Crayon continues growth with 27 per cent gross profits uptake in Q4
Cash flow from operations was NOK 2.1bn (£160m) and adjusted EBITDA ended at NOK 241m (£18.13m)
Crayon has reported its fourth-quarter results with a gross profit growth of 27 per cent and cash flow from operations of NOK 2.1bn (£160m).
Adjusted EBITDA ended at NOK 241m (£18.13m), corresponding to a margin of 15 per cent.
"As reflected in our gross profit performance, we continue to see strong demand for software and cloud," said Crayon CEO Melissa Mulholland.
"We remain committed to continued efficiency measures to increase profitability and net working capital.
"With the increase in cloud spend and demand for AI, we are uniquely positioned to capture market demand."
Gross profit growth remains solid driven by continuous strong performance in both the Nordics and Europe.
First half of 2023
The licensing MSP had already reported gross profits growth of 23 per cent in its second quarter results in 2023.
The company delivered over NOK1.5bn (£110m) in gross profit.
Software and cloud were the fastest growing business at 30 per cent growth, while its consulting, software and cloud economics businesses followed on at 29 and 28 per cent.
Europe continued to be the biggest growing market for Crayon in Q2 at 50 per cent gross profit growth, followed by the US at 31 per cent.
While in Q1 Crayon reported a gross profit growth of 31 per cent, driven by a high demand for software and cloud services.
Adjusted EBITDA increased 50 per cent to NOK 185m (£13.5m) reflecting a margin of 14.7 per cent, an improvement of 1.9 bps compared to the year before.
Operating profit increased to NOK 55m (£4m) from NOK 47m (£3.4m) in the same quarter the previous year.
2024 priorities
Crayon will be focusing on two things in 2024, services for customer cost control and its AI momentum, UK general manager Hayley Mooney told CRN recently.
"Overall as the Crayon business, which is a global business, we're going to continue to capitalise on our market opportunity," she said.
"We optimise for our customers, and we innovate for our customers. And those two things are absolutely the highest priority.
"From a cost optimisation point of view, our services are built on a foundation of software asset management. We've evolved that right through to those cloud services delivering FinOps to our customers today, and we see huge market demand for that.
"Customer engagement is around saving money and getting control and visibility of that cost. That's the key big area we see."