Unofficial translation of the company release on
Welcome to join an investor call on
Figures in parenthesis refer to the comparable period in the previous year, unless otherwise stated.
nJanuary-March 2024 (Q1):
n-
n
- Annual recurring revenue (ARR)1) grew by 10.0% to
EUR 33.8 million (30.7).
n - Recurring revenue2) grew 7.4 % and was
EUR 8.1 million (7.5).
n - Revenue grew 4.8 % and was
EUR 8.6 million (8.2).
n - Adjusted EBITDA3) was
EUR 2.7 million (3.0), 30.9% of revenue (36.7%). Adjustments to EBITDA wereEUR 80 thousand .
n - Adjusted EBIT3) was
EUR 1.7 million (2.3), or 19.9% of revenue (27.6%).
n - Earnings per share were
EUR 0.21 (0.32).
n Admicom strengthened its forerunner position in construction technology solutions by acquiring asset management and IoT-solution companyTrackinno Oy . Trackinno has been consolidated in the Group financials from the acquisition date19 Jan 2024 . In the first quarter, Trackinno generatedEUR 117 thousand to Group’s revenue andEUR 551 thousand to Group’s ARR.
n- Helena Marjokorpi (MSc) was appointed as Head of People Operations and a member of Admicom Oyj’s Leadership Team as of
1 January, 2024 .
n
1) Annual Recurring Revenue = Monthly recurring revenue (MRR) at the end of the period multiplied by 12 and added with revenues from annual adjustment fees and financial statement fees during last twelve months.
2) Recurring Revenue = Monthly recurring revenue added with revenues from annual adjustment fees and financial statement fees.
n3)
Key figures
nn ADMICOM GROUP n( | nn 1-3/2024 n | nn 1-3/2023 n | nn Change-% n | nn 2023 n | n
n ARR, MEUR n | nn 33.8 n | nn 30.7 n | nn 10.0% n | nn 32.5 n | n
n Revenue n | nn 8,605 n | nn 8,208 n | nn 4.8% n | nn 34,321 n | n
n Recurring revenue n | nn 8,054 n | nn 7,496 n | nn 7.4% n | nn 31,936 n | n
n Adjusted EBITDA n | nn 2,657 n | nn 3,009 n | nn -11.7 % n | nn 12,800 n | n
n % of revenue n | nn 30.9% n | nn 36.7% n | nn | n 37.3% n | n
n EBITDA n | nn 2,577 n | nn 3,009 n | nn -14.4% n | nn 12,800 n | n
n % of revenue n | nn 29.9% n | nn 36.7% n | nn | n 37.3% n | n
n Adjusted EBIT n | nn 1,713 n | nn 2,263 n | nn -24.3% n | nn 8,823 n | n
n % of revenue n | nn 19.9% n | nn 27.6% n | nn | n 25.7% n | n
n EBIT n | nn 1,633 n | nn 2,263 n | nn -27.8% n | nn 8,823 n | n
n % of revenue n | nn 19.0% n | nn 27.6% n | nn | n 25.7% n | n
n Profit for the period, n | nn 1,071 n | nn 1,595 n | nn -32.9% n | nn 6,317 n | n
n % of revenue n | nn 12.4% n | nn 19.4% n | nn | n 18.4% n | n
n Earnings per share, EPS, EUR n | nn 0.21 n | nn 0.32 n | nn -32.9% n | nn 1.27 n | n
n Employees at the end of the period n | nn 279 n | nn 258 n | nn | n 271 n | n
CEO Petri Kairinen:
nIn the first quarter of 2024, we continued the determined execution of our growth strategy. As unified
Our annual recurring revenue (ARR) increased by 10% year-on-year, where Trackinno's impact was approximately 1.7%-points. Our new sales was reasonably good considering the circumstances, and we gained clearly over one hundred new customers, from which an increasing amount procured several of our products. The market situation in the Finnish construction sector continued to be difficult. Although the peak in interest rates is estimated to be behind us, there is still no significant improvement in sight in the construction sector. Churn remained at higher-than-normal level as predicted, and bankruptcies continued to stand out. Happily, in terms of the total value of contract terminations, the first quarter was lower than any of the quarters in 2023.
nIn accordance with our guidance, this year will be a year of modest growth for us, and especially in the second quarter, the amount of volume-based annual adjustment fees from customers will be lower than last year, which will also erode profitability. The profitability of the whole year will be maintained by the second and third quarters which are typically strong due to seasonality. Profitability is further supported by tight cost control and the flattening of personnel numbers. The increase in personnel in the first quarter is mostly due to the acquisition of Trackinno.
nWe will continue to build the foundation of our growth strategy with steady steps, aiming for the next phase of accelerated growth starting in 2025. As visible steps for customers, we introduced a modern and customizable dashboard view for Ultima customers in the beginning of April. This new front page, which is based on single sign-on and combines views of different products, will be shared by the
In terms of acquisitions, we are constantly researching targets that fit our strategy both in
Outlook
n
Financial Guidance 2024
Financial guidance given in relation to financial statements release on
Annual Recurring Revenue (ARR) is expected to grow in 2024 by 5-10%. ARR in 2023 was
Total revenue is expected to grow from 2023 level. Total revenue in 2023 was
Adjusted EBITDA is expected to be 32-37% of revenue.
n
Themes affecting revenue and profitability
The company sees significant growth opportunities in its software solutions as well as upsell and cross-selling to existing customers, but the economic downturn in the construction industry causes uncertainty in the development of new sales in 2024 and keeps customer churn high especially due to insolvencies. The company continues to transfer capability from external software development services to its internal use, which also reduces revenues.
nThe pricing of Admicom Ultima product (formerly Adminet) and accounting services is based on a monthly fee determined by the customer's revenue. Invoicing is reviewed when the customer's actual revenue of the financial year deviates from the forecast. This annual adjustment fee item is typically invoiced five months after the end of the customer's financial year. Due to the decreased customer revenues, we estimate that annual adjustment fees will be approximately
Adjustments for adjusted EBITDA are material items outside the normal course of business related to e.g. acquisitions or other one-off transactions.
nFinancial publications:
nThe company will publish the H1 report on
Board of Directors
Additional information:
CEO
petri.kairinen@admicom.com
+358 40 832 1832
Satu Helamo
CFO
satu.helamo@admicom.com
+358 45 633 7710
Approved advisor:
+358 09 612 9670
© STT Info Finland, source