Good morning! Welcome to the presentation of the first quarter results for Spir Group. My name is Per Haakon Lomsdalen. I am the CEO of Spir Group. I'm very happy to be here together with our CFO, Cecilie Brænd Hekneby, to present the results for the quarter. Spir Group is a software house with leading positions in two attractive markets in Norway and Sweden. Firstly, we deliver mission-critical software for the public sector. Our primary customers are local government, government agencies, and other public organizations. Secondly, our business is centered around real estate data and geoinformation. Our primary customers are real estate agencies, homeowners, constructors, engineers, banks, insurance companies, and telcos. These are the two main markets of Spir Group and markets where we have leading market positions. Spir Group has become a house of scalable brands. These are our core companies within our two main markets, as well as an overview of our other controlling and non-controlling brands. Starting from the left, Sikri is operating between the public sector in Norway and has a high level of recurring revenue and long-term contracts with minimal churn. Metria is the leading real estate data and geoinformation provider in Sweden. Our focus is to develop Metria's core business and increase margins. We are expecting to see effects from this transformation later this year. Ambita is the leading provider of real estate data in Norway, with a high and sustained market share. We assume that the real estate projects will increase, and recent numbers from Real Estate Norway suggest that this market is starting to pick up again. Boligmappa is a digital platform for property documentation. Boligmappa has almost 1 million unique users with high potential, and we are currently exploring new revenue models, which will give us growth rate and better margins moving forward. We also have an active M&A strategy, and we have acquired several companies during the last few years. One of them is ioT, a company with an improved product offering towards our customers within AE. We are also investing in energy and appraisal to strengthen our PropTech portfolio. Now, I will go a bit more detail into our four companies. First, Sikri. About Sikri: mission-critical software for public sector, such as case processing, applications, archiving, document management, data collection, and handling. We are a key player and strong number one position in the market. We have a high ARR, long-term sales agreements, and solid customer base, ROI-focused implementation, and customer excellence. We assist public administration with better use of resources and improving citizen services. Digital counting solution for election in Norway. Next up will be Valg 2025. From Q1, some highlights. We have very high sales activity with 142 closed deals. We have a high win rate on Elements bids. We're keeping up with the AI race, focusing on innovation and upsales. We are bringing developers home and hire locally to gain benefits of working closely with products and sales teams. Then it comes to Ambita. Ambita has also a strong number one position in the market. Ambita offerings cover nine of 10 processes in a real estate transaction that connects real estate agents, banks, and insurance companies. Digitalization, the settlement process in real estate transactions, driving innovation and propelling the real estate market forward. Transaction-based revenues correlated to the real estate market and seasons. From Q1, we made a partnership with Holte integration, a new distribution channel for maps and real estate services. We have an increased demand of digitalization in local government, drives growth for digital building applications in the market. Our product, Områdsanalyse, four times growth compared to last year. Then we have Boligmappa. Boligmappa is a platform for everything property-related. We have close to 1 million unique users across the platform. Boligmappa and Hjemla offer free services to consumers with the possibility of upgrading to premium offerings. On the B2B side, Boligmappa is available as a SaaS solution. A thought leader in the property market. In Q1, we launched a wide collaboration with mittanbud.no, Norway's largest platform for craftsmen's jobs. B2C product sales growing and positive development. We have 3,500 upgrades to Boligmappa Pluss, and 2,200 new active Hjemla Premium subscriptions. And then we go to Sweden, Metria. Metria is also number one position in Sweden within real estate information and geodata, with key customer verticals. Digital solutions and services within geodata, real estate, and remote sensing. Offerings and unification of climate risks and opportunities for reduced climate impact. We have a good revenue mix of transactional revenues correlated to mortgage and real estate market. In Q1, we had a strong growth on 12% in the sales solutions. We continue strong customer demand for Metria map solutions. We are exploring market cross-sell opportunities in Norway, and we launched a household energy performance platform. Spir Group's recurring revenue is at a very high level, and ARR increased 5% compared to Q1 last year to NOK 399 million. Total revenue reached 263 million NOK in the quarter, up 1% from last year. Our scalable business model has also resulted in stable and high margins, with a gross margin