Good morning, welcome to House of Control's Q1 presentation. My name is Carl Fabian Flaaten. I'm the CFO of the company. Our growth journey continues. As I showed you in our Q4 presentations, we have had an average annual growth of 35% over the past four years and more than triple our ARR in the period. I am very happy to tell you that we managed to accelerate the growth in Q1. ARR of NOK 151 million at the end of Q1 was 43% above the end of the Q1 2020. The growth is supported by acquisitions, the underlying organic growth of 20% is also healthy in a year impacted by the COVID-19 pandemic. I continue to be impressed by how our employees have managed to adapt and move all customer and prospecting activities to a fully digital setup. New sales in Q1 were almost 150% higher than in the same period last year. We managed to get the CFO's attention, even in the busiest time of year for them, with completion of the annual accounts. A strong Q1 is a major win for us, as this quarter historically has been colored by weaker new sales than other quarters. We managed to utilize the momentum from Q4 and maintain a strong prospecting pipeline. As I have talked about in earlier presentations, we believe our progress should be evaluated over time and therefore show our revenue and EBITDA development on a running 12-month basis. For the Q1 isolated, we report 49% increase in revenue to almost NOK 40 million, with a combination of 17% organic growth and the acquisitions of DinERP and Effectplan. Growth on the 12-month rolling basis was 39% to NOK 138 million, and pro forma revenue, including acquisitions, was NOK 150 million. The growth requires investment in people. We have more than doubled our workforce from 60 to more than 120 employees over the last year. This is mainly software developers and sales resources that have been onboarded to secure that we continue to broaden and improve our product offering and that we have sufficient resources to bring them to market. These growth investments temporarily reduce our margins. The EBITDA in Q1 was -NOK 4.7 million and -NOK 1 million adjusted for special items. Turning to our operations. Many of you will have seen this before, so please bear with me while I provide a short company introduction to any new followers. We brand ourselves the CFO's best friend. Our product vision is to provide CFOs with financial control and enable them to optimize business processes. House of Control offers best-of-breed horizontal software to nearly 1,300 CFOs across the Nordics in a large and under-penetrated market with limited direct competition. Norway still accounts for the bulk of our business, but Sweden and Denmark are growing fast, and we have begun to establish ourselves outside the Nordic region. We're also assessing M&A opportunities to accelerate growth in all markets. Let's take a look at where we come from. This image is a good illustration of what we meet every day. CFOs typically start to lose control over decentralized contracts when companies reach 30 to 50 employees, and especially if there are several different locations. How do you keep up with all the activities, and how do you maintain an overview of all the contracts? What happens when employees who have signed auto-renewing supplier contracts leave? What commitments are associated with specific locations and departments for the next six, 12, and 18 months? What does that cash flow look like? This is where we come from. Our software originates from a contract management system that provides the CFO complete control over contracts, assets, and obligations. We have come a long way over the recent years and now offer a lot more than contract management. Our main product is still the Complete Control solution, which offers an easy financial and operational overview over all the company's contracts. This accounts for 62% of current ARR. On top of the Complete Control solution, we have developed 23 supplementary solutions on areas such as REM, ESG reporting, digital signing, and so on, which combined account for 18% of current ARR. These solutions represent customer-driven innovation. If we receive a request for additional functionality that could be relevant for a large share of our customer base, we typically develop a solution and bring it to market through our customer success teams. The last area is business process solutions, which we have built up through the acquisitions of DinERP and Effectplan. We expect significant growth in this area and just last week took the next step with the acquisition of the Norwegian business intelligence company Business Analyze. The Business Analyze acquisition further strengthens our comprehensive business process solution offering with the addition of business intelligence dashboards. We are standardizing the new enterprise offerings, hosting them from the Complete Control platform, and deploying our House of Control sales force to sell the complete offering to the enterprise market. As we have pointed out earlier, this creates synergy potential from new sales, upselling, and cross-selling to both existing and new customers. The acquisition of Business Analyze enable us to provide all-in-one business intelligence dashboard solutions. We have used the system internally for several years to visualize and track our own sales results. Business Analyze is still a relatively small company with an ARR of around NOK 10 million. The company has gained valuable insight and experience in a market that tends to be dominated by consultancy fees and tailor-made solutions, and have managed to establish a recurring revenue model with standardized solutions in that space. 