Trading Update

RNS Number : 0894P

Smartspace Software PLC

07 February 2023

 

7 February 2023

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR").  Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

SmartSpace Software Plc

("SmartSpace", the "Group" or the "Company")

Trading Update
For the year ended 31 January 2023

Continued growth in line or ahead of expectations across key metrics

Notice of Investor Meet Company Presentation | 11am on Thursday 9 February 2023

SmartSpace Software plc, (AIM:SMRT) the leading provider of 'Integrated Space Management Software' for smart buildings and commercial spaces, is pleased to announce a trading update following the Company's year end of 31 January 2023 ("FY23"). All figures are unaudited.

The Group has been progressing its objective to build a high growth SaaS business with strong recurring revenues. Further to the trading update issued on 17 January 2023, we are pleased to confirm that results for the full year ending 31 January 2023 are either in line or ahead of market expectations across our key metrics.

Financial Highlights:

· Revenue for the year ended 31 January 2023 up 36% to £ 7.0m (FY22: £5.1 m )

· Continued momentum of Annual Recurring Revenue* ("ARR") up 26% year on year to £5.8m as at 31 January 2023 (FY22:£4.9m or £4.6m on a constant currency basis)

· Strong growth in recurring revenue up 45% to £4.9 m (FY22: £3.4 m)

· Improved adjusted LBITDA** generated predominantly from growth in recurring revenues, expected to be better than market expectation

· The Group had gross cash of £2.0m (net cash of £1.6m) as at 31 January 2023 (30 September 2022: £1.9m; net £1.6m), and thus was cashflow breakeven for the final four months of the financial year.

Operational Highlights:

SwipedOn

· SwipedOn ARR* increased by 29% year on year to £5.0m at 31 January 2023 (FY22: £4.2m or £3.9m on a constant currency basis)

· Monthly average revenue per user* ("ARPU") increased by 31% year on year to $171 (£90) at year end (FY22: NZ$154 (£75) or NZ$133 (£69) on a constant currency basis)

· SwipedOn locations increased to 8,298 as at 31 January 2023 (FY22: 7,076)

· SwipedOn's largest Desk customer continues to grow, now managing over 4,000 desks across 22 locations in four countries

· Following on from our 2022 release in Korea we are now well advanced on preparations to launch SwipedOn in China, Hong Kong and Taiwan

· Development of single platform solution for both SwipedOn and Space Connect customers ("SwipedOn Spaces") nearing completion with commercial launch expected within the coming half year.

Space Connect

· A RR* increased by 7% year on year to £0.7m at 31 January 2023 (FY22: £0.6m)

· Income from Evoko Naso ahead of management expectations generating £0.4m of billings (FY22: £0.1m), which accelerated as we moved through H2

· Order received in January 2023 from new Far Eastern customer with revenue yet to be recognised, and significant prospects for expansion in FY24.

Anders & Kern (A+K)

· A+K revenue to 31 January 2023 increased 22% to £2.1m (FY22: £1.7m)  

· Order received on 30 January 2023 from a major UK education institution which will generate significant revenues for the business in FY24.

* For customers invoiced in currencies other than pounds sterling ARR and ARPU is calculated by translating charges at the applicable 31 January 2023 exchange rate. Comparative period ARR is provided on a constant currency basis by retranslating foreign currency amounts at the 31 January 2023 exchange rate. Relevant percentage comparisons are calculated against the constant currency figures

** LBITDA is the l oss for the period from continuing operations before net finance costs, tax, depreciation, amortisation, reorganisation and transactional items, impairment charges and share based payment charge

SmartSpace expects to announce its Final Results for the year ended 31 January 2023, in May 2023.

Frank Beechinor, CEO of SmartSpace, commented:

"We have continued to make good progress despite challenging macro-economic indicators and inflationary environment.

SwipedOn has performed well in the past year with growth in ARR and locations. November was its busiest month in over a year for new customer sign-ups and we have seen churn decline, particularly from users who signed up during Covid for social distancing rule enforcement. SwipedOn continues to be cash generative and will now be reporting its first full year EBITDA profit, a significant milestone to achieve.

We have had more churn than we would have liked from our Space Connect base. As the Covid-related regulatory pressure eased last year, these churns came up at annual renewal. However, more positively, new customers are purchasing our solutions to implement their space optimisation policies which ultimately will lead to 'stickier' customers.  

Cash at year end was the same as when we last reported in September, thus cashflow breakeven for the last four months of the financial year, which is a positive indicator of the momentum of the underlying business.

Even despite the economic headwinds and market turmoil, we believe that we are in a good place and on track to ensure we achieve sustained growth for the business going forward. I look forward to providing a further update in May."

Investor Meet Company Presentation

Frank Beechinor, CEO and Kristian Shaw, CFO will provide a live presentation, relating to the Trading Update, via the Investor Meet Company platform, on 9 February 2023 at 11:00am GMT.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9:00am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet SMARTSPACE SOFTWARE PLC via:

https://www.investormeetcompany.com/smartspace-software-plc/register-investor

Investors who already follow SMARTSPACE SOFTWARE PLC on the Investor Meet Company platform will automatically be invited.

Enquiries:

SmartSpace Plc Frank Beechinor (CEO) Kris Shaw (CFO) Lisa Baderoon (Head of Investor Relations) [e-mail]	via Lisa Baderoon [phone]
Canaccord Genuity Nomad and Broker Adam James Harry Rees	[phone]

About SmartSpace Software Plc

SmartSpace Software plc is a fast-growing SaaS-based technology business, designing and building smart software solutions. The Company's software solutions help transform employee engagement with modules which include visitor management, desk management, meeting room management and analytics.

The three operating companies in the Group comprise:

· SwipedOn - SaaS visitor management, desk booking ( www.SwipedOn.com )

· Space Connect - SaaS meeting room and desk booking ( www.spaceconnect.co )

· Anders & Kern - distribution and technical support ( www.anders-kern.co.uk )

For more information go to:  www.smartspaceplc.com .

 

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