Q3 2024 Carasent ASA Earnings Call Transcript
Key Points
- Carasent ASA (OSL:CARA) reported a solid quarter with improvements across all areas, indicating a positive trend expected to continue.
- The company achieved 23% organic growth in contracted ARR, surpassing their target of 20% for the next year.
- Carasent ASA is on track to list on NASDAQ, with the first day of trading expected in December, having overcome major obstacles.
- The company has seen a significant increase in sales discussions with new customers, including a recent large sale.
- Gross margins improved from 80% to 85%, driven by strategic divestments and renegotiated supplier costs, indicating sustainable financial health.
- Carasent ASA faced high one-time costs in the quarter related to the NASDAQ listing and acquisition projects, impacting short-term financials.
- There is a risk of delay in the worldwide implementation of a major contract, which could affect the company's financial goals.
- The company is experiencing challenges with the VDR and Millennium system integration, which could lead to legal processes and financial impacts.
- Free cash flow was negative in Q3, primarily due to working capital effects and one-off costs, despite overall financial improvements.
- The launch of Web.X in Germany is taking longer than expected, with certification now anticipated in the first half of 2025.
Good morning and welcome to our presentation of the third quarter. My name is Don Oehman, I'm CEO and with my son Martin Bjornstad, our CFO we'll start with the company update and then some more and continue with the financial update. looking at the quarter We have a quarter of solid improvements in all areas, a trend which we see we continue each quarter going forward.
We have a good organic growth and almost all that growth translates into higher {ebita}, which we are very pleased with. And as I say, that's a trend we see continuing forward.
We are now on the home stretch of listing on the NASDAQ.com. We aim to have the first day of trading in December and we believe that that we are now past all major obstacles, even though there are some final approvals still waiting in the quarter, we have one high one time cost and this is related to this {real thing}, but also from the EJ process and the acquisition project in Germany. So quite high one time cost in the quarter which we see going be becoming lower, going forward. In the report, I
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