Spire Global, Inc. Price & Performance (SPIR)

I'll now leave the floor to Cecile, who will give you some more details about our financial figures from the quarter.

Thank you, Perrokon, and good morning, everyone. Will take you through the financial results for the fourth quarter and full year 2024, starting with the highlights for the quarter. We use Norwegian Krumnet as reporting currency. I'm pleased to report another quarter of double digit revenue growth and improved profitability as key KPIs like total revenues gross profit, adjusted EBITDA and cash EBITDA all continue to improve. Revenue increased by 13% to €274,000,000 in the quarter, driven by strong development in the real estate business area. The revenue increase is attributable to 9% organic growth and €10,000,000 in new revenue from unbolt with its subsidiaries [indiscernible] We have steady growth in our SaaS revenues, and annual recurring revenue had an increase of 11% to $443,000,000 compared to one year earlier. Including EUR 15,000,000 in annual recurring revenue from IWADI. Margins and profitability are increasing. We had double digit EBITDA growth as adjusted EBITDA increased by 29% to €51,000,000 and the adjusted and the adjusted EBITDA margin increased from 16% to 17%. Cash EBITDA increased from €9,000,000 in the fourth quarter 'twenty three to $20,000,000 in fourth quarter 'twenty four. Net finance of minus €9,000,000 is up from minus €19,000,000 in fourth quarter 'twenty three, positively impacted by gain on interest rate swaps.

Net income in the quarter was $7,000,000 up from minus $17,000,000 in the fourth quarter 'twenty three. The financial result for full year 'twenty four are impacted by a slow start of the year but results have improved during the second half of twenty twenty four. Following strong development in the real estate market in Norway market recovery in Sweden and effects of internal initiatives improve profitability. Revenue for full year 2024 ended at SEK1.1 billion, dollars up 7% from full year 2023. Gross profit up 8%. And bolt with subsidiaries are consolidated with four months and impacts full year revenue with $14,000,000 Adjusted EBITDA of $2.00 $1,000,000 is up 6% and cash EBITDA is up 30% to NOK95 million. Euros Net finance of minus €6,000,000 is up €49,000,000 from full year 2023, impacted by increased financial income of €54,000,000 related to a one off non cash financial gain following the consolidation of unbolt of $32,000,000 gain in fair value interest rate swaps of 30,000,000 and interest on bank deposits.

Net income for full year 2024 of €51,000,000 is up from minus 09/2023. Let's look into some more details in the revenue development. The 13% revenue growth in the quarter is driven by 23% growth in the real estate business area, including €9,000,000 in new revenue [indiscernible] Organic growth in the Real Estate business area is 15%. Forecast Media delivers content marketing and is earlier reported under Other, but was merged with Bulimapa in December. We see double digit revenue growth in Namita, Bulimapa and Netra, following high activity in the real estate market. Within Public Administration, SIGGRY has steady revenue growth of 4%. The underlying growth in annual recurring revenue year on year was 12% when adjusting for the extraordinary churn of €10,000,000 in the beginning of twenty twenty four. The gross margin is up 2%, compared to last year. For full year 2024, Spirit Group's overall revenue increased by 7% to 1,100,000,000.0 Revenue growth adjusted for external order had shown in the beginning of twenty twenty four and by annual election revenue in 2023, was 9%. The unbolt subsidiary, Ebadi, is consolidated with four months and adds revenue of €13,000,000 to the real estate business area in addition to revenue from forecast media earlier reported as other elimination.

Spirit Group delivered its offerings as subscriptions transaction based data and software sales and consulting services. The subscription based revenues are primarily based [indiscernible] and low churn. Subscription revenues are up 4% in the quarter, and 8% for full year 2024, following steady development in annual recurring companies. Transaction based revenue is up 23% in the quarter, impacted by strong development in the real estate market in Norway and market recovery in Sweden. Revenue for full year 2024 is up 8%, although hampered by a weak first quarter. Revenue from consulting constitutes a small part of total revenue in Spirit Group, but our consulting service is an important success factor for implementation and utilization of our data and solutions. There have been fewer upgrade projects in Sike since the majority of customers have migrated to cloud, but this is offset by increased demand for Mirthria's consultant services within climate and sustainability. These are some of the drivers for the quarter's results. I will now dive into more details in the key segments of Spir Group. In the fourth quarter, total revenues in Ambita were 15% to €94,000,000 A major part of the revenues correlates with activity in the Norwegian real estate market and number of properties put out for sale.

