Financial Results for the Second Quarter of 2024

The development in operating revenues is a consequence of softer markets for non-recurring volatility-driven revenues, combined with the strategic decision to shift such revenues towards ARR and build a more resilient revenue base over time.  

The transformation towards recurring revenues and Software as a Service (SaaS) continues. SaaS revenues were NOK 135 million in the quarter, an increase of 38 percent compared to the second quarter of 2023. Recurring revenue constituted 71 percent of total revenues and reached NOK 292 million in the quarter, an increase of 24 percent from the second quarter of 2023.  

“SaaS revenues continue to outgrow ARR, which in turn is outgrowing operating revenues, highlighting our unwavering focus on business model transformation. Growth in operating revenues came in on the soft side this quarter. However, the momentum we’re delivering in ARR and SaaS illustrates the strong underlying performance, given the move away from non-ARR,” Says Trond Straume, CEO of Volue. 

Adjusted EBITDA* was NOK 88 million for the second quarter of 2024, compared to NOK 63 million in the same period in 2023 and an improvement in adjusted EBITDA margin from 17 percent to 22 percent. 

"The uplift in profitability comes from organic improvements. The Power Grid segment delivered its strongest Adjusted EBITDA margin since listing, and Infrastructure continues to showcase stellar ARR and SaaS figures. Consequently, the Infrastructure segment benefits from scaling effects, resulting in improved profit margins,” Straume continues. 

In June, Volue announced a significant milestone on the journey towards revolutionising forecast modelling through the new AI-based wind model. The model allows for automated retraining and expanded use of weather inputs. It has accurate modelling tailored for both onshore and offshore wind conditions. Furthermore, the model is capable of adjusting to rapid shifts in the geographical distribution of renewable energy capacity within a country. Consequently, it delivers 20 percent improved accuracy. 

"Our clear ambition is to be the number one software and software-backed service provider to the European energy system by 2030. The strong performance in the first half of 2024 confirms that we are on track," Straume concluded. 

Volue maintains the following long-term guidance to the market 

• Annual long-term organic growth of 15 percent  

• Active M&A agenda with 1-2 deals per year 

• Year-by-year increase of adjusted EBITDA margin, cash conversion, share of ARR and SaaS revenues 

Voluntary cash offer 

On July 8th 2024, the newly established entity, Edison Bidco AS, announced an intention to launch a voluntary cash offer for all outstanding shares in Volue. Edison Bidco AS is controlled by Arendals Fossekompani, Advent International L. P. and Generation Investment Management LLP. The offer, at NOK 42 per share, represents a premium of 51 percent to the last traded price and 39 percent and 50 percent to the 3-month and 6-month volume weighted average price of the date preceding the date of the announcement, respectively. 

*EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as part of the APM section of the second quarter 2024 presentation on page 36.