Carasent (CARA) Q1 2025 earnings summary

Executive summary

• Revenue grew 29% year-over-year to SEK 85.2 million, driven by organic growth and the Data-AL acquisition, with ARR up 27% to SEK 321 million and organic ARR growth of 14%.

• EBITDA margin improved to 16% from 9% a year ago, reflecting strong operational progress and cost control, despite slightly higher costs from AI investments and receivable write-downs.

• Net loss narrowed to SEK -3.0 million from SEK -10.4 million, with adjusted EBIT turning positive at SEK 0.7 million.

• Focus remains on growth, efficiency, targeted capital allocation, and piloting integrated AI assistants for EHR platforms.

• Webdoc customer bankruptcies increased churn and pressure on new sales, but sales efforts and product improvements are driving recovery.

Financial highlights

• Organic recurring revenue growth was 14%, with contract ARR growth at 26% and ARR reaching SEK 321 million.

• EBITDA margin at 16%, with SEK 13.9 million EBITDA and a 14 percentage point margin increase.

• Gross profit margin stable at 84%-85%, with gross profit of SEK 72.0 million.

• 90% of revenue increase converted to EBITDA; adjusted for non-recurring items, 73%.

• Cash on hand at SEK 253 million, with cash flow from operations at SEK 4.6 million and free cash flow impacted by working capital headwinds.

Outlook and guidance

• Financial targets for the year are maintained, with a focus on timely project rollouts, pilots in surgery, Volvat, MedSun, and the launch of WebDocX in Germany.

• ARR expected to accelerate in H2 2025 as new Norwegian agreements ramp up.

• Continued investment in AI assistant technology, efficiency gains, and selective acquisitions planned.

• Share buybacks will be recurring, with size determined annually based on M&A discussions.