September 25, 2022

Techstep releases its annual report for 2021

2021 has been an important year for Techstep. We are transforming our business model from transactional sales to selling our product offering as a recurring revenue bundle, and at the same time the market opportunity is growing. Read more about our efforts during the year in the Annual Report 2021.

Techstep releases its annual report for 2021

Techstep is on a transformation journey of becoming the leading European mobile technology enabler for customers that want to work smarter and more sustainably. Techstep’s growth and acquisition strategy, as well as own IP, software and mobility expertise has created a strong fundament for further transformation.

The changes made in 2021 will enhance financial predictability for Techstep, while at the same time ensure better value for our customers by providing them with a continuous service rather than one-off transactions. This thus, results in closer relationships with our customers and greater loyalty.

By redesigning and streamlining the product offering, we will win new customers and secure existing ones through investing in our own IP, software, and mobility expertise, and continue to pursue M&A opportunities to further add attractive capabilities and expand geographical ly. Driven by value-creating services and economies of scale, as the company continue goal is to improve gross margins and profitability significantly over the long Strategic pillars Grow profitably while transforming towards recurring revenue term.

Read the Annual Report 2021

Main developments in 2021

In 2021, Techstep has focused on pursuing its software-led growth strategy, the transformation to a recurring business model and becoming a complete mobile technology enabler. Techstep continued to improve and refine its product offering, designed as a recurring services bundle that integrates own IP, software, and mobility expertise to fulfil the needs of the customer and its end users.

In the second half of 2021, Techstep focused on evolving its product offering to the new smart product portfolio consisting of SmartControl, SmartWorks and SmartDevice. The new portfolio launched March 2022. The purpose is to better clarify Techstep’s value proposition.

Financial highlights

  • Annual recurring revenue base on own software IP (ARR) was NOK 97.5 million, whereof MMS-related ARR was 69.6 million at the end of 2021. Compared with 2020, this represents a 54% annual growth including the acquisition of Famoc.
  • Full-year revenue amounted to NOK 1 305 million for 2021, compared to NOK 1 143 million in 2020.
  • Hardware sales (including bonus from vendors) remain the largest revenue generator with NOK 821 million.
  • Gross profit was NOK 460 million for the full year 2021 (NOK 378 million). This mainly relates to an increase in the Hardware-as-a-Service portfolio and acquisitions in 2021. 

Sustainability topics material to our business and stakeholders

New for this year is the sustainability section in the report, which is prepared in alignment with the Global Reporting Initiative (GRI) standards. It covers our efforts to identify our most material environmental, social and governance (ESG) issues and articulate our sustainability priorities.

Several improvements and initiatives on ESG were conducted in 2021. Amongst other things, we stablished a group-wide climate accountancy to get an overview of our direct and indirect emissions and a baseline for reduction initiatives. We also initiated an upgrade of our ESG policies and procedures to reflect the new strategic direction and align it better with increased focus on sustainability in the organisation.

Continuous dialogue with our stakeholders is considered crucial for sustainable growth, ensuring valuable insight and opportunities for improvement. In 2021, we conducted a materiality assessment to identify the sustainability topics that are most material to our business and stakeholders. These form the basis for the sustainability report, and are considered important if we are to meet our objective of making the world of work smarter and more sustainable.

More details on Techstep’s ESG activities are included in a separate sustainability chapter of the annual report.

Click here to access the full report.

 

About Techstep ASA

Techstep is a complete mobile technology enabler, making positive changes to the world of work; freeing people to work more effectively, securely and
sustainably. We help customers who want to work smarter, while also delivering
on their ESG commitments. With more than 350 employees based in Norway, Sweden,Denmark and Poland, we serve more than 2,000 enterprise customers in Europe. Techstep has NOK 1.3 billion in full year 2021 revenues, and is listed on the Oslo Stock Exchange under the ticker TECH.

For further information, please contact:

Anita Huun
Chief Financial Officer
anita.huun@techstep.io
+47 92 41 15 63

Rebecca Paulina van Vuuren Author

Rebecca Paulina van Vuuren

Nordic Digital Marketing Manager

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