Company Announcements

HØNEFOSS, Norway, May 7, 2025 /PRNewswire/ -- SmartCraft ASA, the leading Nordic provider of mission-critical SaaS solutions to small and mid-sized companies in the construction sector, today reported its results for the first quarter of 2025, with a year-on-year ARR growth of 23 percent to NOK 494 million, positively affected by acquisitions.

The organic revenue growth of NOK 6.3 percent was negatively affected by the soft macroeconomic development leading to customer revenue churn increasing to 9.3 percent driven by bankruptcies, and downgrades driven by reduced activity among existing customers. New sales continued to perform well.

First quarter revenue was NOK 137 million, a growth of 25 percent. Adjusted EBITDA-capex was NOK 37 million, representing a margin of 27 percent, down from 33 percent in the same period in 2024. The margin decline is explained by a dilution of 4.5 percentage points from the Clixifix and Locka acquisitions, and the SmartCraft Spark platform development project, which curbs the margin with 1.9 percentage points. The margin increased by 3 percentage points compared to Q4 2024.

"In the most challenging market for the construction industry in decades, SmartCraft continues to deliver well on what we can control, namely our sales activity and cost consciousness. Gross growth in new customers grew 16 percent in the first quarter compared to the same period last year. This means that we continue to deliver growth in, albeit at a lower rate than our ambition, and strong margins," said CEO of SmartCraft Gustav Line.

The potential for digitalization of the construction industry remains massive, with a high share of companies still not using software solutions tailored to their industry.

"As for most industries today, the timing of the macroeconomic recovery remains uncertain. However, when the market eventually comes back, we are tuned for a massive pickup as we expect customer churn to decrease, customers to start upscaling their use of our tools, and organic growth to return to a higher level. With our scalable business model, this will also drive profit margins upwards. We are still in an excellent position to deliver on our medium-term financial targets of 15-20 percent organic growth with increasing margins," said Gustav Line.

The first quarter 2025 report and presentation materials are enclosed.

WEBCAST PRESENTATION

Investors, analysts, and journalists are welcome to join to an English language webcast presentation of the report on the same day, Wednesday 7 May 2025, at 08:00 CET.

Webcast link:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20250507_7 

Presenters:

• Chief Executive Officer Gustav Line
• Chief Financial Officer Kjartan Bø

Viewers are welcome to submit written questions through the webcast player during and after the presentation. A recording of the presentation will be available on the same link and at smartcraft.com/investor-relations/ after the live stream is concluded.

DISCLOSURE REGULATION

This information is considered to be inside information pursuant to the EU Market Abuse Regulation, and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

CONTACTS

* Gustav Line, CEO, +47 952 67 104, gustav.line@smartcraft.com 

* Kjartan Bø, CFO, +47 410 27 000, kjartan.bo@smartcraft.com 

ABOUT SMARCRAFT

SmartCraft is the leading Nordic provider of mission-critical SaaS solutions to SMEs in the construction sector, increasing their productivity, margins, and resource efficiency. The Group currently has more than 13 400 customers and 270 employees distributed across Norway, Sweden, Finland and UK. SmartCraft was listed on the Oslo Stock Exchange in June 2021.

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