Good morning everyone, and welcome to this presentation of Momentum Software Group's year-end report 2021. My name is Åsa Lundborg-Ling, and I am the CMO and Head of Investor Relations at Momentum. I am joined by our CEO Richard Durlow and CFO Malin Helleryd, who will give their comments on the report and answer any questions at the end of the webcast. Thank you Åsa. Before we get into the numbers, we will start with a brief introduction to Momentum. This is our mission statement. We digitalize and simplify everyday life for property owners and their tenants. I think it's worth to mention here that historically there's been a lot of focus on the property owner's internal processes as far as our softwares go. In recent years, we focused more and more on the tenant experience, i.e. our customers' customers. We do this through our two main platforms, Momentum Fastighet, which is a comprehensive property management platform covering, if not all, but most of the daily processes, that a property company handles. On the right, you see our other main platform, Momentum Energi, also a comprehensive tool covering the processes of collection, calculation, and analysis of energy data. What's in common for these platforms are that they are built from the ground up as SaaS platforms. All web-based, only delivered through the cloud, and of course, built on best practice. Our growth strategy is very straightforward. It entails three parts. Product expansion. We are towards the end of a big SaaS phase out of our legacy platforms, going over to our SaaS platforms. Now we're looking forward to upselling our new add-ons that have been developed in the recent years. Many of them have been launched actually in the last 12 to 18 months. That's gonna be a big focus for us. New logos or new customers, of course, for every company looking to grow organically is something we will focus on. Here we can see a really strong word-of-mouth trend in the market where our happy customers tell their friends and acquaintances. We see that property owners talk a lot in between themselves. Very strong trend working for us here. The third part that came now together with the listing is the selective M&A strategy where we're looking to expand our footprint in the real estate software primarily in Sweden towards the beginning covering even bigger parts of the property owner's software needs. That's how we will grow. Okay, moving over to the year-end report or the Q4 report. We will highlight some of the numbers. We start with our most important KPI or CARR or contracted annual recurring revenue. For the fourth quarter, we had a net increase of SEK 5 million versus SEK 3.1 million in the fourth quarter of 2020. For the full year, we increased by SEK 17 million versus SEK 7.3 million. In the last twelve months, this number has grown 28%. Of course, we're very happy with these numbers. 2021 was an exceptional year in many ways for Momentum. On the right-hand side, you see the diagram that we also have in our year-end report. I think this is a good one to illustrate the connection between recurring revenues booked in our income statement versus our CARR. As you can see, our CARR works as a sort of guide for where recurring revenues are headed. Looking at booked revenue, for the fourth quarter, we increased both recurring and service revenues at a good pace. Total revenues were SEK 26.7 versus SEK 22.1 and a growth of 21%. For the full year, we had similar numbers, not quite as high growth rate, but landed at 18%. Of course, all of these numbers are organic growth only. Looking at the right side, you can see the revenue split for our revenue, and it's a roughly 60/40. This depends on the number of implementation projects we have going on. At the moment, we have quite a few, as I mentioned in the report. We have expanded our organization. Over time, this will vary a little bit, but roughly 60/40. Just to be clear, the service revenues are mainly consisted of these implementation projects. Yes. I will hand over to Malin to discuss our profitability. Yes, we have seen an improvement in the profitability during the recent years as a result of the SaaS shift and increased revenues. Our adjusted figures exclude the one-off IPO costs that impacted the last quarter of 2021. In the fourth quarter, we reached an adjusted EBITDA of SEK 7.5 million compared to SEK 6.6 million in 2020. The adjusted EBITDA margin was 28% compared to 30% in 2020. For the full year 2021, we reached an adjusted EBITDA of SEK 31.8 million compared to SEK 27.1 million in 2020. The adjusted EBITDA margin was 33% in both years. Based on the high order intake during the spring last year, we strengthened our service organization with 60 new consultants and project leaders who started their onboarding in August 2021. The investment in new employees has had a short-term negative effect on profitability, mainly affecting quarter three and four last year, but enables a higher implementation pace going forward. Moving on to our financial targets. Our long-term financial targets are an organic sales growth of around 20% per year in the medium term and total revenues in excess of SEK 300 million by 2026. In 2021, we reached 18% in sales growth and a total revenues of SEK 96.3 million. The other financial target is an EBITDA margin in excess of 45% in the medium term, and in 2021, we reached 33%. Momentum's dividend policy is that the company's board intends to use the cash flow generated by the business primarily for continued investments in growth, both organic and through acquisitions. Although growth is a priority, the board will assess the possibility of a dividend each year. Yes. I think it's worth to mention here, as I also write a little bit about in my CEO comment, regarding the profitability, is that we have quite a few initiatives that will strengthen this over time but are yet to have full effect. One example is the phasing out of Boplats, our third business area, that we decided to phase out a few years ago. We also still have some legacy versions of our software to phase out. This will have a gradual effect over the coming years, I would say. We look very long-term in everything we do and will continue to do so. Okay. Okay. Thank you so much, Richard and Malin, for your comments. It is time to open up for questions from the audience. I will just quickly go through how this works in Teams in case you haven't used it before. If you have a question, please raise your hand by clicking the hand symbol at the upper menu, and we will then answer the questions by unmuting your microphone. Please, now is the opportunity to ask questions. Go ahead and raise your hand. Okay. We see that we have a question from Erik Larsson. Go ahead, please. Yeah. Hi, can you hear me? Yes, we can hear you. Yes, we can. Okay. Good morning and congrats on your first quarter as listed as well. Thank you. I have a couple of questions. Firstly, just a broad one, I guess, 'cause I mean, we've seen high inflation in electricity prices and energy prices as well, and it's gotten a lot of media attention recently. Presumably it should support awareness for, of your energy product. I guess my question is, have you noted any specific interests, increase or more queries from customers or inbound sales or something within energy? I would say we haven't seen anything really specific. It's just been a gradual increase in interest over time for our energy platform. I would say that the interest is already very high. That's the best way I can answer that question, I think. Nothing specific over the last, say, few weeks or few months. No. Okay. And just on your service revenue, which was strong in this quarter, you also mentioned that you have some new people you have onboarded here in the last couple of quarters. Can you just give us the backdrop of the dynamics here? I mean, do you have any specific times during the year where you hire a lot of people? What's sort of the time needed for consultants to be fully up and running? Yes. Few questions, but to answer first, yes, August is our sort of normal time to onboard. I think we share that with a few other companies with the same dynamics as we do. Usually we take in a few people at that time. This year, as we wrote in the report, we had really good sales and our implementation backlog had increased. That's why we increased the number of people. Generally onboarding to be up, full up and running takes about nine months for a consultant. That's why we also write about in the report that even though we can, of course, see an income or a revenue effect from the new hires, they are still not up to where they will be once they're fully onboarded. Okay. Just a quick follow-up. Have you noted, as many other companies in this space, you know, given a tight labor market, high competition from other tech or consultancy firms and sort of pressure on salaries or something? I would say a little bit. I see some other companies talking a lot about this. We haven't seen that much from it, but it's something we're definitely keeping under check going forward. I think that sort of the main competition against that is to have a really strong culture, which is something we're working with and on every day. But of course, I mean, inflation figures will be very interesting to see where they're going, if this is just a sort of one-time effect or if it will be persistent over time. We follow that closely. Okay. That's all from me. Thank you. Thank you. Thank you. Do we have any other questions? I don't see any other hands. Maybe everyone is happy with the presentation. Okay, good. We will thank you very much for attending this webcast. We wish you a very nice day, and we'll see you again next time. Thank you.
Loading workspace