurring revenue. This includes a 7 percentage point dilution from recent acquisitions.
Despite these new additions, SmartCraft maintained an adjusted EBITDA-capex margin of 29 percent, although this was impacted negatively by 3 percentage points due to the acquired companies. The churn rate for the quarter was reported at 8 percent, a slight rise of 0.5 percentage points from the first quarter of 2024.
The CEO of SmartCraft, Gustav Line, commented on the company's performance, stating, "We extended our long-term growth track record in the second quarter with a strong combination of organic growth and acquisitions. Operating margins stayed strong, and given the tough market conditions in the construction industry, we are pleased with this steady performance."
He further emphasized the resilience of their primary customer base, small and medium-sized businesses in the renovation segment, which have been less impacted by broader economic challenges than the wider construction sector.
SmartCraft's growth strategy included expanding its presence in Sweden through the acquisition of Locka and entering the UK market by acquiring Clixifix. The company has been recognized for its successful integration of new businesses, which typically leads to improved profit margins and an increase in recurring revenues. The goal is to replicate this success with the recent acquisitions of Locka and Clixifix.
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