Which was up 5% in the quarter. Following the positive development in the real estate market, transaction based revenue was up 16% to $81,000,000 Annual recurring revenue at the December was steady at 41,000,000 commencement of new homes in the fourth quarter was down 3%. When conditions for real estate development improve, it is a expected that this will positively impact Ambita sale of digital maps and electric electronic applications. Gross profit in the fourth quarter is positively affected amounting to €2,500,000 and defined as a nonrecurring item. Adjusted EBITDA was $14,000,000 with stable adjusted EBITDA margin of 14%. Revenue year to date is up 9% to €492,000,000 with 17% adjusted EBITDA margin. Cash EBITDA is up 14% in the quarter and 2% for full year 2024. In the fourth quarter, revenues in Bouille Marta were up 56% to €20,000,000 The wholly owned subsidiary Forecast Media that delivers content marketing was merged with Bulimapa in December 24. Impacted revenue in the fourth quarter with €4,000,000 and that you euros dollars The underlying revenue growth in Bulimapa, excluding Frakas Media, is 23%. Run rate annual recurring revenue from B2B was $53,000,000 which is up 30% from fourth quarter last year. Transaction based revenues from B2C products introduced late twenty twenty three sold as monthly subscriptions, was $4,400,000 It is positive to see that the profitability in Bulimapa is increasing.

Adjusted EBITDA of €2,000,000 is up from nil in the fourth quarter last year, with adjusted EBITDA margin of 9%. Underlying revenue year to date is up 23% to $54,000,000 Total revenue after merger with Forecast Media is €58,000,000 with 10% adjusted EBITDA margin. Cash EBITDA, including Forecast Media, has improved from minus €6,000,000 in fourth quarter twenty twenty three to minus €4,000,000 in fourth quarter twenty twenty four. And from minus €26,000,000 in 2023 to minus €16,000,000 in We are pleased to see continued double digit revenue growth and increased profitability in Mertria. Revenue of €84,000,000 is up 14% from fourth quarter last year. We have seen strong development and market recovery in the Swedish real estate market lately, and transaction based revenues has increased with 34% to $32,000,000 Transaction based revenue in Metaira is highly correlated with the volumes of properties sold and sizes of mortgages taken out. Within banking and finance. Subscription revenue of €28,000,000 is in line with one year earlier in local annual recurring revenue of SEK116 million is at steady pace.

There is a solid demand for Metral's consulting services and Consulting revenues were up €2,000,000 to €22,000,000 Gross profit is up 11% to €52,000,000 with 62% margin. Profitability is increasing in Metria with adjusted EBITDA of €17,000,000 and adjusted EBITDA margin up from 18% in fourth quarter last year, to 20% in the fourth quarter 'twenty four following increased gross profit and cost initiative showing results. Revenue year to date is up 8% to $3.00 $5,000,000 with adjusted EBITDA of $52,000,000 Cash EBITDA is up 82% in the quarter and 50% for full year 'twenty four. EMADI is a new segment in SPEED from September 24 and is consolidated with four months in the full year '24 results. New revenue from Ibadi impacts the fourth quarter with $9,000,000 and full year $24,000,000 with €13,000,000 Ebari owns the software EBIT, which is Norway's most used professional software for valuation engineers. The software offers effective process support, data driven quality assurance and a variation of different valuation reports. It allows direct interaction and sharing of information between real estate agents and Valuers systems for increased security and efficiency. In the fourth quarter, EVID revenues amounted to €9,000,000 with 65% gross margin. Run rate annual recurring revenue from subscription services was €15,000,000 at the December.

Transaction based revenues are related to revenues from conditional reports and other valuation report generated by more than 700 valuation companies [indiscernible] There was a 14% increase in the reports in the fourth quarter, compared to same period one year earlier and a total increase of 8% year over year. Adjusted EBITDA in the quarter was $2,000,000 with 19% adjusted EBITDA margin Cash EBITDA in the fourth quarter is minus $1,000,000 Several initiatives are started to increase profitability in 2025. Approximately 90,000 condition reports are generated through EBIT every year, providing extensive information about the condition of Norwegian homes, combined with data sources from other Spirit Group companies, this will broaden Spirit Group's real estate data coverage with unique information about the conditions of Norwegian houses. SEEKRI continues its steady growth with €73,000,000 in revenues from the quarter, up 4% from fourth quarter 'twenty three. Revenue from subscription sales increased by 6% to $53,000,000 Annual recurring revenue also increased by 6% to €210,000,000 at the end of the quarter. The underlying growth is 12%, when adjusting for the extraordinary churn and end of life products amounting to €10,000,000 reported in the beginning of twenty twenty four. Driven by a stable and high win rate.