of 61% in the quarter. Now, Cecilie will give us some more in-depth look into our financial numbers from Q1. Welcome, Cecilie. Thank you, Per Haakon, and good morning, everyone. I will take you through the financial results for the first quarter, starting with the revenue development. First quarter is low season for several of our services, and transaction-based revenues are, in addition to our continued challenging real estate market, impacted by Easter, with 4 less work days this year than in 2023. The 4 less work days due to Easter is estimated to impact gross profit with NOK 45 million. Despite these factors, revenue increased by 1% from first quarter 2023 to NOK 263.2 million in first quarter 2024, with a gross margin of 61%. We have steady growth in our SaaS revenues, and annual recurring revenues increased by 5. 2% to NOK 399 million at the end of the quarter. EBITDA in the first quarter ended at NOK 32.8 million, compared to NOK 37.9 million in first quarter 2023. There were non-recurring costs related to M&A and restructuring of NOK 1.8 million in first quarter 2024, and non-recurring costs related to M&A restructuring and divestment of NOK 6.8 million in first quarter 2023. EBITDA adjusted for non-recurring cost was NOK 34.7 million in the first quarter, compared to NOK 44.7 million in first quarter 2023. There were increased operational costs in first quarter 2024 compared to one year earlier, due to general salary increase and inflation, overhead costs in Metria, earlier allocated to divested business, and some new positions on group level. However, we are in the process of reshaping the company, with initiatives underway that are expected to materialize during the second half of 2024. We have improved our financial position during the first quarter. We have strong cash flow from operations of NOK 160 million, and have reduced net interest-bearing debt, including leasing, by NOK 131 million since year-end 2023 to NOK 530 million. Our cash position is developing positively, and we are in a satisfactory liquidity position, with a cash balance of NOK 144 million as of March. In the first quarter, Spir Group improved revenues by 1% organic growth to NOK 263.2 million, which all in all is satisfactory, considering the current market conditions affecting several of our segments, in addition to Easter impact. In Sikri, revenue increased by 1% to NOK 67.1 million, driven by steady growth in SaaS revenues and upgrades. There was an extraordinary planned churn of NOK 10 million in the quarter related to end-of-life customers with high COGS. Ambita's revenue decreased by 2% to NOK 108.6 million compared to one year earlier. The majority of Ambita's revenues is transaction-based, and hence impacted by the Easter effect, in addition to a still slow real estate market. In Boligmappa, revenue increased by 8% to NOK 11.5 million, and annual recurring revenue increased by 13% compared to one year earlier, driven by increased subscription sales to new customers. Metria's revenue increased by 4%, driven by growth in SaaS revenues. The transaction-based part of revenues in Metria is negatively impacted by a still challenged real estate market in Sweden, in addition to Easter effect. The gross margin on group level in the quarter was 61%. I've now touched on some of the drivers of the quarter's results, and will now dive into more details of the four key segments of Spir Group. Sikri had revenues of NOK 67.1 million in the first quarter, and adjusted EBITDA of NOK 18.1 million, indicated an adjusted EBITDA margin of 27%. Revenue increased by 1%, and adjusted EBITDA, it increased by 2%. We have a steady growth in SaaS revenues, and annual recurring revenue increased by 5% compared to one year earlier, despite an extraordinary planned churn of NOK 10 million related to end-of-life customers with high COGS. 74% of revenues in the first quarter is subscription sales, while 22% of total revenue is consulting services. In Sikri, growth is impacted by the number of public tenders one year earlier. Sikri has stable and high win rates, and we submit offers on almost all public bids where our products or services fit. In the first quarter, Sikri won the tender for Ikomm, a collaboration consisting of the municipalities of Lillehammer, Gausdal, and Øyer, in addition to important upgrades and robotic process automation deals. Several universities and state authorities made additional purchases, such as the Norwegian University of Science and Technology, the Arctic University of Norway, the Norwegian Environment Agency, and the National Mediation Service. Sikri has a dedicated team and a cloud-based, cost-efficient solution for the clients to leverage automation technology. Sikri offers automation as a service and manage all aspects related to this technology. In Ambita, revenues decreased by 2% compared to first quarter 2023 to NOK 108.6 million. Adjusted EBITDA decreased by NOK 2.6 million to NOK 13 million, with an adjusted EBITDA margin of 12%. With 87% of total revenues being transaction-based, the first quarter results from Ambita are highly impacted by Easter falling in March this year compared to April last year, in addition to still a challenged real estate market. The four less workdays due to Easter is estimated to impact gross profit with NOK 4 million-NOK 5 million. Operational costs have increased with