Half Year 2026 Carasent AB (publ) Earnings Call Transcript
Key Points
- Carasent AB (publ) (FRA:E0C) reported highly recurring revenues with more than 90% and a 50% organic ARR growth.
- The company successfully acquired InfoSolutions, a key player in the healthcare sector, which added around 40 million of ARR.
- Carasent AB (publ) (FRA:E0C) achieved a strong sales performance in Q2, with new customer acquisitions and add-on services increasing from 4 million in Q1 to 6 million in Q2.
- The company reported a 29% growth in ARR, with a net revenue retention of 110%, indicating strong customer retention and upsell.
- Carasent AB (publ) (FRA:E0C) maintained strong cost control, with an adjusted EBITDA margin of 11% and a free cash flow of 26% of revenue for the first half of 2026.
- The profitability of InfoSolutions has been weak for many years, requiring substantial cost savings and restructuring.
- The gross margins were slightly lower compared to last year, partly due to InfoSolutions having a lower gross margin than the rest of the group.
- The company faced challenges in the German market with higher churn rates from legacy products.
- There is a cautious adoption of the MedSum AI system due to regulatory concerns and the conservative nature of healthcare professionals.
- The implementation and consulting side of the business experienced lower growth, particularly in Norwegian projects.
Good morning and welcome to our presentation of this second quarter. My name is Daniel Ãhman and with me are CFOs and Martin Bjornstadt.
Just a quick overview first. At the center of any clinic or hospital is the HR system. It is the same for Carsent, where we offer a number of HR systems for different markets and needs.
In addition, we offer a number of platform solutions. That connects the caregivers with each other and other important players in the sector.
And as you can see, we have highly recurring revenues with more than 90%, a 50% organic ARR growth, and a 110% net revenue retention in the quarter.
Looking at some of the highlights of the second quarter, I'm very happy that we finally acquired InfoSolutions, that's something we have been working with for a number of years. It's an extremely important player in the sector and for our products. And I will talk more about that within short.
In second quarter, we've had very strong sales, both in new customers and add-on services. As
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