Embedded | October 17, 2019

Data Respons reports on record high quarterly results

Data Respons presented figures for Q3 showing both solid revenue growth and a good margin increase. The company reports 35 percent growth in operating income and 68 percent growth in the operating profit, reaching an EBITA margin of 12.1 percent 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 percent 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 percent 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 percent 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. - 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. Q3 facts - Quarterly

Revenue in the third quarter was NOK 460.0 million (341.8), a growth of 35 percent.
EBITA was NOK 55.6 million (33.2), a growth of 68 percent.
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 percent.
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.

EUR 1 = NOK 10.1 (2019-10-17)