There are fewer upgrade projects in CQ Now than in 2023, as majority of customers are migrated to cloud and hence lower [indiscernible] The gross margin is, however, higher for subscription revenues than for consulting revenues, and gross profit of NOK65 million is up 7%. Adjusted EBITDA in the quarter was 23,000,000 with 32% adjusted EBITDA margin. Revenue year to date is up 3% when excluding biannual revenue from Adjusted EBITDA for full year 2024 ended at $81,000,000 with 30% adjusted EBITDA margin. Cash EBITDA is up 20% in the quarter and 10% for full year '20 As an innovative software house, development of new functionality and new features on existing products to strengthen our market leading positions and Total CapEx in full year 'twenty four was $99,000,000 This is $2,000,000 higher than in full year 'twenty three, but includes €7,000,000 from four months of consolidation of unbolt with subsidiaries. CapEx in Boulemappa prior to merger with Forecast Media is down by €10,000,000 for full year 2024 compared to full year 2023, following less need for new development. In 2024, 9% of revenue was invested to strengthen the market leading positions. We have an increased focus on return on investments and optimization of investment is €90,000,000 to €95,000,000 compared to $115,000,000 in 2024.

When adjusting for full year effect on Bolt and its subsidiaries. Free cash flow increased from €74,000,000 in 2023 to €86,000,000 in 2024. As illustrated on the left hand side of this slide, you can see that our free cash flow is impacted by seasonal fluctuations. First quarter as you know how entered, is historically always a strong quarter in terms of free cash cash flow, as CECL invoices a large part of its customers in advance on a yearly basis in January. Moving on to the illustration on the right hand side, you can see that we have generated SEK $219,000,000 of operational cash flow. In 2024. Investment cash flow amounts to €175,000,000 in 2024, and consists mainly of capitalized development cost and acquisition of shares in unbolt and Prosper I. Financing cash flow amounted to €55,000,000 and consists of proceeds from borrowings and repayment of borrowing, paid interest and payment for the principal element of leases. Spirit Group's cash balance at the December was $43,000,000 Our financial position as of December shows that assets to a large degree consist of intangible assets, where of €1,200,000,000 is goodwill and the remainder is capitalized development cost, customer contracts and trademarks.

Equity is close to €1,300,000,000 giving an equity ratio of 53%. Net interest bearing debt is $7.00 €8,000,000 at the December, and is up €57,000,000 from the end of twenty twenty three. This includes lease liabilities of 73,000,000 The increase in lease liabilities is related to some new office leases. Reducing interest bearing debt has been and still is a priority for us. In August 24, however, we increased debt to finance the strategic acquisition of the remaining shares in unbolt, to make it a fully owned company. We have two interest rate swaps at favorable terms of three point two four and three point two five, covering 60% of the interest bearing loans. The cash balance at the December was $43,000,000 In addition, Spurglup has a liquidity reserve of $50,000,000 Summing up the financial results, there are four key areas I would like to highlight. Firstly, double digit revenue growth in our real estate business area has accelerated total revenue growth. Secondly, the Public Administration business area continues to deliver its steady growth with increasing annual recurring revenue and high win rates. Thirdly, we have a continued focus on cost control across the group, and I'm pleased to see that the effects from cost initiatives have started to materialize and that profitability is increasing evidenced by the increase in cash EBITDA.

Lastly, I would like to highlight the add on acquisition of unbolt, that was successfully integrated during the quarter. We truly believe that the strategic acquisition will strengthen our real estate offering and make our number one positions even stronger.

There is a pressing demand for secure and efficient IT solution across both our business areas, and we have entered '25 with a positive outlook. Now Per Hogon will comment on the business development in the quarter.

