CodeLab Capital AS (CODE) Earnings Call Transcript & Summary

Good morning, and welcome to CodeLab Capital Q2 2026 presentation. My name is Anton Bondesen, and I'm the CEO of CodeLab Capital. And with me today, I have our CFO, Christoffer Mathiesen, who will dive into the numbers a bit later. We [indiscernible] recording of today's meeting. And it will be shared after [indiscernible] it can be downloaded, et cetera. I just want to say that we will do a Q&A session after today's presentation. [Operator Instructions] Today, we'll cover these core highlights the status of our portfolio companies, our M&A pipeline and close off with our investment. So let's get disclaimer, please read it. Yes, Q2 was a very strong quarter. We now have an ARR of NOK 52 million up 53% and an ARR visibility of almost NOK 70 million. End of June, we had almost NOK 14 million cash at hand, 3 things to find the quarter. We first [indiscernible] transaction, of course, strengthens our occupational health vertical and tons of cross-selling opportunities for Kuba. And [indiscernible] in estimated revenue between NOK 20 million and NOK 25 million. Second, we executed a private placement and the data settlement of shares in the transaction. At NOK 4 and NOK 4.4 in share -- settlement shares. So both issued and above market price. So very satisfied with that transaction and, of course, getting the whole Agil company into the structure. Generally speaking, very strong financial performance and most importantly, I'm very proud of it, according to plan, the plan which we set out 1.5 year ago when we started the revitalization of CodeLab we actually managed to deliver on the plans, which we set out to do. Both Claudia and Kuba with growth and profitability expansion, and we really look forward to show you the numbers later. We keep signing contracts and [ moving ] into recurring revenue. So again, tracking to plan very, very good quarter. Yes. Thank you. So CodeLab Capital [indiscernible] at the plans for new investment people have known us from before. What are we? We are a listed investment company with a clear and disciplined strategy. We pursue opportunistic M&A deals through both greenfield initiatives and [ on ]. And we try to deploy our infrastructure capital has the team in CodeLab the listed company across the portfolio companies. Today, we have more than 3,500 customers, 1,500 added in the recent quarter to the Agil acquisition. And we operate across services, SaaS and reseller business models. And as I mentioned, we now have AR of NOK 52 million. [indiscernible] of the company is owned by employees. It secures great alignment with all shareholders and this is what we do. We try to deliver value creation on a day-to-day basis. And a very strong alignment in the management with all the other ones. So -- but yes, let's look at what we have today. Today, we have 4 companies. We have Kuba which we own 100%. We have [indiscernible], 100%. Cloudya on majority, 50.1%, UniScale, 100% as well. Kuba delivers health, safety and environment software for a range of customers, almost 1,500 and occupational health services well. And then our recent add-on Agil, which is a pure occupational health play. That's a very great fit to the rolling -- Yes, people keep joining and it pings here. And then Cloudya, the AWS reseller with fast growth and clear profit expansion since we acquired them. And they are performing very, very well. Very satisfied with the development in Cloudya and Kuba and still getting to know Agil, but we've come off to a good start with the management and the billing organization. I'm very pleased with the seeing everybody is being motivated joining the whole new ownership structure. And as you can see, Christoffer and I are offsite. We're sitting at meeting facility here in downtown Oslo, and we have a workshop later today with all the teams. And then last but not least, we have UniScale, which we own 100% of, which holds some IP rights to B2B software tool and a large tax carryforward out, no operations currently. But that's what we own today. We are even more excited to talk about what's ahead. So let's look at our pipeline for a few months. The next 12 months will fundamentally shape future for CodeLab and our business units. We're right now in dialogue with 9 different targets that combines have more than NOK 350 million in revenue. And [indiscernible] across 3 parallel tracks building out occupational health business with add-on acquisitions to Kuba and Agil, expanding our software offering with products to Kuba's customer base and establishing last vertical, which is eHealth. As some of you might know, eHealth is a very big thing for us. That's how CodeLab Capital was originally listed with PatientSky, which was later sold and that in a space where I have been working for most of my adult life and we are really eager to continue to see if we can get a presence in that market once again. So right now, we are in due diligence with the Scandinavian target who operates out of Norway. We announced the term sheet before the sum holidays. And yes, things are progressing. And by acquiring or getting a good position within eHealth, we now like fulfill the verticals, which we set out to do, having operational health software and adding the ease of solution, we can become our own best customer in primary care because so many of the professionals, which are working on the occupation health side of things, they can use the potential [ add-ons ] we are acquiring now. And then we can build a really, really strong service offering, improving the whole operational model of occupational health in Norway. So super excited about it and then, of course, potential add-ons to Kuba and operational health. So yes, I think that's it. Super excited. More news will come soon. And yes, I think, Christoffer, you can jump to the next one. So why did we do Agil [indiscernible] transaction? Why does it make sense? Kuba started out being a software company and then expanded into occupational health by doing a small acquisition before our ownership some years ago. And the bottleneck, we really like expanding and increasing the quality of the delivery there is adding the right people. And was just a perfect match. They didn't have a software solution today, and they needed that, and we needed the right people to really get the growth going within that space. And -- that was the rationale. And now we have people working both with software and expanding the whole service side of things. And we really see a great cross-sell potential already Kuba addressing Agil customers and Agil doing the upsell to current Kuba customers. So yes. Christoffer?, The next slide, the team. I mentioned already, it's me, it's Christoffer, our CFO, [ Les Tatiane ] on accounting. And then we have [indiscernible], who joined us from August 1. He's been working with us for quite some time already as a third-party contractor to Kuba helping scale that organization sale and professionalizing a great partner [indiscernible] -- we're very satisfied with [indiscernible] joining us now and really putting feet on our [ conciliation ]. And that's us, and I will let Christoffer show you the numbers enough talking from me.

