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 2021. This follows on from a recent Trading Update, which was announced on 22 October 2021.
Financial Highlights:
· Total Group revenues up 8.8% to £2.52 million (FY21 H1 £2.32 million)
· Annual recurring revenue (“ARR”) up 53% year on year to £3.78m at 31 July 2021 (FY21 H1: £2.46m). This momentum has continued into H2 with ARR of £4.11m as at 30 September
· Recurring revenues up 52% to £1.59m (FY21 H1: £1.05m)
· Gross margin on continuing operations continued to improve to 71% (FY21 H1: 51%), reflecting an increased mix of higher margin SaaS revenues, in-line with stated strategy
· Group Adjusted LBITDA of £1.29 million (FY21 H1: £0.87 million)
· Loss per share 5.49p (FY21 H1: Loss per share 3.47p)
· Cash balance at the period end of £3.37 million (FY21 H1: £1.56 million) and a net cash position of £2.97 million (FY21 H1: £1.14 million)
· The Group had cash of £3.25 million at 20 October 2021
Operational Highlights including post review period
SwipedOn
· SwipedOn ARR increased by 43% year-on-year to £3.21m at 31 July (FY21 H1: £2.25m) with this growth continuing during August and September to £3.47m at 30 September
· Monthly average revenue per user (“ARPU”) increased by 32% year on year to £56 at 31 July (FY21 H1: £43) and has advanced further to £61 at 30 September
· SwipedOn locations increased to 7,003 at 31 July (FY 21: 6,741) with customer numbers at 4,747 (FY21: 4,735) as SwipedOn targets higher value, multi-location customers
· Customer churn at lower levels than expected and focussed on single site customers, often on lower value price plans. Customer churn in the six-month period averaged 14% whilst revenue churn was 9%
· SwipedOn Desks now available to entire customer base with positive feedback received to date
Space Connect
· ARR up 157% to £0.41m in the six-month period to 31 July and has progressed further to £0.49m at 30 September
· At 31 July, Space Connect had 41 customers, an increase of 28 new customers in the six month period. Subsequently increased by a further 18 customers to 59 in total at 30 September
· 43 reseller agreements now in place with 14 partners delivering revenue to date. Of the 29 partners who have yet to deliver revenue, 18 have deals in the pipeline. First partners signed in the USA.
· Sales of Evoko Naso below expectation; impacted by Covid-19 as offices in Evoko’s key markets not yet fully back to normal working capacity leading to delayed investment decision making
Anders & Kern (A+K)
· A+K revenue for the 6 months to 31 July 2021 down 27% to £0.96m (H1 FY21 £1.32m) mainly due to the impact of the UK lockdown during the period resulting in a hesitation in returning to the office
Board changes
As announced on 26 May 2021:
· Kris Shaw appointed as Chief Financial Officer
· Philip Wood appointed as Independent Non-Executive Director
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. While Evoko Naso sales continue to be slower than anticipated, we share Evoko’s confidence in the medium and long-term potential of Naso. Our business operations continue to focus on a highly attractive sector, evidenced by a number of major competitors consolidating at high ARR multiples. Our priorities remain focused in continuing to deliver strong growth in ARR and 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.
