Carasent : Q2 2024

Q2 and H1 2024

Interim Report

1

Table

of contents

Overview

Highlights	3
Letter to our shareholders	5
Key Figures	7

Financial

Statements

Financial results	10
Consolidated statement of income	13
Consolidated statement of comprehensive income	14
Consolidated statement of financial position	15
Consolidated statement of cash flows	17
Consolidated statement of changes in equity	18

Notes

Note 1 - General information	19
Note 2	- Revenue Reporting	20
Note 3	- Other operating expenses	21
Note 4	- Employee investment matching program	21
Note 5	- Events after the balance sheet date	22
Alternative Performance Measures	23
Responsibility Statement	26

2

Q2 Highlights

Financials

Revenue

MNOK

Divestments

+5%

63.266.3

Q2 2023

Q2 2024

Revenue up 5% to NOK 66.3 million. The divestment of Confrere impacted year-over-year growth with NOK -2.3 million

Organic growth

10%	15%
Organic YoY revenue	Organic YoY recurring
growth of 10% in Q2,	revenue growth of 15%
with constant currency	in Q2, with constant
rates	currency rates

Margins

16%

9.2

Adjusted EBITDA of NOK

10.4 million and margin of 16% in Q2 2024

-2%

Adjusted EBITDA-Capex1 of NOK -1.4 million and margin of -2% in Q2 2024

1: See Alternative Performance Measures	3

Q2 and H1 Highlights

Key figures

	Q2	Q2	H1	H1
NOK million	2024	2023	2024	2023
Revenue	66.3	63.2	133.2	123.2
Revenue growth	5%	46%	8%	35%
Organic growth1	10%	17%	11%	16%
Organic recurring revenue growth1	15%	14%	15%	13%
Gross profit	56.5	52.1	112.7	100.3
Gross margin	85%	82%	85%	81%
Reported EBITDA	7.8	1.2	14.2	3.5
Non-recurring expenses	2.6	4.5	4.2	7.0
Adj. EBITDA2	10.4	5.6	18.4	10.5
Adj. EBITDA margin	16 %	9 %	14 %	9 %
Adj. EBIT2	-3.2	-4.7	-9.0	-11.3
Adj. EBIT margin	-5 %	-7 %	-7 %	-9 %
		-16.7
Capitalized development	-11.8	-24.7	-40.0
		-11.1
Adj. EBITDA - capex2	-1.4	-6.3	-29.4
Adj. EBITDA - capex margin	-2%	-18 %	-5%	-24%

Other highlights

Signed contract to supply Ad Curis to Frelsesarmeen bringing in NOK 3.3 million new ARR

Signed contract to supply Medrave M4 to VGR bringing in NOK 6 million new ARR

Rapidly growing ARR backlog of NOK 17 million compared to NOK 2 million Q2 2023

1: Constant currency excluding Confrere, which was sold in Q1 2024.	4
2: See Alternative Performance Measures

Letter

to our shareholders

We leave an eventful quarter behind where we have worked intensively on the acquisition in Germany, the relisting process, and the take-over interest from EG. It has been very satisfying to see how the new organization operates and that despite these large projects, we are delivering according to the plan. The organic growth in recurring revenue is at 15% and the adjusted EBITDA margin has climbed to 16% in Q2. EBITDAC is now close to zero including costs incurred for our major development project for Germany, Webdoc X. Furthermore, we have won two large deals, one for Medrave and one for Ad Curis, bringing signed but not yet implemented ARR to NOK 17 million, compared to NOK 2 million a year ago.

The newly won but not yet implemented contracts provide a solid foundation for the autumn and especially for next year. This also gives us a strong base to drive profitability, as almost all products will see strong growth. By controlling costs, we can ensure rapidly increasing margins in line with our updated goals. Metodika, Medrave, and Ad Curis now have contracts that secure strong growth. Webdoc continued to grow well in Q2, and HPI has achieved a solid growth of 25% in the quarter. For our smallest product Ad Opus, we are currently launching Ad Opus Web and the first 5 customers have migrated to the new solution, we believe that this will allow us to drive growth also for this product. In the coming 12 months, it is important that we make good progress in Germany and the next step is to complete an acquisition to establish a foothold to launch our Webdoc X product.

