Volue (VOLUE) investor relations material

Executive summary

• Operating revenues reached NOK 409 million in Q2 2024, up 9% year-over-year, with recurring revenues comprising 71% of total revenues and SaaS revenues up 38% to NOK 135 million, representing 33% of total revenues.

• Adjusted EBITDA margin improved to 22% from 17% in Q2 2023, driven by scalability, organic improvements, and a shift to recurring revenue streams.

• Strategic shift from non-recurring, volatility-driven revenues to recurring models is building a more resilient revenue base.

• Launched a new AI-based wind model, enhancing forecasting accuracy by 20% and strengthening the Insight platform.

• A voluntary cash offer for all shares at NOK 42 per share, representing a 51% premium to the last traded price, was announced post-quarter and is expected to launch in August 2024.

Financial highlights

• Recurring revenues in Q2 2024: NOK 292 million (24% growth year-over-year); SaaS revenues: NOK 135 million (38% growth year-over-year).

• Adjusted EBITDA was NOK 88 million (Q2 2024) vs NOK 63 million (Q2 2023); margin 22% vs 17%.

• Net profit for Q2 2024 was NOK 21.9 million; gross margin stable at 86%.

• Cash flow from operating activities was NOK 370 million for H1 2024; cash balance at quarter-end: NOK 193 million.

• Capex increased slightly due to seasonality and business opportunities, expected to decrease in the short-to-medium term.

Outlook and guidance

• Maintains long-term guidance: 15% annual organic growth, 1-2 M&A deals per year, and year-on-year improvements in adjusted EBITDA margin, cash conversion, ARR, and SaaS share.

• Expects continued ARR growth for the remainder of 2024, supported by strong sales and market outlook, and continued strategic investments in SaaS platform and international expansion.