Klappir Grænar Lausnir (KLAPP) H2 2023 earnings summary

Executive summary

• FY2023 operating revenue reached ISK 573.6m; EBITDA rose to ISK 97.2m and net profit was ISK 8.8m, reversing the prior-year loss. Subscription revenue grew 35% YoY.

• Strategic focus shifted toward product-led growth, Nordic and European expansion, and partner-led sales and implementation.

Financial highlights

• Revenue was ISK 573.6m in 2023 vs ISK 450.8m in 2022; operating profit (EBIT) was ISK 46.0m vs a loss of ISK 36.6m.

• EBITDA increased to ISK 97.2m from ISK 31.5m; net profit was ISK 8.8m vs a net loss of ISK 35.5m.

• Interest costs totaled ISK 35.1m and net currency differences were a loss of ISK 7.5m in 2023.

Outlook and guidance

• Product investment is at a high, with development aimed at upcoming EU sustainability rules; expansion into Nordic and European markets is planned.

• Large listed companies report under CSRD from 2024; large unlisted companies follow in 2026 on 2025 data, and listed SMEs in 2027 on 2026 data.

• A special RANNÍS reimbursement of ISK 188.3m for 2023 project costs is estimated for payment in November 2024.