Mercell Q1 2022: Continued ARR growth and improved margins and cash flow

First quarter 2022 highlights: 
o	Continued ARR growth to NOK 817 million, +29% year-on-year 
o	Organic ARR growth of +17.5% last twelve months and +4% in Q1, in line with
the target level of 15-20% annual growth
o	Q1 revenue +36% to NOK 202 million 
o	Reported EBITDA of NOK 51.6 million with EBITDA-margin of 26% 
o	Adjusted EBITDA of NOK 57.5 million with adjusted EBITDA margin of 29% 
o	Focus remains on enabling continued strong and profitable growth in the
existing businesses 
o	Cost efficiencies set to reduce IT spend by ~24% to NOK 170 - 185 million in
2022
o	Expecting improved EBITDA-margins from 2021 to 2022, and solid free cash flow
after investments and interest payments from 2022 onwards

Oslo, May 25, 2022: Mercell Holding ASA (Mercell) reports 29% growth in Annual
Recurring Revenue (ARR) to NOK 817 million at the end of Q1 2022, with organic
growth of 17.5%. This is in line with the company's growth target of 15-20%
annual growth for the existing business. 
Revenue increased by 36% year-on-year to NOK 202 million in the first quarter
(148). Reported EBITDA was NOK 51.6 million (35.4), including special items of
negative NOK 5.9 million (5.0). Adjusted EBITDA was hence NOK 57.5 million
(40.4), corresponding to an adjusted EBITDA margin of 29% (27%). 
- We took long steps forward in the right direction in the first quarter 2022.
We continue to deliver on our organic growth targets and we show improved
profitability for the first quarter of 2022. Our focus remains on generating
strong and profitable growth in the existing businesses and we are intensifying
our efforts to reduce costs and cash spending to further bolster improvements in
earnings and cash flow, says CEO Terje Wibe in Mercell. 
In the current market environment Mercell has put its M&A strategy on hold and
is deploying its resources to enable continued strong and profitable growth in
the existing business. Mercell aims for 15%-20% average annual growth in ARR in
existing markets, with a long-term EBITDA-target level of 40%+.
CEO Terje Wibe and interim CFO Erik Hokholt will host a presentation and Q&A
session today at 08:00 CEST. Please use the following link to access the
presentation: 
https://streams.eventcdn.net/mercell/q1-2022

The presentation will be followed by a Q&A session with the management.
Questions may be asked in writing during and after the presentation in the
questionnaire below the webcast window. 

The report, presentation and the link to the webcast will be made available at:
https://investor.mercell.com

For further information, please contact: 
CEO Terje Wibe		
Cell: +47 90 83 79 98
Email: terje.wibe@mercell.com	


About Mercell Holding:

Mercell delivers services to public and private buyers and our goal is to become
the leading software-as-a-service (SaaS)-platform for e-tendering and
procurement in Europe. Mercell is already a leading platform for public
e-tendering and entered the procurement market in 2020, and services
approximately 30,000 customers across 15 European markets and in the US.
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. We also ensure suppliers find relevant business
opportunities and offer tools for suppliers to digitally receive and handle
purchases from public and private buyers.

This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.