Smartcraft (SMCRT) Q4 2024 earnings summary

Executive summary

• Leading Nordic SaaS provider for the construction industry, serving over 13,400 customers and 130,000+ users across Norway, Sweden, Finland, and the UK.

• Q4 2024 saw strong ARR and revenue growth, but higher churn and downgrades due to industry bankruptcies and project slowdowns impacted results.

• Profitability declined due to margin dilution from acquisitions and increased R&D investments, with adjusted EBITDA-capex margin at 24%.

• Record new customer wins and high sales conversion rates, but growth was hampered by churn and downgrades.

• Strategic focus remains on balancing long-term growth initiatives with short-term optimization in a weak construction market.

Financial highlights

• Q4 2024 revenue reached NOK 136.3 million, up 27.2% year-over-year; ARR at NOK 482 million, up 25% year-over-year, with 8.2% organic growth.

• Adjusted EBITDA margin was 37% for the year; adjusted EBITDA-capex margin was 24% in Q4, down due to acquisitions and investments.

• Operating cash flow increased 53% year-over-year to NOK 48 million in Q4; full-year cash flow NOK 179 million.

• Churn rate increased to 9.2%, mainly due to customer bankruptcies.

• Recurring revenue share at 94% for the quarter, slightly lower due to acquired companies.

Outlook and guidance

• Revenue and margin expected to remain stable in H1 2025, with gradual improvement in H2 as the construction market recovers.

• Medium-term targets reaffirmed: 15–20% organic growth and margin improvement as scale increases.

• Continued focus on acquisitions, especially in the UK, and leveraging SmartCraft Core and Spark initiatives.