NOK 0.8 million compared to one year earlier, mainly related to reduced CapEx in the quarter. Ambita is a leading provider of digital real estate and construction offerings in Norway, enabling digital transformation and service. The sale of the user-friendly and flexible Infoland Meglerpakke is correlated to the number of properties put up for sale. The real estate market in Norway has been challenging following higher interest rates, but properties put up for sale was up by 0.5% in the first quarter, and commencement of new homes up by 4% compared to first quarter 2023. Many of the properties put up for sales in the quarter were, however, re-listings from 2023, and the number of commencements of new homes is still small, but it is a positive indication. The second quarter is historically the peak quarter for Ambita, with high season for properties put up for sales. In addition, we expect the Easter effect to reverse. Boligmappa had revenue growth of 8% in the first quarter and reached NOK 11.5 million. The underlying revenue growth is even higher since the company received grants from Forskningsrådet, the Research Council of Norway, amounting to NOK 0.7 million in first quarter 2023, which is reduced to NOK 0.1 million this quarter. Revenues are primarily from B2B sales, but three new products directed towards the consumer market were launched late 2023. 98% of total revenues are subscription sales, and annual recurring revenue is now about NOK 46 million, an increase of 13% compared with 1 year earlier. Operational costs have increased with NOK 1.6 million, following increased focus on sales and marketing to increase awareness and sales. Adjusted EBITDA was -NOK 0.4 million in the first quarter. Boligmappa now has close to 1 million registered users, and there is a steady increase in user engagement and subscriptions to both private users and professionals. Monthly active users have increased by 20% and professional sub-subscriptions with 29% compared to first quarter 2023. Boligmappa will continue to focus on user growth initiatives and testing of revenue models. Metria has a diversified revenue stream. 34% of total revenue in Metria are transaction-based and highly correlated with the number of properties sold and the size of mortgages. Despite a challenging real estate market in Sweden and the Easter effect, Metria managed to have a positive revenue development of 4% and ended at NOK 74.4 million, compared with one year earlier. 40% of total revenue of Metria are subscription sales, and SaaS revenue grew by 12% compared to first quarter 2023. Annual recurring revenue end of March was SEK 160 million, which is 5% higher than one year earlier. Adjusted EBITDA was NOK 11.5 million in the quarter, compared to NOK 15.6 million in first quarter 2023. Operational costs have increased compared to first quarter 2023. The planning and surveying business area in the Metria was divested in May 2023. In first quarter 2023, a substantial part of overhead costs, like facility cost, senior management, customer service, and sales, was allocated to P&S. After the divestment, the previous allocated part remained in Metria. Since the divestment, Metria has focused on building a new structure for the organization, and several cost reduction measures have been initiated, with effects expected to materialize during the second half of 2024. Capitalized development cost amounted to NOK 24.3 million in the quarter, compared to NOK 23.9 million in first quarter 2023, and are fairly stable. CapEx will however vary with the type of ongoing development projects. In the first quarter, CapEx in Metria has increased due to investments in new product offerings and core products to capitalize on growth potential. CapEx in Boligmappa in the first quarter is NOK 1.1 million lower than first quarter 2023. Spir Group has made significant investments in Boligmappa over the last years to scale the platform to cater for a high volume growth. Now, there is less need for new development, estimating total CapEx down by 10 million NOK for full year 2024 compared to full year 2023. Summing up first quarter financial results for Spir Group's total revenue increased by 1% in a challenging quarter with seasonal impact, and annual recurring revenue grew by 5.2% despite extraordinary planned churn. We do have increased costs related to general salary increase and inflation, overhead costs in Metria, earlier allocated to divested business, and some new positions on group level impacting EBITDA negatively this quarter. However, we have focused on cost following reshaping of the company, with effects expected to materialize during the second half of 2024. Depreciation and amortization expenses are NOK 2.4 million higher the first quarter compared to one year earlier, and are related to increased booked amount on capitalized development cost following the increased level of investment in Boligmappa and Metria during 2023. Interest paid on borrowings amounted to NOK 13.7 million in the first quarter, and is NOK 1.8 million higher than one year earlier. 