Spir Group ASA increased revenues by 9 percent in the second quarter of 2023 compared to the same quarter last year to NOK 290 million, primarily driven by a strong quarter for the company’s mission critical software for the public sector as well as growth for Ambita, delivering real estate data in the Group’s Private segment.
Adjusted EBITDA was NOK 54 million in the second quarter 2023, representing a 19 percent adjusted EBITDA margin, up from 17 percent in the same period in 2022. The margin improvement is mainly due to growth in the Public segment and an improved revenue mix in the Private segment, in addition to overall cost efficiency in the Group. Reported EBITDA increased by 118 percent to NOK 49 million.
“Spir Group performed very well in the second quarter, with solid growth across most of the business and overall profit improvement. With market-leading positions in Norway and Sweden within mission critical public sector solutions and real estate data & geo information, two attractive areas with significant ongoing digitalization efforts, the company has a great potential for consistent growth and margin improvement going forward,” said Per Haakon Lomsdalen, who started in the position as CEO of Spir Group in early August 2023.
The main contributors to the overall growth were the Public and Private segments, which grew revenues by 14 percent and 9 percent, respectively. The revenue growth in the Public segment was driven by the steady, high win rate in public tenders, increasing ARR and a higher level of consulting revenues. The Private segment grew well in transactional real estate revenues as well as in own SaaS solution revenues.
“The Public segment in Norway performed particularly well with significant customer wins and good cost control resulting in 28 percent adjusted EBITDA margin, up from 25 percent last year. Our Private segment delivers well not only helped by a healthy volume of real estate objects put up for sale, but also due to good customer reception among banks, lawyers and real estate agents for data enriched innovative new products and services,” said Lomsdalen.
In Sweden, Metria delivered a flat quarter in terms of revenue in local currency (up 5 percent in NOK) compared to the same period last year despite a weak real estate market in Sweden. Early in the quarter, Spir Group entered into an agreement to divest Metria’s planning & surveying business area (P&S), focusing further on scalable software and software-related services for SEK 52.5 million.
“Most of our business is now based on Software-as-a-Service model, with 85 percent of our revenue regarded as recurring or recurring-like. ARR increased by 9 percent year-over-year to NOK 383 million at quarter end, and we seek to establish a top-notch sales culture and organization to continue to grow going forward,” said Lomsdalen.
Financial highlights for Q2 2023 (Y/Y change)
- Revenue MNOK 290, up 9 percent
- Adjusted EBITDA MNOK 54 up from MNOK 45
- Reported EBITDA NOK 49, up from NOK 23
- Annual recurring revenue (ARR) within the Group increased to MNOK 383 at the end of Q2 2023, up 9 percent
- Divested Metria’s planning & surveying business area for MSEK 52.5 in April 2023
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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 Per Haakon Lomsdalen 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.
For further queries, please contact:
Per Haakon Lomsdalen
Chief Executive Officer
Tel: +47 90 27 19 18
Email: Per.Lomsdalen@sikri.no
Camilla Aardal
Chief Financial Officer
Tel: +47 97 10 51 55
Email: Camilla.aardal@sikri.no