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: