Finland · Delayed Price · Currency is EUR Admicom Oyj Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw 5% ARR growth and a 28% adjusted EBITDA margin despite a tough Finnish construction market, with profitability up and new sales strong but churn elevated due to bankruptcies. Strategic acceleration includes a share buyback, change negotiations, and a focus on AI and international growth.
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AI-driven disruption is reshaping SaaS, but deep vertical integration, proprietary data, and compliance focus provide resilience. Investments in AI enhance operational efficiency and customer value, while a value-based, project-centric business model and ecosystem approach create strong market moats.
Fiscal Year 2025
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Q4 and 2025 saw mixed sales but strong profitability, with ARR growth at 6% and adjusted EBITDA at 32.5%. The company completed its investment phase, launched its first AI product, and set 2026 guidance for 6%-12% ARR growth, while market recovery and billing model changes pose short-term challenges.
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A new three-year strategy aims to return to over 15% organic growth and exceed €60 million ARR by 2028, driven by a unified, AI-enabled platform, international expansion, and targeted M&A. Profitability, operational leverage, and customer-centricity are central, with a focus on scalable growth and value-accretive acquisitions.
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Q3 saw 7.8% ARR growth and strong cash flow, but a profit warning was issued as market recovery lags and churn remains elevated. Guidance for 2025 was lowered, with focus shifting to profitability, operational efficiency, and international expansion.
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Strategy execution is on track despite a stagnant construction market, with diversified clients showing resilience. Price hikes and a new billing model are being rolled out, while sales and product strategies are being refined. Competitive pressure remains high, but management is focused on value and operational efficiency.
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Q2 saw strong new customer growth and AI-driven product expansion, but revenue and profitability were impacted by a weak construction market and a shift in billing models. The new rolling revenue-based billing model is expected to boost revenue from Q4, while churn and competition remain key risks.
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Price increases and a shift to real-time, revenue-based pricing are planned for later this year. Organizational changes have improved sales coverage and product focus, while AI pilots and internationalization efforts are progressing. The construction market remains flat, with recovery expected later in the year.
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Q1 2025 saw strong sales and strategic progress amid a tough construction market, with high insolvency-driven churn offsetting new customer gains. ARR grew 5.5% year-over-year but was flat sequentially, and adjusted EBITDA margin was 25.3%. Guidance anticipates market recovery and accelerated growth in H2.
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The meeting highlighted strong recurring revenue growth and robust financials despite sector challenges. Strategic focus is on accelerated growth, international expansion, AI-driven development, and portfolio integration, with leadership and governance updates supporting these goals.
Fiscal Year 2024
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2024 saw strategic transformation, international expansion, and resilient financials despite a tough Finnish construction market. Guidance for 2025 anticipates ARR growth of 8%-14% and EBITDA margin of 31%-36%, with continued focus on product integration and internationalization.
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The acquisition of Bauhub for EUR 6 million aims to unify and expand the project management suite, accelerate internationalization, and enhance cross-selling opportunities. Integration will begin in early 2025, with a focus on the Nordics and Baltics, and is expected to support long-term growth and innovation.
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Q3 saw modest ARR and revenue growth despite ongoing construction sector challenges and high client insolvencies. Profitability remained strong, with strategic investments in product development, AI, and international expansion. Guidance is unchanged, with cautious optimism for improved growth in Q4.
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Q2 saw 6.7% ARR growth and a 38.4% EBITDA margin despite market headwinds and lower adjustment fees. Strong cross-sell, robust cash flow, and a major international deal support confidence in 2024 guidance, with gradual price increases and continued cost control.