In Västra Götaland, the collaborative organization for all health centers (vårdcentraler) has now written an official letter to the regional director, stating, among other things, that they absolutely do not want to be forced into Millennium and that such a mandate is considered illegal. We have taken an active role in informing all current and potential customers in the region about what Millennium would entail and their rights. However, it is unlikely that this issue will be resolved in the near future.

The major one-off projects; acquisition in Germany, relisting, and the interest from EG, drove substantial costs in the quarter, totaling NOK 2.6 million. We have adjusted for these in the adjusted figures and anticipate more such costs in the coming quarters. The work on the relisting to the Stockholm Stock Exchange is progressing well, and we see that it will be a relatively simple process given that we are already listed on a regulated market with similar requirements. The acquisition process in Germany is also proceeding well, and while we are in a really good position, we are thoroughly and critically evaluating each step.

5

As we head into autumn, we are positioned well with good growth across almost all products and good cost control. We are looking forward to our launch of surgical functionality in Webdoc and have many other exciting features in the pipeline. It is clear that we can do a lot to help our customers gain efficiency and quality. Our small part of our customers' costs has a disproportionately large impact on their operations.

Daniel Öhman

CEO

6

Key Figures

Growth Metrics

Organic recurring revenue growth of 15% in Q2

We grew total revenues to NOK 66.3 (63.2) million in Q2 2024, up 5% from Q2 last year. Organic growth year-over-year (YoY) amounted to 10% (17%)2 in Q2 2024. Organic growth was driven by recurring revenue growth. Organic growth excludes Confrere, which was sold in Q1 2024.

The organic recurring revenue growth was 15%, which is higher than Q2 last year. The growth composed of net retention rates2 at 111% and growth from new customers of 5%. Growing our recurring revenue base from existing and new customers is a key strategic focus.

Currency differences affected revenues negatively in the quarter with NOK (0.8) million compared to Q2 2023. The average SEK/NOK currency exchange rate was 1.01 in H1 2024 vs. 0.99 in H1 2023. In H1, our total revenue growth was 8%, and the organic growth was 11%.

Webdoc grew 17% YoY to NOK 33.3 million (18% excluding fx effects) in Q2 driven by strong upsell and also growth from new customers. Revenues from our other EHRs increased 7% YoY to NOK 15.0 million (9% excluding fx effects). Other EHR includes recurring revenues from Metodika, Ad Curis and Ad Opus. Platform products decreased 5% to NOK 12.9 million. The decline was related to the divestment of Confrere, which had a net negative effect of NOK 2.3 million. Platform products grew 14% excluding Confrere and fx effects. Platform products includes recurring revenues from HPI, Medrave and Confrere.

Consulting and other revenues decreased 29% to NOK 5.1 million in Q2 2024. Consulting and other revenues declined as we saw very high activity H1 2023, and our focus is on generating long term recurring revenues.

	Q2	Q2	H1	H1
NOK million	2024	2023	2024	2023
Webdoc	33.3	28.5	66.8	55.3
Other EHR	15.0	13.9	29.6	27.4
Platform Products	12.9	13.6	26.3	27.2
Consulting & Other	5.1	7.2	10.4	13.3
Total revenue	66.3	63.2	133.2	123.2

1: See Alternative Performance Measures	7
2: With constant currency rates

Annual Recurring Revenue (ARR) growth of 7%

Annual Recurring Revenues (ARR) grew to NOK 236 (221) million in Q2 2024, corresponding to a growth of 7% compared to the same quarter last year. The growth is diluted by currency effects and the divestment of Confrere.

