Financial Results for the Third Quarter 2022

Adjusted EBITDA* was NOK 50 million, with an adjusted EBITDA margin of 17 percent..

The transformation towards recurring revenues and Software as a Service (SaaS) continues. SaaS revenues were NOK 70 million in the quarter, an increase of 27 percent compared to the third quarter of 2021.

“This was a strong quarter for Volue. We are starting to reap the benefits of the investments in our SaaS platform. As a result, margins are expanding from the first half of the year, as we indicated they would. We also have a solid platform for continued growth and closed more than 800 sales in the third quarter, despite this being a seasonally slower period. This makes me confident in our growth and margin outlook, says Trond Straume, CEO of Volue.

Volue reported third quarter 2022 operating revenues of NOK 294 million, up from NOK 239 million in the corresponding quarter last year. Adjusted EBITDA* for the quarter totaled NOK 50 million (48), and EBIT was NOK 19 million (10).

“Our Energy segment continues to drive revenue growth as volatile markets increase the need for advanced software among our European energy customers. I would also like to highlight important progress in our Infrastructure segment, for instance among construction customers in Sweden. Within the Power Grid segment, we continue to develop our offering for the emerging market opportunities created by distributed energy resources such as solar panels and electrical vehicles. In short, we see abundant growth opportunities for Volue,” Straume continues.

Recurring revenue constituted 62 percent of total revenues and reached NOK 181 million in the quarter, an increase of 19 percent from the third quarter of 2021.

“In the third quarter, we continued to combine growth with strong cash flow, further strengthened our robust balance sheet. This puts us in an excellent position to pursue the growth opportunities we have identified, both through our own initiatives and targeted M&A activities,” says Straume.

Volue continues to prioritise strategic investments in its SaaS platform and expansion into new markets, which creates short- to mid-term EBITDA impact and increased R&D capitalisation in line with plans.

Volue has set the following priorities and ambitions for the fourth quarter of 2022:

• Further utilise synergies to strengthen margins
• Adjusted EBITDA margins improving from the first half of 2022
• Continue to grow ARR business in line with 2025 targets and 2021 performance
• Expand activities outside Europe
• Strategic investments for international growth
• Structural growth through M&A

*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 2022 report on page 22.