Quarterly Results
Q1 2024
Melissa Mulholland, CEO Brede Huser, CFO
7 May 2024
Q1 2024
Disclaimer
The statements contained in this presentation may include forward-looking statements, such as statements of future expectations regarding the Company's results of operations, financial condition, liquidity, prospects, growth and strategies. These statements are based on the management's current views and assumptions and involve both known and unknown risks and uncertainties and assumptions that are within and outside the management's control. Although the company believes that the expectations implied in any such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Actual results, performance or events may differ materially from those set out or implied in the forward-looking statements. No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved. The forward-looking statements included in this presentation represent the company's views as of the date of this presentation and subsequent events and developments may cause the company's views to change. The company disclaims any obligation to update forward-looking information except as required by law. Readers should not place undue reliance on any forward-looking statements. This presentation and the information contained herein is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation contains alternative performance measures, or non-IFRS financial measures. Definitions and calculations are presented on page 18 in the financial report. This presentation is subject to Norwegian law, and any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo as legal venue.
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Q1 HIGHLIGHTS
Strong start of the year
Amounts in NOK
Solid growth driven by continued high demand for Software and Cloud
Adjusted EBITDA development as planned
Strong working capital performance
1,474m Gross Profit
+17% growth
13.8% | Adj. EBITDA Margin 1 |
-0.9bps change |
-1,085m Net working capital 867m improvement
1 Adjusted EBITDA divided by Gross Profit
MARKET DYNAMICS
Crayon is uniquely positioned across key fundamental market drivers
Software and Cloud | Services | ||||||||
Gross Profit | Gross Profit | +19% | |||||||
+24% | |||||||||
MNOK | MNOK | ||||||||
2 441 | |||||||||
3 149 | |||||||||
+20% | 2 543 | +5% | 2 047 | ||||||
MNOK | |||||||||
574 | 605 | ||||||||
799 | |||||||||
665 | |||||||||
Q123 | Q124 | LTM Q123 | LTM Q124 | Q123 | Q124 | LTM Q123 | LTM Q124 | ||
EBITDA | 51% | 53% | 53% | 50% | EBITDA | ||||
Margin 1 | 7% | -1% | 11% | 2% | |||||
Margin 1 |
- Despite challenging macro environment software and cloud licensing maintains steady growth
- Strong demand across multiple vendors with GenAI expectations turning to reality - Microsoft CoPilot capturing mindshare on AI
- Companies preparing their IT environments for GenAI with increase in licensing and security driving demand for upgrade to Microsoft M365 E5
- Solid start of Copilot adoption - customers testing CoPilot prior to implementing at full scall due to ROI and infrastructure requirements
- Customers focus on optimization and cost savings in projects, while many still in early stages of cloud adaption
- Cloud migration and modernization driven by requirement to enhance flexibility, scalability, and security
- Essential for customers to get their IT estate ready for GenAI - requires modern IT infrastructure to to secure and manage data effectively
- Commercialization of GenAI making it more accessible and effective, driving adaption across industries and use cases
1 Adjusted EBITDA divided by Gross Profit
FINANCIAL REVIEW
Market demand for software and cloud remain strong
Q1 Gross Profit by business area
NOK million
400 | 71 | 1 474 | |||
204 | |||||
320 | |||||
479 | |||||
SW & | SW & | SCE | Consulting | HQ/ | Q1 2024 |
Cloud | Cloud | Elim | |||
Direct | Channel |
Q1 Adj. EBITDA by business area
NOK million
222 | 12 | ||||
-17 | |||||
199 | 203 | ||||
-213 | |||||
SW & | SW & | SCE Consulting HQ/ | Q1 2024 |
Cloud | Cloud | Elim | |
Direct | Channel |
Growth | 19% | 22% | 15% | 1% | n/a | 17% | EBITDA | 42% | 69% | 6% | -4% | n/a | 14% |
YoY | Margin 1 | ||||||||||||
Constant Currency | 14% |
1 Adjusted EBITDA divided by Gross Profit
FINANCIAL REVIEW
Strong growth in Europe - Nordics negatively impacted by Consulting
Q1 Gross Profit by market cluster
NOK million
158 | 111 | 1 474 | |||
328 | |||||
303 | |||||
574 | |||||
Nordics | Europe | APAC | US | HQ/Elim | Q1 2024 |
& MEA |
Q1 Adj. EBITDA by market cluster
NOK million
37 | 21 | 203 | |||
148 | -1 | ||||
-2 | |||||
Nordics | Europe | APAC | US | HQ | Q1 2024 |
& MEA |
Growth | 7% | 31% | 14% | 9% | n/a | 17% | EBITDA | 26% | -1% | 11% | -1% | n/a | 14% |
YoY | Margin 1 | ||||||||||||
Constant Currency | 14% |
1 Adjusted EBITDA divided by Gross Profit
ANNOUNCEMENT
Crayon appointed an authorized Cloud Commerce Manager for Broadcom in Asia Pacific
Crayon will:
- Welcome all VMware Cloud Service Provider (VCSP) partners and provide them with support and services to help adopt the VMware Cloud Foundation, alongside storage, ransomware and disaster recovery, and application platform services.
"We're confident that Crayon has the knowledge and expertise to help partners deliver a consistent VCF private cloud experience to their customers and provide VCSP partners with world-class service and support."
Ahmar Mohammed
Vice President, Partners, Managed Services, and Solutions GTM,
VMware Cloud Foundation Division at Broadcom
CUSTOMER STORY
Crayon helps Verdane accelerate productivity with Microsoft Copilot
Verdane is a specialist growth investment firm that partners with tech-enabled and | |
Norway | sustainable European businesses. Their team of over 140 investment professionals |
and operating experts are in Berlin, Munich, Copenhagen, Helsinki, London, Oslo, | |
and Stockholm. It has an AUM (assets under management) of €6.9 billion. |
Customer Problem
- Wanted to streamline operations with AI.
- Aimed to establish Microsoft 365 Copilot as a foundational tool to drive efficiency and competitiveness.
- Sought to enhance productivity and output quality across various operational teams.
- Used to manually sift through numerous documents for information.
- Needed efficient tools for market research and pitching in its competitive industry.
Crayon Solution
- Partnered with Crayon to integrate Copilot AI into its operations.
- Verdane became the largest Copilot Cloud Solution Provider client in Western Europe.
- Crayon organized and adapted readiness workshops to introduce Copilot to the organization.
- Crayon is supporting the wider Copilot rollout through dedicated assistance, tutorial videos, templates.
Outcome and next steps
- 87% of operational experts reported enhanced quality and productivity in their workday.
- Improved output quality across the Microsoft Office Productivity Suite by 67%.
- Copilot streamlined market research and pitching processes, enhancing Verdane's competitiveness.
"We were early adopters, and we already knew a lot about AI. So instead of putting us into a standardized project plan, Crayon adapted to our actual needs, which enabled us to move quicker."
Morten Reinhardtsen
Verdane's Chief Information Officer
Crayon Group - Internal Only
HIGHLIGHTS OF OUR ENVIRONMENTAL, SOCIAL AND GOVERNANCE PERFORMANCE IN 2023
Key ESG publications
2023 Full ESG Report | 2023 Summary ESG Report | 2023 Human Rights |
Transparency Statement |
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Financial
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Crayon Group Holding ASA published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 05:02:07 UTC.