OSLO: Mercell Holding (Mercell) delivered year-on-year revenue growth of 110% to NOK 68.4 million in the second quarter and 110% to NOK 125.4 million for the first half year 2020. Organic revenue growth was 34% in the second quarter.
Annual Recurring Revenue (ARR) increased by 123% year-on-year to NOK 299 million at the end of June, with acquisitions adding to the 34% organic ARR growth.
“We continue to see good organic growth both through new sales and upselling to existing customers. At the same time, we are expanding through acquisitions, and look forward to continuing our growth journey in the second half of the year,” says CEO Terje Wibe in Mercell.
EBITDA increased to NOK 12.5 million in the second quarter (3.1) and to NOK 15.1 million in the first half year 2020 (5.5). Adjusted EBITDA – excluding special cost items – increased to NOK 18.8 million in the second quarter (6.0) and NOK 25.1 million for the first half year (8.5). Adjusted EBITDA-margin was 25% in the second quarter and 19% for the first half year.
Depreciation and amortization amounted to NOK 28.8 million in the second quarter (6.8) and NOK 52.3 in the first half (11.3). The significant increase reflects amortization of intangible assets related to acquired companies over the past year. In accordance with the accounting standard NGAAP, intangible assets from acquisitions are amortized over a period of five years.
Mercell is the leading platform for public e-tendering in the Nordic market and was listed on Oslo Børs Merkur Markets 9 July. Building on a strong position among public buyers and suppliers in the ‘pre-award’ market, the company entered the ‘post-award’ market in the first half 2020 through the acquisitions of Aksess Innkjøp in Norway and Truelink and Tricom in Denmark. In September the company further strengthened its position in the ‘post-award’ market through the acquisition of Comcare in Denmark.
“Mercell is already a leading platform for public e-tendering in Northern Europe, and our strong entry into the post-award segment shows our ambitions in the broader procurement market. We aim to become the leading market consolidator in the European public procurement market and are happy to have attracted a broader shareholder base and a solid set of cornerstone investors that support our growth ambitions,” says Wibe.
Mercell’s ambition is to grow ARR to 650 million in 2025, with acquisitions adding further upside potential. The company reiterates its ambition to strengthen the profitability from an adjusted EBITDA-margin of 20% in 2020 to 40% by 2025, through economies of scale, product development and improved efficiency.
Mercell is the leading digital platform for public eTendering in the Nordics and has recently entered the eProcurement market. The company has approximately 1,000 pre-award buyers, 250 post-award buyers and close to 16,000 suppliers as customers. Mercell’s unique marketplace simplifies the tender and procurement process and makes it safe and easy for buyers to find relevant suppliers for their tenders and daily purchasing needs.
Mercell also ensures suppliers find relevant business opportunities as well as tools for the suppliers to digitally receive and handle purchases from public and private buyers. Mercell delivers services to public and private buyers in 13 European countries and our aim is to become the leading software-as-a-service (SaaS)-platform for eTendering and eProcurement in Europe.