Smartcraft (SMCRT) Status update summary

Business overview and market position

• Operates as a SaaS provider focused on simplifying daily operations for craftsmen and SMEs in construction, electrical, and HVAC sectors.

• Serves 14,000 customers across Sweden, Norway, Finland, and the U.K., with a total addressable market of 700,000 SMEs in these regions.

• Holds a top-three market position in Sweden, Norway, and Finland, with significant growth potential as over 50% of the market remains undigitalized.

• Maintains high recurring revenue, with SEK 522 million in ARR and a solid customer base.

Growth strategy and financial performance

• Achieved consistent ARR growth and strong margins, targeting at least Rule of 40 performance, with current margins around 26%-27%.

• Growth driven by organic sales, cross-sell/upsell of new products (Spark and Flow), and targeted M&A in the SME construction sector.

• Expansion focus on the U.K. market, leveraging both acquired and Nordic-developed products.

• Announced a NOK 75 million share buyback program, supported by a debt-free balance sheet and strong cash flow.

Product innovation and technology

• New products Spark (for electricians) and Flow (for HVAC) are AI-enabled and leverage decades of proprietary data.

• AI is used both to enhance internal efficiency and to deliver smarter, data-driven solutions to customers.

• Emphasizes integration with other systems to create a seamless ecosystem for SME customers.