While the macro environment continues to be uncertain overall, Itera delivered solid revenue growth and strong operational cash flow. The second quarter of 2023 represents the sixth consecutive quarter for which Itera has reported organic growth of over 20%, and its three-year average rate of growth is also in excess of 20%. 

Itera reports operating revenue of NOK 225.2 million (NOK 183.5 million) for the second quarter of 2023, which represents a growth of 23%.

- With the new generation of AI, we are in the midst of a massive platform shift that is going to transform every sector and every category of computing. From a long-term perspective, we can see how these technology developments will support our strengths. But using these technologies requires a deep understanding of their use cases and the process changes needed as well – the AI transformation of businesses. How to build this into an enterprise is very different and a great opportunity, says Arne Mjøs, CEO of Itera.

Itera’s headcount at the end of the second quarter of 2023 was 741, compared to 661 at the end of the second quarter of 2022. This represents an increase of 10 employees in the second quarter and 80 employees (+12%) during the last 12 months.

- We also continued to leverage our Digital Factory at Scale, doing more with less through automation and managed services, which means our overall headcount will not really need to grow at the same rate as our revenue growth, says Arne Mjøs.

Total operating expenses in the second quarter of 2023 were 28% higher at NOK 206.9 million (NOK 162.0 million).

The operating result before depreciation and amortisation (EBITDA) for the second quarter of 2023 was a profit of NOK 26.4 million (NOK 28.8 million), giving an EBITDA margin of 11.7% (15.7%). 

The operating result (EBIT) for the second quarter was a profit of NOK 18.4 million (NOK 21.5 million), giving an EBIT margin of 8.2% (11.7%). 

- We continued to invest significantly in our people and our business, including salary adjustments to compensate high inflation and several extensive training activities abroad. During the quarter we also moved our headquarters in Oslo to new facilities in the city centre. Our Cloud Application & Services is still an economic investment case towards managed services and subscription revenue until critical business volume is achieved, says Mjøs.

The revenue from Itera's 30 largest customers accounted for 83% of its operating revenue, which is one percentage point higher than in the second quarter of 2022. New customers, defined as customers won during the last 12 months, accounted for 7% (10%) of revenue.