				Quarterly ARR1 (MNOK)
					219	221	222	239	246	236
				202
			185
	168	169
142	142

Q3 2021Q4 2021Q1 2022Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024

Profitability and investments

Adjusted EBITDA margin of 16%

Reported EBITDA amounted to NOK 7.8 (1.2) million in Q2, where margins increased from 2% to 12%. EBITDA is negatively affected by NOK 2.6 million one-off transaction costs, where NOK 1.5 million is related to the potential takeover process, NOK 0.5 million related to the potential relisting process and NOK 0.5 million is related to M&A in Germany.

Adjusted for the one-off costs, EBITDA amounted to NOK 10.4 (5.6) million in Q2, where margins increased from 9% to 16% for the group from the same quarter last year. Margins are scaling rapidly driven by a stable cost base and increasing revenues. We are continuing to invest into future growth and our operations are in most areas scaled to manage larger volumes.

Ending Q2, the number of employees in the Group was 165, a net decrease of 1 employee compared to Q2 2023. 100 employees are working in Research & Development (R&D), 15 in Sales and Marketing (S&M), 11 in General & Administrative (G&A) and 39 in Operations. Carasent also uses external consultants for individual projects.

Capitalized development

The investments in tangible and intangible assets amounted to NOK 12.0 million during Q2 2024. Investments in tangible assets totaled NOK 0.2 million during Q2. Capitalized development totaled NOK 11.8 (16.7) million decreasing 29% compared to Q2 2023 as a result of the cost savings program completed in Q2 2023.

1: With constant currency rates	8
2: See Alternative Performance Measures.

NOK million

Existing markets

New initiatives

Total capitalized development

Q2	Q2	H1	H1
2024	2023	2024	2023
7.4	7.7	15.2	16.3
4.4	9.1	9.6	23.5
11.8	16.7	24.7	39.8

Capitalized development of NOK 7.4 (7.7) million was related to expansion of our existing markets. This included development of existing and upcoming products in our existing markets.

New Initiatives only includes the development of Webdoc X. In 2023, it also included Webdoc Norway when the project was still active in H1. Capitalized development costs related to new initiatives totaled NOK 4.4 (9.1) million in Q2 2024.

9

Financial Results

Financial Results - H1 and Q2 2024

Net revenue

Revenue of NOK 66.3 million in Q2 2024, an increase of 5% as compared to NOK 63.2 million in Q2 2023. Revenue growth was driven by an organic growth of 10% (constant currency). The divestment of Confrere had a net negative impact of NOK 2.3 million compared to the same quarter last year.

Revenue of NOK 133.2 million in H1 2024, an increase of 8% as compared to NOK 123.2 million in H1 2023.

Gross profit

Gross profit of NOK 56.5 million in Q2 2024, increasing YoY by NOK 4.3 million or 8.3%. The increase in gross profit is attributed by the revenue growth within the quarter and reduction of hosting costs in Norway as a result of a procurement process. Gross margin increased 2.8 percentage points to 85.2% in Q2 2024 compared to 82.4% in Q2 2023. The increase in margins is also partly driven by the divestment of Confrere.

Gross profit of NOK 112.7 million in H1, an increase of 12.4% as compared to NOK 100.3 million in H1 2023.

Operating expenses

Personnel expenses totaled NOK 33.2 million in Q2 2024, a decrease of 13.4% compared to the same quarter last year. The decrease was driven by cost savings implemented during the last twelve months and one-off restructuring costs from the cost savings program completed in Q2 2023. Shift of focus from the development team to prioritize backlog and minor developments, lead to a lower degree of capitalized development costs compared to the same period last year. Capitalized development costs decreased by NOK 4.9 million the same period. Personnel expenses totaled NOK 69.6 million in H1, a small increase as compared to NOK 69.5 million in H1 2023.

Other operational and administrative expenses totaled NOK 15.4 million in Q2 2024, an increase of 22.0% compared to NOK 12.7 the same quarter last year. The increase was driven by NOK 2.6 million one-off transaction costs.

Personnel expenses and other operational expenses totaled NOK 69.6 million and NOK 28.9 million, respectively, in H1 2024.

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