64% of interest-bearing debt are covered by interest rate swaps at favorable terms, and we have positive impact from the interest rate swaps on net finance. Financial expenses are, however, negatively impacted by share of profit and loss from associated growth companies where we hold a minority stake. Net income ended at -5.6 million NOK in the first quarter, compared to -6.7 million NOK one year earlier. We have a strong underlying improvement in operating cash flows. As illustrated on the left-hand side of this slide, we can see that our free cash flow is impacted by seasonal fluctuations. First quarter is historically always a strong quarter in terms of free cash flow, as Sikri invoices a large part of its customer on a yearly basis in January and has a positive development compared to the two previous years. We generated 160 million NOK of operational cash flow in the first quarter. The main reason for the improvement is higher amounts of advanced payment for annual subscriptions. Investment cash flow consists of capitalized development cost, and financing cash flow consists of repayment of borrowing, interest, and lease payments. Spir Group's cash balance was NOK 144 million at the end of March. Assets consist to a large degree of intangible assets, where NOK 1 million is goodwill, and the remainder is capitalized development cost, customer contracts, and trademarks. Equity is close to NOK 1.1 billion, giving an equity rate of 47%. Net interest bearing debt is NOK 530 million at the end of March. This includes lease liabilities of NOK 38.9 million. It is a continued priority for the group to maintain a healthy capital structure, and net interest bearing debt has been reduced with NOK 121 million during the quarter. Spir Group has two interest rate swaps at favorable terms, covering 64% of the interest-bearing loans. Starting in July, we will switch from semi-annual installments of debt to quarterly installments. Summing up the first quarter 2024 financial results, there are four key areas I would like to highlight. The Spir companies increased revenues by 1% despite Easter impact and a still challenged real estate market. We enter the second quarter and high season with some positive indications for improvement in the real estate market and expect the Easter effect to reverse. We had a steady growth in annual recurring revenues of 5.2% despite extraordinary planned churn of end-of-life customers with higher COGS. Operational costs are higher in the first quarter compared with one year earlier, following general salary increase and inflation, overhead costs in Metria earlier allocated to divested business, and some new positions on group level. We have focused on cost control following reshaping of the company and expect effects from cost initiatives to materialize during the second half of 2024. Our operational cash flow is strong, and net interest bearing debt has been reduced. We are steadily improving our financial position and are eager to capitalize on our growth potential going forward. Now, Per Haakon will give some final comments on strategy and outlook. Thank you, Cecilie. Then we will look into the strategy and outlook for the year. Spir is built up on the main data and competence. As Spir Group, data forms the foundation of our operations. We create seamless digital services to enable powerful insight and easy interaction between communities. We invest in companies with a Nordic footprint. As Spir Group has a growth strategy, both through organic development, but also an M&A strategy. For us, it's important to become a preferred partner in the green transition. As just mentioned, Spir Group has a long-term ambition to be a preferred partner in the green transition. We facilitate data and technical solutions mandated by law. This has previously been manual and time-consuming. We ensure reuse of data and near 100% digital solutions. Through Boligmappa, we ensure sustainable development of buildings by safeguarding and storing data and documentation. Having a model with the intention to prevent unclear work, Spir Group follows international framework and best practice. We meet all requirements related to social issues and corporate governance. The increased focus on ESG in public tenders are key drivers for our long-term success and value creation. We focus on increasing productivity in all our four business areas and aim to unlock new revenue streams and drive innovation by using AI, technology, and data to locate unique patterns across our four companies. Key enablers in this setting is platform engineering, leveraging general AI and Data360. By investing in these critical areas, we build for long-term success and future-proofing against technological shifts to come. In today's digital landscape, data and AI is a must. Let's wrap up this presentation with an outlook. To improve profit, we maintain a strong commitment to cost control. Meanwhile, investments in product development are ongoing to improve margins and utilize synergies with the organization. We aim to maintain financial stability and flexibility, continuing with organic growth, as well as act on M&A opportunities, and we will continue to uphold our leading market position. Furthermore, recent data suggests that there are signs of improvements in the real estate market, both in Norway and Sweden, and we are ready to capitalize once the market tailwind occur. We are eager to see what 2024 brings, as we now head into the high season for many of our services. With that, I would like to thank you all for watching this presentation and wish you all a great day. Thanks!
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