AROBS Transilvania Software (BVB: AROBS), the largest technology company listed on the Bucharest Stock Exchange, reports consolidated operating income of 133.2 million lei in the first quarter of 2023, up 113% year-on-year, turnover 131.3 million lei, an increase of 113%, a normalized EBITDA of 25.5 million lei, an increase of 18%, and a normalized net profit of 19.3 million lei, an increase of 13%.

“Revenues for the first three months of 2023 exceed estimates of the consolidated revenue and expenditure budget by 25%, and normalized net income exceeds estimates for the first three months of 2023 by 13%. The first quarter set the tone for 2023, which we want to be very successful. The growth recorded at the level of consolidated turnover is based on several sources, one of which is organic, + 35% of the main company of the Group – AROBS Transilvania Software – which continues to perform extremely well, both in the area of ​​software services and also at the product level. Important growth was brought by the “Integrated Systems” specialization at AROBS Systems, which represents the business line responsible for the implementation of hardware and software services, as well as software products for customers in the public sector. Our colleagues contributed 27 million lei to turnover in the first quarter of 2023.

Overall, we had a very dynamic start to the year in terms of M&A deals, which is an important pillar of our growth strategy. They allow us to diversify our portfolio of services and products and increase the competitiveness of our group in the field of technology at the national and global levels. The companies involved in the Group in the first three months of the year, CDS GPS, SYDERAL Polska and companies from the Republic of Moldova, AROBS Software and TrackGPS, represent an important source of growth from the 1st quarter of 2023 and contribute to increasing the geographical footprint of the business and diversifying our services and products.” said Vojku Oprean, founder and CEO of AROBS.

AROBS Q1 2023 financial results include SYDERAL Polska financials as of February 2023. The Polish company was acquired at the end of January this year. Also, starting from February 2023, the results of two companies from the Republic of Moldova, AROBS Software and TrackGPS by AROBS, are included in the consolidation, their acquisition was completed by AROBS at the beginning of the same month.

In terms of consolidated revenue, for the first three months of 2023, software services accounted for 66%, integrated systems for 21%, and software products for 13%. Integrated systems represent one of the new directions of diversification in the group, AROBS Systems is responsible for the implementation of hardware and software solutions for customers in the public sector. This company has a team of professionals in the field of digitization of the public sector, and as a technical expertise covers the integration of complex systems and technologies of ORACLE, HP, DELL and Microsoft. In the first quarter of 2023, AROBS Systems completed a project for the procurement of software and hardware solutions aimed at consolidating databases necessary for the operation of the components of the Integrated Information System of Customs, thereby accounting for 21% of the turnover of the AROBS Group.

In 2023, AROBS plans to achieve a turnover of 421.3 million lei, which is 40% more than in 2022, an EBITDA of 74.2 million lei, +12%, and a net profit of 45.2 million lei, which is 5 % more than in 2022. The results recorded for the first three months of 2023 exceed the estimated budget of the company for this period. Thus, the registered turnover is 25% higher than the company’s estimate for the first quarter of the year, the normalized EBITDA +20%, and the normalized net profit of 19.3 million lei is 11% higher than the planned normalized net profit for the first three quarters. EBITDA and normalized net income exclude the non-cash effect caused by the share option plan (SOP) programs that AROBS implements at the group company level and the amortization of goodwill generated by M&A activities.

“Since the publication of the corresponding results for 2022, we have chosen to present both normalized EBITDA and normalized net income, as they offer all stakeholders, from employees to investors, a more accurate perspective of productivity and operational efficiency at group level, excluding fluctuations determined by SOP programs , which AROBS implements at the level of all companies, and amortization of goodwill,– said Bohdan Tsiungradi, financial director of AROBS Grup.

“The SOP program is in its third version at AROBS and has been extended to other Group companies. While such programs may result in short-term fluctuations in financial performance, they demonstrate a strong commitment to our long-term growth by motivating and retaining our colleagues“,Voika Oprean added.

AROBS management estimates that global demand for services and software products will continue to grow as companies and organizations continue to need digitization of their processes. To operate in a competitive market, the software development industry constantly needs access to excellent resources in increasing numbers. The company also believes that in the area of ​​software products such as fleet management, business optimization, digital payments, HR solutions, implementation of digitization projects in the public sector, the market will continue to grow against the background of the problem and the economic and social context of recent years.

AROBS Transilvania Software has been listed on the AeRO market of the Bucharest Stock Exchange since December 2021. Currently, the company’s market capitalization is 880 million lei.

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About AROBS Transilvania software

AROBS Transilvania Software provides services and software solutions in various industries, with about 70 partners in the software services division, represented in Europe and America. The company’s software products are used by more than 11,000 customers in Europe and Asia. AROBS is represented in 11 locations in Romania and nine abroad, and more than 1,200 company specialists and employees create future solutions for the automotive industry, embedded systems, life sciences, travel, Internet of Things, fintech and enterprises.

More about the AROBS group: www.arobs.com and www.arobsgrup.ro.