ARR growth of 42% and revenue growth of 33% in 2020
- ARR +42% year-on-year to NOK 146 million, supported by DinERP and Effectplan acquisitions
- Revenue +47% to NOK 37.5 million in Q4 and +33% to NOK 124.8 million for the full year
- EBITDA of NOK -3.0 million in Q4 and NOK 5.0 million for 2020, including special cost items
- Adjusted EBITDA of NOK 1.7 million in Q4 and NOK 10.2 million for 2020
- Proforma revenue for 2020 of NOK 144.9 million and proforma EBITDA NOK 12.1 million
- Adjusted EBITDA of NOK 17.2 million on a proforma basis, corresponding to a margin of 12%
Høvik, 4 February 2021: House of Control (HOC) reported 47% year-on-year revenue growth to NOK 37.5 million in the fourth quarter of 2020, and 33% growth to NOK 124.5 million for the full year. The growth was supported by the acquisition of DinERP in July, and organic revenue growth was 18% in the quarter, and 19% for the full year.
Annual recurring revenue (ARR) was NOK 146 million at the end of the year, which was an increase of 42% from the end of 2019.
“Growth picked up in the second half of the year and through the fourth quarter, with our sales force setting new sales records in both October and November. New sales in the second half of the year were 66% higher than in the first half of the year, and we carry good momentum into 2021,” says Lasse Sten, Chief Executive Officer of House of Control.
Reported EBITDA showed a loss of NOK 3.0 million in the fourth quarter, including special cost items of NOK 4.7 million mainly related to the listing of the shares on Euronext Growth in October. Adjusted EBITDA was hence NOK 1.7 million. Reported EBITDA for the full year was NOK 5.0 million, including special cost items of 5.2 million. Adjusted EBITDA was hence NOK 10.2 million, corresponding to an EBITDA-margin of 8%. This compares to and EBITDA-loss of NOK 8.0 million in 2019.
House of Control in July acquired the business process solutions company DinERP and followed up with a smaller acquisition of Effectplan in Sweden in December. These acquisitions overall added ARR of NOK 25 million, and organic ARR-growth for 2020 was 18%. Sales to new customers added NOK 21 million, whereas net retention was 98% or NOK -2 million for the full year.
On a proforma basis, including DinERP and Effectplan for the entire 2020, House of Control had proforma revenue of NOK 144.9 million and proforma EBITDA of NOK 12.1 million. Adjusted EBITDA was NOK 17.2 million on a proforma basis, corresponding to a margin of 12%.
“We see strong new sales opportunities and believe upselling and cross-selling of new products to our existing customers also will support revenue growth going forward. We maintain our ambition for an ARR of NOK 500 million by 2025, with increased scale and high leverage generating gradually improved margins going forward,” says Lasse Sten.
The company will host a webcast today at 08:30 CET. Please use the following link to access the presentation:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20210204_6
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
Email: carlfabian@houseofcontrol.no
About House of Control:
House of Control is the leading Nordic SaaS company for financial management solutions. Branding itself as The CFO’s best friend™, 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 July 2020, offering solutions for purchasing processes, supplier and B2B business communication, and travel, time, and expense management. In December the company acquired Swedish Effectplan International AB, adding forecasting and budgeting software to the company’s toolkit. House of Control will continue to expand its offering of valuable commercial management software both organically and through acquisitions.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