Thank you, Cecile. It's great to see that in initiatives we have implemented during the past year really are providing improved results. Let's look at the main reasons behind our improved financials during the quarter. SPEAR Group is a software house with market leading positions within real estate and public amortization. As our companies deliver mission critical software and data to our customers. Based on our extensive real estate and geo information dataset, combined with our deep domain knowledge, we delivered software data and consulting services within five ks [indiscernible] Our ambition is to build Speed Group into a lighthouse for real estate software with our core real estate data geo information and deep domain knowledge. We will focus on high margin software and data within mission critical process The strategy is to expand our offerings to existing customers to increase the supplier power and share of wallet. Our products are available to all companies that need real estate solutions, but our primary focus will be on real estate agents, [indiscernible] [indiscernible] construction, appraisal, energy, telecom and forestry. Looking at the Real Estate business, the positive things signs over the past few quarters have continued during the fourth quarter. In the quarter, all Spir companies within this segment delivered double digit growth, driven by strong development in the transaction based real estate market in Norway and Sweden.

The number of properties put off for sale increased in Norway in Q4 positively. This affects Amita. The number of properties put out for sale in Norway has historically been very stable with about 100,000 Properties each year. After a slow start to the year, the numbers picked up again in the second half of the year. Providing tailwind for our companies. It is also great to see that the January numbers grew by as much as 27%. On Beta maintains a strong market position in an environment with high competition and rapid tech changes. And deliver strong revenue growth as Cecile already mentioned. Bulnapar continues to explore new revenue streams and partnerships to leverage scale. These efforts include development of the company's solutions, functionality, increased emphasis on market visibility and readiness for upcoming revenue models. The Swedish market is also improving with a higher number of properties sold positively affecting Metra, who grew revenues by 14% in the fourth For eBuddy, we saw a 40% increase in reports delivered year on year. And approximately 90,000 condition reports generated through the eWIDE system every year following our exciting acquisition from Q3. So let's have a brief look at the acquisition of Umbro from Q3.

What the company brings us and what we have done following the investment. Envold has built a Nordic ecosystem around property condition data. Providing unique insight analytics about building stock. By taking control of Enbalt, we strengthen our position within real estate transactions, complementing the group's property data offerings with unique property condition and energy data. Following the full acquisition of Enbalt in August 2024, we completed a one hundred day integration plan in December with focus on operations, people, synergies and data. The subsidiary, EVRD, which is a major player in Norway within software for real estate appraisal, was established as a separate segment. Penbold will be rebranded as Spiritata in Q1 twenty twenty five and serve as a horizontal entity within the group, delivering advanced data services. Utilizing the strength of the group to create a unified approach to the Nordic real estate market. The acquisition of Unbult is unlocking the new opportunities through advanced data services, business development acceleration and next generation data platform. Our public conversation offering is providing by SIGGRIF, supporting the public sector with insight, control and digitalization of law regulated processes. CQI are increasing sales to new customers in addition to up sales to existing customers.

Seq has long term contracts with low churn and a steady high win rate on public tenders. And in Q4, Sequin won 80% of its public tenders, gained market share and attracting new customers as also illustrated by the win of Nesolden in Norway and Karskruma in Sweden. Subsequent to the quarter, Secliv won the tender for Indigo IKS Maalerten and Stange. Developed the agreement for these for three years is MNOK 8.7, with several options for renewal and add on sales. It is also worth highlighting that Seeker grew iodine by 12% compared to a year ago, due to increased sales to new and existing customers. So let's wrap up this presentation with an update on our outlook. So entering 2025, our outlook remains very positive. The demand for secure and efficient IT solution is growing across our business areas as customers increasingly seek to reduce costs, streamlining and digitizing their operations. We expect our subscription based revenues to continue to grow steadily with low churn as they are primarily based on long term contracts. Meanwhile, there are positive developments in the real estate market both in Norway and Sweden, as we already touched upon. We plan to optimize investments to enhance margins and cash flow and prioritize RI with a projected capital investment range of MNOC 90,000,000 to 95,000,000 for 2025.

We are positive about the opportunities the implementation of open data in Sweden creates, within new data sources and product development Going forward, However, revenue in Metra will be negatively affected but large parts of data costs of our COGS within geodata will disappear and METRAS aim is to further improve the company's gross profit during 2025. Cost control remain as a focus and is now beginning to impact on the group's profits. We use generative AE solutions to optimize and streamline our operational way of work. Overall, we have solid building blocks in place and expect continued growth in our software business for 2025. With that, I'd like to thank you all for watching this presentation and wish you all a great day.