Data Respons delivers record high quarterly results
Data Respons presented figures for Q3 showing both solid revenue growth and a good margin increase. The company reports 35% growth in operating income and 68% growth in the operating profit, reaching an EBITA margin of 12.1% in the third quarter.
– So far 2019 has been a very good year for us, but this quarter has really hit the mark with 35% growth, says Kenneth Ragnvaldsen, CEO of Data Respons
The strong performance is a mix of successful acquisitions and strong organic growth. In July, the German company Donat Group and the Swedish company inContext became part of the Data Respons group. In addition, the company can point to 11% organic growth for the group.
– Our long-term strategy, where we have cultivated the specialist role, combined with a strong digitalisation trend, has yielded very good returns this quarter, Ragnvaldsen continues.
Growing number of specialists
It was not only financially that Data Respons experienced growth. In Q3 the company headcount grew by 270 engineers and developers across the group. However, the demand for more people is still high and several of the subsidiaries would like to recruit a developer every week in order to meet the increasing demand in the market. The company now counts 1 386 specialists in offices in Norway, Sweden, Denmark, Germany and Taiwan.
– Our employees represent the core value of the company, and as the number of specialists increases, so does the opportunity for the entire company to grow and take on larger exiting projects. We have gone from being a small Norwegian tech company to becoming an international technology group with 35 nationalities and many very smart and talented people, says Ragnvaldsen.
Growth driven by global megatrends
Data Respons’ revenue has grown by 28% this year, and much of that growth is credited to being strategically positioned in the response to big technology drivers according to Ragnvaldsen.
– We have become a business-critical supplier to many large European companies that are in the early beginning of extensive digital evolutions. In Germany, we are part of the development of tomorrow’s banking industry and mobility segment. In Sweden, we have large teams working on the roll out of 5G and IoT-technologies, and in Denmark and Norway we are creating digital platforms to the energy and MedTech sector, just to name a few, comments Ragnvaldsen.
McKinsey, PWC and Deloitte have all produced reports this year that point to how the supplier value is shifting from hardware to software within mobility. Specifically, its autonomous platforms, connected vehicles, electrification and shared user platforms that are behind the shift towards software.
– Mobility is just one example of what the massive effects digitalization can have in a single sector. We have already seen how electric cars, connected concepts and new car sharing services create many opportunities for a business like ours.
– In addition, we have good speed into the fourth quarter with a strong order intake, and across the group we are involved in long term projects that will continue to fuel our growth. We are still determined to continue the development of the company through a combination of organic development and selective bolt-on acquisitions, concludes Ragnvaldsen.
- Revenue in the third quarter was NOK 460.0 million (341.8), a growth of 35%.
- EBITA was NOK 55.6 million (33.2), a growth of 68%.
- The underlying EBITA in the third quarter, adjusted for expensed transaction cost of NOK 5.9 million related to the acquisition of DONAT Group GmbH and InContext AB, was NOK 61.5 million.
- EBIT was NOK 47.7 million (29.8), a growth of 60%.
- The profit for the period was NOK 29.9 million (18.9). EPS was 0.38 (0.32).
- Data Respons had a net operating cash flow of NOK 63.4 million (3.1) in the third quarter.
Year to date
- Revenue for the first nine months was NOK 1 344.9 million (1 051.3), a growth of 28%.
- EBITA was NOK 151.5 million (95.0), resulting in an EBITA margin of 11.3% (9.0%).
- Data Respons had a cash flow from operating activities of NOK 129.5 million (9.2).
- The total number of employees on 30 September 2019 was 1 006 (644), and including subcontractors, the company had 1 385 (961) employees.