Attachments and files:
Watch the webcast on demand (registration required): https://streams.eventcdn.net/houseofcontrol/2020q3
ARR +38% year-on-year to NOK 134 million – growing to NOK 138 million in October
Revenue +42% year-on-year to NOK 33.3 million in Q3 and +27% to NOK 87.1 YTD
EBITDA of NOK 2.6 million in Q3 (-0.5) and NOK 9.4 million YTD (-4.7)
Høvik, 11 November 2020: House of Control (HOC-ME) reported 42% year-on-year revenue growth to NOK 33.3 million in the third quarter of 2020 and 27% growth to NOK 87.1 million for the first nine months of the year. The growth was supported by the acquisition of DinERP in July, and organic revenue growth was 19% year-on-year in the quarter and 20% for the first nine months.
Annual recurring revenue (ARR) was NOK 134 million at the end of September, which was an increase of 38% from the end of September last year. Growth continued into the fourth quarter and ARR increased to NOK 138 million at the end of October.
“Overall, we report good growth so far this year, as sales rebounded after an initial slowdown when Covid-19 first hit in March. Monthly sales were back at record levels before the summer and we see that our digital sales efforts have been very effective. The momentum continued into the fourth quarter with another monthly sales record in October, and we maintain high prospecting and sales activities,” said Lasse Sten, Chief Executive Officer of House of Control.
EBITDA increased to NOK 2.6 million in the third quarter from a loss of NOK 0.5 million in the third quarter of 2019, whereas EBITDA for the first nine months increased to NOK 9.4 million from a loss of NOK 4.7 million in the corresponding period last year.
The acquisition of DinERP in July was the first acquisition in the company’s fifteen years of operations and broadened the portfolio of business process solutions significantly. Measured in terms of ARR, House of Control’s core solution Complete Control now account for roughly 63%, supplementary solutions for 17%, and business process solutions for 20%.
“DinERP opens access for our Complete Control solutions to a larger customer segment in the enterprise market, and we also have more business process solutions to offer to our existing customer base. The entry into business process solutions almost doubles our addressable market in the Nordics,” said Sten.
On a proforma basis, including DinERP for the entire first nine months 2020, House of Control had proforma revenue of NOK 101.5 million and proforma EBITDA of NOK 16.0 million. The proforma EBITDA margin was thus 16% for the first nine months 2020, compared to the reported EBITDA-margin of 11%.
The company will host a webcast today at 10:00 CET. Please use the following link to access the presentation: https://streams.eventcdn.net/houseofcontrol/2020q3. The presentation will be followed by a Q&A session. Questions may be asked in writing during and after the presentation in the comments section below the webcast window. The report, presentation and the link to the webcast will also be made available at https://www.houseofcontrol.com/investor-relations.
For further information please contact:
CFO Carl Fabian Flaaten
Cell: +47 90 04 31 84
About House of Control:
House of Control is the leading Nordic SaaS company for commercial value management solutions. Branding itself as “The CFO’s best friend [Trademark]”, the company’s product vision is to provide financial control and facilitate optimisation of business processes. The main product is the proprietary Complete Control™ solution for operational and financial contract management, on which the company offers a broad suite of specialised add-on solutions. House of Control expanded its scope into enterprise business processes with the acquisition of DinERP in 2020, offering solutions for purchasing processes, supplier and B2B business communication, and travel, time, and expense management.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.