Thank you, Anton. I'll be happy to go through the numbers. Really pleased with the with posting NOK 17.7 million in revenues for the quarter. Bear in mind that the financial report contains the actual reported numbers while this presentation is more focused on the pro forma and pro rata development. So meaning that as if we had owned both Agil and all the other companies throughout the higher period that we're looking at. And that way, you can compare apples-to-apples. So basically, all our companies that we own now grew their revenue from NOK 13.3 million to NOK 7.7 million. year-over-year, and we also posted a loss of NOK 1 million in cash EBITDA which we are rather pleased with given that we spent almost NOK 2 million on initiatives being digital marketing and sellers in the quarter. Please note that there are 2 rather noticeable seasonality effects in the occupational health segment. You have normally a very good and strong fourth quarter. You can see that clearly in the graph for 2025. We also expect that to be the picture for this year. The other seasonality effect is on the cost side, where you have a second quarter with lower costs in your P&L than you have in the other quarters given that you pay out holiday pay. So you miss 1 month of salary expense in your P&L. If we dig more into the revenue side of things, we are really pleased to see that it's the recurring revenues that are the driving force behind the positive development, which increased with 74% year-over-year and also constitutes 74% of top revenues. So with the base we have now and what we have already signed. And without further growth and what we see in the pipeline, we already see that we have close to NOK 70 million in recurring revenues of a visibility base, which gives us great comfort and visibility going into the next period. A small comment to the fourth quarter 2025. I mentioned this is now the effect on the previous slide. You can clearly see here that it's the sure element within the occupational health, but is driving the uptick in revenues. Yes. If we focus more on the cost side, the total operating expenditures and personnel expenses for the quarter ended at [indiscernible]. And we are doing what we said we would do. We would invest in the right things. So we increased the costs in growth initiatives with over 100% year-over-year. And what we also are quite focused on is cost control on the other elements and pleased to see that the other costs are down year-over-year, and CodeLab costs are in line with the second quarter for 2025. And we expect that the team will set now and the cost base that we have established is scalable going forward. If we focus more on the company-specific numbers, let's start with Kuba, which had a great quarter. Kuba is continuing to grow based on the strong assessment that they've had historically. So basically increasing the top line to NOK 4.3 million with recurring revenues growing over 30%, year-over-year. The new sales volume or actually value is 2.9x higher than the comparable period last year. And probably the graph and the development, which I'm most satisfied with is the cash EBITDA development, which is NOK 1.2 million and NOK 2.3 million before growth costs and even taking into account around, let's say, NOK 700,000 in salary costs that are missing from these numbers. Kuba has reached our milestone being self-funded at least proven for the second quarter with a great cash flow production. [indiscernible] it's the Same story all over again. The growth is really, really strong, going from [indiscernible] for the first half in 2026. Have a great momentum and has started to onboarding also international customers, and I would say also more complex enterprise kind of customers on longer contracts. So really pleased with the development and the pipeline looks extremely strong. And Cloudya loan has secured over NOK 15 million in recurring revenues. And I would expect that number to increase quite dramatically in the second half of this year. Furthermore, which is a win-win situation for the company and for us, obviously, is that even though you're growing almost exponentially, you also get improved margins from AWS, tweaking their partner strategy. But also in the fact that Cloudya is delivering better, better and more high-quality services, taking on projects and also adding competence to their team and stakeholders around the company. Which translates into higher margins and higher profitability. So obviously, looking forward also to the next quarter presentation where we plan to show you more actual numbers on Agil as well, even though we're only on that for a month now. But I'll let Anton to wrap things up before we go to Q&A.

Yes. Thank you, Christoffer. As you're going to tell, we are executing. We are doing our utmost best to deliver on what we said we would wanted to do. And I think we are proving that we are able to deliver on our targets. And I'm a really glad CEO of CodeLab and a happy owner of our portfolio companies. I'm really pleased to see how of the people working in the business are aligned. Shares the same interest and we get very valuable feedback in making the right decisions when we look to the future and doing add-ons and discussing getting some great insights into both the industry, especially occupational health, where we learn a lot and get inputs on how to position for making a profitable journey into that space. So yes, as you can tell, the pipeline is active. The platform is taking shape and we look forward to update you again next quarter, and we're still working on improving our investment relations side of things. But right now, we are keeping the cash we have in the company. We spend to grow and want to make profits for our share roles first, and then we can invest even more into operations later. So that's all. As you know, you are always welcome to reach out to me or directly either through may, phone or whatnot. This is what we do. And I think we can start with the Q&A session now. Any questions? People have a hard time finding the bottom. Look at the bottom down right, it should be able to see if there -- Christoffer, I don't see any questions. Maybe we gave such a good presentation that we answered everything. But please do ask if you have any?

And just a comment, but we are obviously also available after this call if anyone wants to reach out. So...

Absolutely. And please do follow CodeLab closely the next few weeks because things is about happening and the targets we're looking at are very, very interesting. Cool. Thank you so much, everyone. Thank you for joining in. Enjoy the rest of your day.