Financial Results For the Third Quarter of 2023

The transformation towards recurring revenues and Software as a Service (SaaS) continues. SaaS revenues were NOK 105 million in the quarter, an increase of 50 percent compared to the third quarter of 2022. Recurring revenue constituted 76 percent of total revenues and reached NOK 254 million in the quarter, an increase of 40 percent from the third quarter of 2022.  

“We’re excited that our annualised ARR base broke the barrier of 1 billion NOK in the quarter, representing an important milestone for Volue. This demonstrates that we hold true to our promise of powerful growth in ARR and SaaS as we are reaping the benefits of the investments we’ve made in our platform. Through our go-to-market strategy, we’re building a robust SaaS company, and our success in doing so is evident from the growth we’ve delivered in ARR and SaaS revenues since listing in 2020,” says Trond Straume, CEO of Volue. 

Volue achieves sustained growth through key customer acquisitions, highlighted by strategic wins in the quarter. Notably, the company expanded its presence in Japan, reaching 22 paying customers. The proven market fit in Japan serves as a clear testament to the value that Volue brings customers – also in virgin markets without decades of track record. 

The strategic review of the ownership in Industrial IoT is still underway, and it’s deemed appropriate to keep the unit somewhat separate from the Energy segment. Hence, Industrial IoT is reported under “other segments”, and all figures referred to in the Energy segment are excluding Industrial IoT.  

In the third quarter of 2023, revenues from the newly acquired Enerim Oy's Energy Market Services division are recognised in the Energy segment. On the other hand, the Energy segment faced headwinds in non-recurring volatility-driven revenues when compared to the third quarter of 2022. The abnormal volatility revenues is estimated to NOK 60 million for the full year 2022. As indicated and expected, these revenues came down, and the effect was approximately NOK 30 million in the third quarter.  

In sum, the Energy segment grew at a rate of 16 percent compared to the same quarter last year, while the organic growth versus the same period was -3 percent. Achieving organic revenues almost on par with the same period last year in the absence of the non-recurring revenues suggests strong development in ARR and SaaS and a very healthy improvement in the underlying business. 

“With decreased non-recurring revenues and great progress in ARR and SaaS, we’re left with significant uplifts in their respective shares of revenue for the last twelve months. The fact that we’ve also been able to improve margins from the corresponding quarter last year speaks volumes to the underlying performance of our business,” Straume says.  

Going forward, Volue sees substantial potential in the growth of batteries, wind and solar. The acquisition of the Enerim Energy Market Services division and increased focus on portfolio management as a service is a direct consequence of the group’s belief in this segment. 

“We have hit the ground running on the integration of Enerim and the formation of Volue Energy Market Services. The business line is providing Portfolio Management as a Service to a growing market, including small to medium wind, solar and battery players. Combined, we are the Nordic market leader, positioned to be a leader in Europe by 2030,” Straume says. 

“We are steadfast in our ambition to become the number one software and software-backed service provider to the European energy system by 2030. At the speed markets are changing, opportunities are opening up for Volue across the board, and our task is to pursue the right ones. In order to do so, Volue will continue to be focused, both organically and structurally,” Straume continues. 

Volue maintains the following long-term guidance to the market 

• Annual long-term organic growth of 15 percent  
• Target of NOK 2 billion in revenues by 2025, including M&A 
• Year-by-year increases of adjusted EBITDA margin, cash conversion, share of ARR and SaaS revenues 

*EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as part of the APM section of the third quarter 2023 presentation on page 32.