Q1 2025 Strongpoint ASA Earnings Call (Q&A Session) Transcript
Key Points
- Recurring revenue increased by 17% to NOK372 million, driven by a 68% growth in license revenues.
- StrongPoint ASA (LTS:0JEZ) secured its first auto store win in the UK, marking a significant milestone.
- The company initiated two AI-powered theft prevention pilots in Scandinavia, enhancing its security solutions portfolio.
- EBITDA improved due to a change in product mix and cost reductions, despite a 3% decline in total revenue.
- StrongPoint ASA (LTS:0JEZ) has a strategic partnership with Vision Group, which is expected to enhance its platform solutions offerings.
- Total revenue for the quarter decreased by 3% to NOK347 million.
- The EBITDA margin remains low at 2.9%, indicating room for profitability improvement.
- Tariff uncertainties in the US are impacting discussions about the rollout of locker installations.
- The rollout of the Sainsbury's order picking solution is delayed, with completion now expected by summer 2026.
- The weak NOK had a limited impact on financial results, but currency fluctuations remain a concern.
Good morning, everybody. Welcome to StrongPoint Q1 2025 Q&A.
We have here Jacob and Marius from StrongPoint, CEO and CFO. To start with, a quick recap on the financials. Recurring revenue is up 17% this quarter to NOK372 million.
Total revenue for the quarter came in at NOK347 million, and we delivered an EBITDA of NOK10 million with a margin of 2.9%. On company operations, again, three things to highlight. We got a first auto store win in the UK.
Two AI powered theft prevention pilots in Scandinavia with a formal pioneer ship partnership signed with the AI powered anti-theft company (Cy) Group.
And we have initiated a 3rd Ven Safe theft prevention pilot in the UK.
Questions & Answers
So, to start off with, first question is for you, Jacob, on recurring revenue.
Recurring revenue grew by 17%. What are the main drivers behind this growth and how do you see the role of recurring
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