rn Software Holding AS (ORN) – First Quarter 2022 Financial Results: Accelerating Growth and Improving Profitability

20.5.2022 07:00:01 CEST | Ørn Software Holding AS | Half yearly financial
reports and audit reports / limited reviews

Ørn Software Holding AS today reported its results for the first quarter 2022
reporting accelerated organic growth and improved profitability margins.

Ørn Software is a leading Nordic Software-as-a-Service (SaaS) company,
supporting a wide range of industries with value creation through a
comprehensive suite of best-of-breed worksite management software. 

At the end of Q1 2022, Ørn Software had NOK 237.9 million in annual recurring
revenue (ARR), a growth of 91.7 percent compared to Q1 2021. Organic growth was
22.4 percent, 11.8 percentage points higher than in Q4 2021. Quarter-on-quarter
organic growth was 9.3 percent. 

Ørn Software had revenues of NOK 65.1 million in the first quarter 2022, a
growth of 109 percent compared to the same period in 2021, and an adjusted
EBITDA margin of 29.4 percent, slightly up compared to the same period in 2022. 

"Our key priorities for 2022 are to accelerate revenue growth and improve
profitability. During the first quarter we landed several landmark contracts,
and we have at the same time successfully optimized our prices while managing
churn well," said CEO of Ørn Software Sten-Roger Karlsen. 

While Ørn Software has undertaken a range of acquisitions during 2020 and 2021,
focus is now on realizing synergies. 

"We have now finalized our plan to further realize revenue and cost synergies
during the rest of 2022 and onwards. Execution is already ongoing, which means
that we are well on track to improve our adjusted EBITDA margin from 29 percent
in 2021 to our target of 32-34 percent EBITDA margin for 2022 as a whole, and
that we expect to be cash positive for 2022, adjusted for any special items,"
said CEO of Ørn Software Sten-Roger Karlsen. 

Ørn Software reiterates the company's 2022 guidance: 

 * Revenue: Around NOK 270 million (194 million in 2021)
 * Adjusted EBITDA margin: 32-34 percent (24 percent in 2021)
 * CAPEX: Around 16 percent of revenue (17 percent in 2021)
 * Positive full-year cash flow after payment of interest (before adjustment for
   any special items) 

"2022 will be a pivotal year for Ørn Software, bringing us up to a whole new
level organizationally, technologically, and financially. Our platform is
strong, and I have never been more confident in our growth model and our ability
to create value for our customers. Hence, our 2025 target of growing our ARR
organically to NOK 430 million while achieving an EBITDA margin above 45 percent
stands firm," said Sten-Roger Karlsen. 

Ørn Software's reported Net result in Q1 2022 was negative with 1.34 million
(-8.39 million in Q1 2021). This was affected positively by the significantly
increased revenue and EBITDA profit, curbed by increased depreciations and
amortizations, primarily driven by acquisitions and higher investments in
product and technology. 

WEBCAST PRESENTATION

In connection with the results, Ørn Software will hold an English language
webcast presentation today May 20, 2022 at 09:00 (CEST), followed by a live Q&A
session. Viewers are welcome to post written questions through the webcast
player. The presentation material is enclosed to this release. 

Representatives from Ørn Software will be CEO Sten-Roger Karlsen and CFO Vidar
André Løken. 

The webcast will be available live and as a recording on the following link: 
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220520_3

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. The stock exchange
announcement was published by the contact person, at the date and time as set
out above.

DISCLOSURE REGULATION

?This information is such that Ørn Software Holding AS is required to disclose
in accordance with the EU Market Abuse Regulation.

?This information was submitted for publication by the Company's CFO, Vidar
Andre Løken.

CONTACTS

 * Sten-Roger Karlsen, CEO Ørn Software, +47 922 62 321, [email protected] 
 * Vidar Andre Løken, CFO Ørn Software, +47 952 60 926, [email protected] 

ABOUT ØRN SOFTWARE HOLDING AS

Ørn Software is a Nordic provider of SaaS solutions enabling efficient
operations and maintenance across a wide range of asset-heavy industries,
including real estate, manufacturing, food & beverages, and aquaculture.

The Group's software provides customers with improved insight through
data-driven operations and contributes to increased efficiency and reduced costs
through digitalization of rental processes, data-driven maintenance scheduling
and energy optimization. All of the above contribute to the lengthening of
property and equipment lifespan, a key component of Ørn Software's value
proposition. Furthermore, the Group's offering enables customers to reduce their
environmental footprint and provides digital tools to meet reporting and
regulatory requirements.

ATTACHMENTS

Download announcement as PDF.pdf -
https://kommunikasjon.ntb.no/ir-files/17847696/1465/2003/Download%20announcement
%20as%20PDF.pdf

Orn Software Q1 2022 presentation.pdf -
https://kommunikasjon.ntb.no/ir-files/17847696/1465/2000/Orn%20Software%20Q1%202
022%20presentation.pdf

Orn Software Q1 2022 report.pdf -
https://kommunikasjon.ntb.no/ir-files/17847696/1465/2002/Orn%20Software%20Q1%202
022%20report.pdf

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