Adjusted EBITDA* was NOK 44 million, with an adjusted EBITDA margin of 15 percent.
The transformation towards recurring revenues and Software as a Service (SaaS) continues. SaaS revenues were NOK 68 million in the quarter, an increase of 29 percent compared to the second quarter of 2021.
“We report strong growth and our best second quarter and first half so far, driven by an impressive 44 percent growth in our Energy segment. This illustrates both Volue’s exposure to strong energy markets and the excellent work done by the Volue team. Energy markets are going through a tectonic shift leading to price increases and increased volatility. This increases data-driven opportunities based on an integrated digital value chain from sensors to executed trades. In short, our solutions have never been more valuable to customers in the energy market,” says Trond Straume, CEO of Volue.
Volue reported second quarter 2022 operating revenues of NOK 298 million, up from NOK 233 million in the corresponding quarter last year. Adjusted EBITDA* for the quarter totaled NOK 44 million (57), and EBIT was NOK 12 million (-11).
“We have invested in an organisation capable of leveraging the tremendous opportunities in the energy markets. In the short term, this impacts our adjusted EBITDA margin, but moving forward, we will reap the benefits of these investments. We are highly focused on expanding margins and will be mindful of balancing top-line growth and long-term investment,” Straume continues.
Recurring revenue constituted 63 percent of total revenues and reached NOK 189 million in the quarter, an increase of 17 percent from the second quarter of 2021.
“We continue to grow our recurring revenues, and as a supplier of business-critical enterprise resource planning software for industry verticals, we see minimal churn among our customers. Our software becomes a key part of their value creation,” says Straume.
Volue continues to prioritise strategic investments in its SaaS platform and expansion into new markets, which creates short- to mid-term EBITDA impact and increased R&D capitalisation in line with plans.
Volue has set the following priorities and ambitions for the second half of 2022:
• Further utilise synergies to strengthen margins
• Adjusted EBITDA margins improving from the first half of 2022
• Continue to grow ARR business in line with 2025 targets and 2021 performance
• Expand activities outside Europe
• Strategic investments for international growth
• Structural growth through M&A
Trond Straume, CEO and Arnstein Kjesbu, CFO, will present the results today at 08:00 am CEST at Hotel Continental in Oslo, Norway.
You can follow the webcast from this link: https://channel.royalcast.com/landingpage/hegnarmedia/20220819_1/
*EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as part of the APM section of the second quarter 2022 report on page 22.