AROBS doubles its revenue and turnover in Q1 2023

AROBS doubles its revenue and turnover in Q1 2023

AROBS Transilvania Software (BVB: AROBS), the largest technology company listed on the Bucharest Stock Exchange, posts consolidated operating revenue of 133.2 million RON in the first quarter of 2023, a 113% increase compared to the same period last year, a turnover of 131.3 million RON, a 113% appreciation, normalized EBITDA of 25.5 million RON, an 18% increase, and a normalized net result of 19.3 million RON, +13%.

“The revenues recorded in the first three months of 2023 exceed the consolidated revenue and expense budget for this period by 25%, and the normalized net result exceeds it by 13%. The first quarter set the tone for a potentially very successful 2023. We recorded a 113% increase in consolidated turnover compared to Q1 2022. The increase is based on several sources, one of them being the 35% organic growth of the main company in the Group – AROBS Transilvania Software – which continues to perform extremely well, both in the software services field and at the product level. The Integrated Systems specialization brought a significant increase within AROBS Systems. This business represents the segment responsible for implementing hardware and software services and software products for contracting authorities in the public sector. Our colleagues contributed 27 million RON to the turnover related to Q1 2023.

Overall, we had a very dynamic beginning of the year regarding M&A transactions, an essential pillar in our development strategy. The acquisitions allow us to diversify our portfolio of services and products and increase our group’s competitiveness in technology nationally and globally. The companies added to the Group in the first three months of the year, CDS GPS, SYDERAL Polska, and the entities from the Republic of Moldova, AROBS Software and TrackGPS, represent an essential source of growth in Q1 2023 and contribute to the increase of the geographical footprint of the business and the diversification of our services and products”, stated Voicu Oprean, founder and CEO of AROBS. 

AROBS’s financial results for the first quarter of 2023 include the financial performance of SYDERAL Polska as of February 2023. The Polish company was acquired at the end of January this year. In addition, as of February 2023, the results of the two entities from the Republic of Moldova, AROBS Software and TrackGPS, are also included in the consolidation by AROBS, their acquisition being completed by AROBS at the beginning of the same month.

Regarding consolidated revenue, in the first three months of 2023, software services contributed 66%, integrated systems 21%, and software products 13%. Integrated systems represent one of the new directions of diversification in the group. AROBS Systems is responsible for implementing hardware and software solutions for contracting authorities in the public sector. This company has a team of professionals in the field of digitalization of the public sector, and technical expertise covers the integration of complex systems and technologies of ORACLE, HP, DELL, and Microsoft. In the first quarter of 2023, AROBS Systems completed a project to acquire hardware and software solutions to consolidate the databases necessary for the operation of the Customs Integrated Information System components, thus generating 21% of the turnover of the AROBS Group.

In 2023, AROBS targets a turnover of 421.3 million RON, a 40% increase compared to 2022, EBITDA of 74.2 million RON, +12%, and a net profit of 45.2 million RON, a 5% appreciation compared to 2022. The results recorded in the first three months of 2023 exceed the company’s estimated budget for this period. Thus, the recorded turnover is 25% above the company’s estimates for the year’s first quarter, the normalized EBITDA +20% and the normalized net result of 19.3 million RON is 11% above the estimated normalized net result. Normalized EBITDA and net result exclude the non-cash effect generated by the Stock Option Plan (SOP) programs that AROBS implements at the level of the companies within the group and the amortization of goodwill generated from M&A activity. 

“Since the publication of 2022 results, we have decided to present both normalized EBITDA and normalized net result because these offer to all stakeholders, from employees to investors, a more precise perspective on the performance and operational efficiency at the group level, excluding fluctuations determined by the SOP programs implemented by AROBS at the level of all companies and the amortization of goodwill”, stated Bogdan Ciungradi, CFO of AROBS Group.

“The SOP program is in its third version in AROBS and has been extended to other companies in the Group. Although such programs may generate short-term variations in financial results, they represent a strong commitment to our long-term development by motivating and retaining our colleagues“, added Voicu Oprean.

The management of AROBS estimates that globally the demands for services and software products will continue to be on an upward trend as companies and organizations continue to need the digitalization of their processes. The software development industry constantly requires access to excellent resources for companies to perform in a competitive market. The company also believes that in software products, such as fleet management, business optimization, digital payments, HR solutions, the implementation of digitalization projects in the public sector, the market will continue to grow amid the challenges and the economic and social context of last years.

AROBS Transilvania Software is listed on the AeRO market of the Bucharest Stock Exchange as of December 2021. The company currently has a market capitalization of approximately 901 million RON.

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