REG - Smartspace Software - Trading Update

Smartspace SoftwareAnnouncement

08/08/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230808:nRSH5655Ia&default-theme=true

RNS Number : 5655I  Smartspace Software PLC  08 August 2023

 

8 August 2023

 

SmartSpace Software Plc

("SmartSpace", the "Group" or the "Company")

Trading Update

For the six-month period ended 31 July 2023

SmartSpace Software plc, (AIM:SMRT) the leading provider of 'Integrated Space
Management Software' for smart buildings and commercial spaces, is pleased to
announce a trading update for the six month period ending 31 July 2023. All
figures are unaudited.

Financial highlights:

·      Half year revenue expected to be approximately £2.7m up 15%
year-on-year (31 July 2022: £2.4m**)

·      Annual recurring revenue ("ARR") up 21% year-on-year to £5.8m*
(31 July 2022: £5.0m or £4.8m on constant currency basis**; 31 Jan 2023:
£5.6m or £5.4m on constant currency basis**)

·      Monthly average revenue per user ("ARPU") increased by 9% year on
year to £94* (31 July 2022: £90 or £86 on constant currency basis)

·      Cash balance at the period end of £2.2m (30 April 2023: £1.25m)
with no debt

 

Operational Highlights:

·      Disposal of Anders + Kern U.K. Limited ("A+K") during the period
with net cash proceeds of approximately £1.1m

·      4,991 customers at 31 July 2023 (31 July 2022: 4,548) with 637
new customers added in the half year contributing a £0.5m of new ARR

·      SwipedOn Spaces, which extends the platform to incorporate
bookings of desks, parking spaces, EV charging points, bike parking spaces and
other assets into a single fully integrated platform, due to commercial launch
in August

·      SwipedOn released into Taiwan, China and Germany

 

* For customers invoiced in currencies other than pounds sterling ARR and ARPU
is calculated by translating charges at the applicable 31 July 2023 exchange
rate. Comparative period ARR is provided on a constant currency basis by
retranslating foreign currency amounts at the 31 July 2023 exchange rate.
Relevant percentage comparisons are calculated against the constant currency
figures

** Comparative figures have been restated on a like-for-like basis to exclude
A+K

The disposal of A+K in the first half of the year is the final stage of the
journey to becoming a pure SaaS software business focussed on delivering
workplace software solutions to a global market. The net disposal proceeds of
approximately £1.1m will be used for working capital purposes and to invest
in growth of the business where opportunities arise.

There was a strong return in sales momentum in SwipedOn during May, June and
July. With digital marketing now back inhouse, there has been an increase in
both the quality and volume of leads. New customer wins have been achieved on
a lower Customer Acquisition Cost ("CAC") than previously, further improving
our LTV:CAC ratio. As a result, growth in customer numbers over the last six
months has been the highest recorded in the last two years, adding 637 new
customers in the period. Of these, 128 were signed in July, 103 in June, and
125 in May. A new pricing model, bundling addon's with main product lines, was
implemented towards the end of the period and is expected to raise new
customer ARPU in second half of the year.

SwipedOn Spaces is now in its final stages of development and the commercial
launch will be available to customers later in August. This functionality is
an extension to the SwipedOn platform and will be accessed by customers via
their SwipedOn admin portal. Initially, the main focus for Spaces will be the
SwipedOn customer base. When Spaces is released, it will be made available to
customers via their existing SwipedOn dashboard.

Space Connect also saw an increase in new customer wins in May, June and July.
Whilst Evoko Naso billings weakened over the period in comparison to what was
seen in the second half of FY23, the recent launch of a new version of Naso is
expected to support a new sales drive in the second half of the year. This new
version of Naso integrates room and desk booking into a single app for the
first time as well as offering enhanced functionality and performance.

Outlook

The Board continues to see good opportunity for growth over the coming months
from both new customers and expansion within SmartSpace's customer base, in
particular with the release of Spaces and traction in new markets. As a
result, the Board expects, on a constant currency basis, full year results to
be in line with market expectations.

 Frank Beechinor, CEO of SmartSpace, commented:

"It is great to finally become a pure software business whilst also finding
suitable new owners for A+K, allowing the management team to focus their
energies on developing our software businesses. A+K continues to be a reseller
for Space Connect and we are looking forward to a continuing good working
relationship with the new owners.

 

Both SwipedOn and Space Connect have shown good growth over the last few
months with strong growth of new customers in SwipedOn, along with some
sizeable new deals for Space Connect. I'm excited by the prospects following
the release of Spaces, our new platform that is due for release during
August."

 

We look forward to providing further details on all aspects of trading when we
announce our Interim results in October."

 

 

Enquiries:

 SmartSpace Plc                                                     via Lisa Baderoon

 Frank Beechinor (CEO)

 Kris Shaw (CFO)

 Lisa Baderoon (Head of Investor Relations)                         +44 (0) 7721 413 496

 lbaderoon@smartspaceplc.com (mailto:lbaderoon@smartspaceplc.com)

 Canaccord Genuity                                                  +44 (0) 20 7523 8000

 Nomad and Broker

 Adam James

 Harry Rees

About SmartSpace Software Plc

SmartSpace Software plc is a fast-growing SaaS-based technology business,
designing and building smart software solutions. The Company's software
solutions help transform employee engagement with modules which include
visitor management, desk management, meeting room management and analytics.

The operating brands of the business comprise of:

 

·    SwipedOn - SaaS visitor management, desk booking (www.SwipedOn.com
(http://www.swipedon.com/) )

·    Space Connect - SaaS meeting room and desk booking
(www.spaceconnect.co (http://www.spaceconnect.co/) )

 

For more information go to: www.smartspaceplc.com
(http://www.smartspaceplc.com/) .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFLDTVIDIIV