ARR +45% year-on-year to NOK 211 million, with organic ARR growth of 19%. Excluding non-core offering divested in January, ARR increased +54% to NOK 197 million, with organic ARR growth of 25%.
ARR +45% year-on-year to NOK 211 million, with organic ARR growth of 19%
Excluding non-core offering divested in January, ARR increased +54% to NOK 197 million, with organic ARR growth of 25%
Growth supported by the acquisition of Keyforce in the fourth quarter
Revenue +41% to NOK 52.7 million in Q4, with organic growth of 20%
EBITDA of NOK -18.4 million and NOK -5.0 million adjusted for special cost items in Q4, reflecting continued investments in growth
Sharpened the strategic focus through divestment of ‘on-premises’ contracts in January
Expects positive EBITDA in 2022 and positive Cash EBITDA in 2023
Fully funded growth plan towards ARR base of NOK 500 million by the end of 2025
Høvik, 17 February 2021: House of Control (HOC) reported 41% year-on-year revenue growth to NOK 52.7 million in the fourth quarter of 2021, and 42% growth to NOK 177.2 million for the full year 2021. Organic growth was 20% for the quarter and 21% for the full year.
Annual recurring revenue (ARR) increased by 45% to NOK 211 million, of which 19% organic growth and the remainder explained by the acquisitions of Business Analyze, Egreement and Keyforce during 2021.
Excluding the non-core offering divested in January 2022, ARR increased by 54% to NOK 197 million, of which 25% organic growth and the remainder explained by acquisitions.
“We have shown good growth both organically and through acquisitions, and believe we are on track towards our target to build a highly profitable ARR base of NOK 500 million by the end of 2025,” says CEO Lasse Sten in House of Control.
House of Control is invested significantly into growth, and higher operating costs mainly reflects an increase of more than 50% in the workforce to 167 people at the end of the year. The EBITDA-loss was NOK 18.4 million for the fourth quarter and NOK 28.4 million for the full year 2021.Excluding special cost items, the EBITDA loss was NOK 5.0 million in the fourth quarter and NOK 3.6 million for the full year.
The company is further sharpening its focus on its cloud-based SaaS products and services, and in January entered an agreement to transfer the responsibility for non-core ‘on-premise’ contracts to Cillco Technology, who will also take over 26 employees currently employed in House of Control’s subsidiary DinERP.
The agreement reduces ARR by approximately NOK 14 million and generates an impairment of NOK 52.8 million that has been charged to the Income Statement for the fourth quarter and full year 2021. However, the transaction also reduces the annual cost base by approximately NOK 30 million, and the company expects to turn EBITDA-positive in 2022 and Cash EBITDA-positive including capitalized R&D investments in 2023.
“We are sharpening our focus and reducing costs and believe this will accelerate our growth and strengthen our financial performance. We will turn cash flow positive at an earlier point in time, and see no need for additional funding to realize our growth plans towards the NOK 500 million target,” adds Sten.
The company will host a webcast today at 08:00 CET. Please use the following link to access the presentation:
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 develops SaaS (Software as a Service) solutions. These are digital tools that the CFO can easily apply to improve the performance of the finance department and – ultimately – the whole company. The CFO toolkit contributes to at least four important tasks: Cut costs, save time, reduce risk, and improve compliance – all key ingredients of a better-working finance department. Private and public enterprises use the software to manage contracts and assets, comply with IFRS 16 requirements, communicate with suppliers, and organize procurement. House of Control’s strong revenue growth is supported by a unique salesforce, and approximately 94 percent of sales are annual recurring revenues.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.