Financial Results For the Second Quarter of 2023

The transformation towards recurring revenues and Software as a Service (SaaS) continues. SaaS revenues were NOK 98 million in the quarter, an increase of 43 percent compared to the second quarter of 2022. Recurring revenue constituted 63 percent of total revenues and reached NOK 236 million in the quarter, an increase of 25 percent from the second quarter of 2022. This makes the recurring revenue growth in the quarter Volue’s highest since listing.

Volue achieves sustained growth through key customer acquisitions, highlighted by strategic wins in the quarter. Notably, the company expands its presence in Japan reaching nineteen paying customers, secures additional contracts for its Insight business line, and clinches a significant Trading Solution deal in Europe. Volue is also pleased to see Smart Power being adopted by new customers as well as extended usage from existing customers.

“We are pleased to once again hold true to our promise of strong growth as we are reaping the benefits of the investments we’ve made in our platform since listing. The demand backdrop is also highly supportive. Intermittent renewables are being brought online at a breath-taking speed. This means more volatility, more transactions and new market entrants, continuously increasing the demand for Volue’s energy software offering.” says Trond Straume, CEO of Volue.

In May, Volue announced the acquisition of Enerim Oy’s Energy Market Services division, a market leader in portfolio management of intermittent renewables with 24/7 operation.

“This acquisition ties perfectly with Volue Market Services and Volue Trading Advisory to form Volue Energy Market Services, providing Portfolio Management as a Service to a growing market, including small to medium wind, solar and battery players. Combined, we will be the Nordic market leader, positioned to be a leader in Europe by 2030,” Straume says.

“Our ambition is to become the number one software and software-backed service provider to the European energy system by 2030. In order to reach this goal, Volue will be focused, both organically and structurally. In the first half of 2023 we initiated a strategic review of our ownership in Industrial IoT, and we have divested our fire and chimney product line at very attractive multiples. These structural actions illustrate our dedication to the 2030 goal, and contributes to providing us with bandwidth which will be used at the correct organic growth initiatives”, Straume continues.

“Following the Enerim transaction, Volue Energy Market Services grows to a size where a new view on our offerings to the European energy system is warranted: Energy Software, Energy Market Services and Power Grid Software. The common foundation for these three dimensions is the Volue SaaS platform and our Insight offering, which delivers analysis and forecasting services for all participants in the energy system. On this foundation, we are building scalable SaaS offerings directed at power producers of all sizes and grid operators across Europe. Our growth since listing, which is ahead of market expectations at the IPO, brings proof to Volue’s ability to execute on market opportunities. We will leverage this capability to excel on our ongoing journey, ensuring that we seize the opportunity to capture our rapidly expanding end-markets,” Straume concludes.

The long-term ambition of NOK 2 billion in revenues, including M&A, by 2025 is maintained. The long-term target of 15 percent annual organic revenue growth is also maintained. Volue sees year-by-year increases of adjusted EBITDA margin, cash conversion, share of ARR and SaaS revenues.

For H2 2023, Volue has the following priorities and ambitions

• Position Volue to deliver long-term growth of 15 percent
• Continue to grow scalable ARR business in line with long-term targets
• Focus on profitability initiatives to improve profitability and cash conversion
• Successfully integrate Enerim Market Services division into Volue and continue to explore structural growth opportunities

*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 2023 presentation on page 36.

Webcast and presentation

For further details, please see the presentation. You can also watch the highlights in the recording below.