StrongPoint (STRO) Q3 2023 earnings summary

Executive summary

• Q3 revenue fell 15.3% YoY to NOK 292.9m; EBITDA declined to NOK 3.8m from NOK 20.7m amid persistent customer investment delays.

• Gross margin improved to 44.1% from 37.1%; rolling 12-month recurring revenue rose 7.5% to NOK 356m.

• Cost reductions target NOK 20m in annual savings from January 2024; 2025 ambitions remain NOK 2.5bn revenue and a 13–15% EBITDA margin.

Financial highlights

• Q3 revenue was NOK 292.9m, down 15.3% YoY; EBITDA was NOK 3.8m versus NOK 20.7m.

• YTD revenue increased 4.6% to NOK 1,011.5m, while EBITDA decreased to NOK 19.3m from NOK 42.0m.

• Q3 net loss was NOK 9.3m versus NOK 8.0m profit; EPS was -NOK 0.21 versus NOK 0.18, and adjusted EPS was -NOK 0.15 versus NOK 0.27.

• Q3 operating cash flow was negative NOK 24.5m versus positive NOK 4.0m, mainly due to negative summer working-capital movement.

Outlook and guidance

• Cost measures target NOK 20m annual savings from January 2024; restructuring costs are expected in Q4 2023.

• The 2025 targets remain NOK 2.5bn revenue and a 13–15% EBITDA margin, supported by large grocery-retailer opportunities and retail-technology demand.

• The Iberian cash-management pilot continued after lab-testing delays; an announcement was expected in Q4.

• Management cited potential UK progress and Iberian project delivery among major customer opportunities, while investment recovery timing remained uncertain.