SmartSpace Software Plc, (LON:SMRT) the leading provider of ‘Integrated Space Management Software’ for smart buildings and commercial spaces ‘visitor reception, desks and meeting rooms’, has announced its unaudited Interim Results for the six months ended 31 July 2022. This follows on from a recent Trading Update, which was announced on 16 August 2022.
Financial Highlights:
· Total Group revenues up 45% to £3.67 million (31 July 2021: £2.52 million)
· Strong growth in Annual Recurring Revenue* (“ARR”) to £5.17m at 31 July 2022 up 32% year-on-year on a constant currency basis (31 July 2021: £3.90m)
· Recurring revenues up 49% to £2.37m (31 July 2021: £1.59m)
· Improved Adjusted LBITDA** of £0.50 million (31 July 2021: £1.29 million) generated from growth in high margin recurring revenue as overheads remains constant
· Loss per share from continuing operations of 3.87p (31 July 2021: Loss per share 5.49p) and total loss per share of 3.77p (31 July 2021: Loss per share 5.49p)
· Reduction in cash consumption in the period with cash used in continuing operations amounting to £0.22m (31 July 2021: £1.33m) as trading losses reduce and a net positive movement in working capital occurs
· Cash balance at 31 July 2022 of £2.32 million (31 July 2021: £3.37 million) and a net cash position of £1.97 million (31 July 2021: £2.97 million)
· Cash balance at 30 September 2022 of £1.92m
· Group ARR* £5.65m at 30 September 2022
Operational Highlights including post review period
SwipedOn
· SwipedOn ARR* increased by 35% year-on-year to £4.50m at 31 July 2022 (31 July 2021: £3.33m) with this growth continuing during August and September to £4.96m at 30 September
· Monthly Average Revenue Per User* (“ARPU”) increased by 44% year on year to £84 at 31 July 2022 (31 July 2021: £59) and has advanced further to £91 at 30 September
· SwipedOn locations increased to 7,506 at 31 July 2022 (31 July 2021: 7,003) and further to 8,129 at 30 September with the inclusion of 550 Thermo Fisher Scientific locations
· Since our February 2022 contact win announcement, Thermo Fisher Scientific have now engaged SwipedOn until Q3 2023 with a contract extension to assist with their Covid-19 testing program for schools
· SwipedOn’s largest Desk customer is now managing over 2,300 desks from 16 locations in APAC region and is intending to deploy into their US offices
Space Connect
· ARR* up 35% year on year to £0.55m at 31 July 2022 (31 July 2021: £0.41m) increasing to £0.58m at 30 September
· At 31 July 2022, Space Connect had 73 customers (31 July 2021: 41)
· Sales of Evoko Naso continue to show growth with billings ahead of management expectations for the six month period and in subsequent months.
Anders & Kern (A&K)
· A&K revenue for the 6 months to 31 July 2022 increased by 36% to £1.30m (31 July 2021: £0.96m) as Covid-19 restrictions are no longer impacting sales
Outlook
· Trading is in line with expectations for FY23
· Continuing to deliver growth in ARR to transition business to cashflow breakeven towards the end of FY23
* For customers invoiced in currencies other than pounds sterling ARR and ARPU is calculated by translating charges at the applicable 31 July 2022 exchange rate (with the exception of the 30 September 2022 ARR and ARPU which is set at exchange rates on that date). Comparative period ARR is provided on a constant currency basis by retranslating foreign currency amounts at the 31 July 2022 exchange rate.
** LBITDA is the loss for the period from continuing operations before net finance costs, tax, depreciation, amortisation, reorganisation and transactional items, impairment charges and share based payment charge
Commenting on outlook, Frank Beechinor, CEO of SmartSpace, said:
“As indicated in our recent Trading Update, our primary objective is to build a high growth SaaS business with strong recurring revenues. The results outlined above for SwipedOn and Space Connect illustrate that these key objectives are being achieved. We continue to see good momentum in SwipedOn and it is great to see the momentum return in Space Connect after a slow start to the year. It is encouraging to see a significant uplift in Evoko Naso sales which have continued to grow in recent months. Our priorities remain focused in continuing to deliver strong growth in ARR, growing our new international geographies and becoming cashflow breakeven towards the end of FY23, to maximise value for shareholders over the coming years.”
A copy of these interim results together with a results presentation with further information on the Company will be posted on the Company’s website at: www.smartspaceplc.com.