30 of the company's 300 customers are already House of Control customers, and we will leverage this to increase cross-selling on the customer portfolios. I've shared this slide on several occasions earlier, so I expect some of you have been waiting for us to announce an acquisition within analytics, reporting, and dashboards. Continuous product development and the acquisitions over the past years has enabled us to take a broader role and provide a platform of best-of-breed products to empower the CFO, facilitate efficient operations, and provide seamless integration with incumbent business systems. We now cover the entire value chain and offer a complete overview of contracts and business processes, coupled with KPIs from ERP, CRM, and HR systems. This is a unique offering in our market. Overall, the acquisitions we have made more than doubled our addressable market, providing us with an opportunity to grow into a Nordic market 60 times larger than our current size. Our product development team is working diligently to increase the value of our products and solutions. This quarter, we have made further improvements to the fifth generation Complete Control, with public APIs for better integration, a new advanced document reader for contracts, and improved document search functionality. We have also launched tools for consolidated IFRS 16 reporting for large enterprise customers, and we are very excited to go live with Complete Control for the first customers. This product is based on DinERP's enterprise solution for procurement, adapted to our Complete Control platform, enabling our customers to operate an internal web shop and secure that purchases are being made in accordance with the terms negotiated in supplier frame agreements. Finally, the Effectplan development resources in Stockholm have been fully integrated in our organization. Overall, we are now more than 120 employees, with close to 30 people in development and close to 30 in our customer success teams. Our new sales teams have close to 55 people. Compared to last year, this represents a massive step up in our growth investments. We continuously recruit personnel to strengthen our product innovation capabilities, develop our customer relationships, and bring our offer to market efficiently. Turning to our financials. I've already mentioned that we saw 43% year-on-year ARR growth in Q1, with 20% organic growth. New sales were exceptionally strong for the season at NOK 8 million, up 146% from Q1 last year. Churn was somewhat higher than expected, as we lost a significant DinERP customer early in the quarter. Net retention was 98% overall and 99% for the legacy business. We expect continued high new sales and improved net retention rates for the remainder of 2021. The churn in DinERP held back growth in Norway from the end of the Q4. ARR increased slightly to NOK 109 million. Sweden and Denmark continued to grow at a healthy pace, both increasing to NOK 16 million in ARR per the end of Q1. Our contracts outside the Nordics were unchanged in the quarter. We've already discussed the revenues, which increased 49% year-on-year with 88% recurring revenue share. Costs are driven by the high investments in more people to support our strong growth traction, leading to a reported EBITDA loss of NOK 4.7 million and an adjusted EBITDA loss of NOK 1 million when excluding special cost items. Depreciation and amortization amounted to almost NOK 10 million, with amortization of excess value under NGAAP amounting to NOK 3.2 million. EBIT hence show the loss of NOK 14.3 million for the quarter, up from a loss of NOK 4.5 million in the same quarter last year. Net financial costs were NOK 5.6 million, and net loss before tax, hence NOK 19.9 million. Net operating cash flow was a negative NOK 6 million in the Q1, whereas investments in software development amounted to NOK 8.6 million in the quarter. Free cash flow was hence a negative NOK 14.6 million in the quarter. Cash outflow from financing activities was NOK 2.6 million, reflecting interest payments. Our cash balance remains solid at NOK 329 million at the end of the quarter. Moving to the balance sheet. We obviously see a sharp increase in total assets over the past year, mainly in intangible assets and cash. This reflects acquisitions, R&D investments, and the share issue in Q4 last year. Changes on the balance sheets for the quarter mainly reflects the losses in the quarter and its effect on equity and cash holdings. We have a strong cash position and the available liquidity is even higher with NOK 198 million available on a committed capital and acquisition facility. This leaves us financial flexibility to pursue our growth ambitions. I'll round off with a few comments on our way forward. We see several avenues to continue our growth journey with a large untapped potential in a Nordic market that's 60 times larger than our current size. We see a strong potential in cross-sales to the customer bases we have acquired over the past year, and a large upselling potential in the existing customer base with the products and solutions we have acquired. We added a new company to our portfolio with the acquisition of Business Analyze last week, and we will continue to support our organic growth with more acquisitions going forward. Our ambitions remain the same, and we reiterate our target to reach NOK 500 million in ARR by the end of 2025. This requires a step up in organic growth with continued strong new sales and improved net retention rates from the current level. We are confident that our continuously growing and improving product portfolio will enable us to reach these targets. Our growth investments are currently holding back our margins. We remain confident that the margins will increase with scale towards our 40% long-term target. Last but not least, we will fulfill our vision of being the CFO's best friend. With that, I'll be very happy to take some questions. I see we didn't get any questions during the presentation, we'll just give it a minute to see if we have any inbound questions. Also, just mentioning that we uploaded everything, obviously, to our investor relations pages, the report and the presentation is there, along with most of the material we have provided over the last period. My contact information is there with email and phone number. If you think about any questions later on, just shoot me an email or give me a call and we'll talk about them. Okay. I think we'll close the presentation since there are no questions. Thank you very much for watching, and we truly appreciate your interest in the company. Thank you.
Loading workspace