Continued Strong Organic Growth
Revenue in the Trifork Group in the first quarter of 2022 was EURm 45.8, an increase of 16.3% compared to the same period in 2021. When adjusted for the deconsolidation of Dawn Health, organic growth was 17.8%.
In the Trifork segment we in the period realized an adjusted EBITDA-margin of 17.6%. This was a lower margin than the same period in 2021 (19.5%). The most significant reason for the decreased margins has been due to non-capitalized investments of EURm 0.6 in Trifork Operations (DK and CH) and also because of EURm 1.7 in external license sales with low margins in the first quarter 2022.
The Trifork segment adjusted EBITDA in the first quarter of 2022 was EURm 8.1 (no adjustments on special items) which was EURm 0.4 higher than in 2021 where EURm 7.7 was reported. The Trifork Group EBIT in the first quarter of 2022 was EURm 4.7, an increase of 87.1% from the first quarter 2021 and corresponding to an EBIT-margin of 10.3%.
For 2022 we continue to target EURm 175-180 in total revenue, EURm 29.5-32.0 in Trifork segment adjusted EBITDA and EURm 15.5 to 18.0 in Trifork Group EBIT.
I’m glad to, once again, be able to meet all our colleagues in our offices and to feel their energy and eagerness to change the world with software. We appreciate the trust shown by our customers in letting us continue to develop exciting software for them.
In the first quarter of 2022 we managed to come back to our offices and re-introduce more social arrangements which were impossible during the Covid lockdowns. That said many of our employees continued to work remote and we expect to see this hybrid way of working to continue in the future. Being closer together caused more sickness in some offices in the beginning of the year – but this now seem to have normalized again and we don’t expect this to have any significant effect on our financial performance in the remaining part of the year.
Trifork in Q1-2022 succeeded to become more than 1,000 employees. I’m proud of and satisfied to see that our very flat teal organization where developers leads developers continues to proof its value and effectiveness, now with 60 customer facing business units.
In the first quarter of 2022 we did not complete any in-person conferences, but since most Covid-related restrictions now has been removed in all countries where Trifork operate we in the rest of 2022 are planning to complete conferences in both Amsterdam, London, Aarhus and Copenhagen. We have also continued to create new content to our YouTube tech channel which now has grown to more than 284,000 subscribers and 31.8 million views.
In the first quarter of 2022 we won a new four-years extension of a contract to continue with our deliveries to the Danish Business authorities and we also won a tender to deliver both infrastructure and solutions to a new player in the Swiss Digital Health infrastructure. This contract is currently being negotiated.
Overall, Trifork sees opportunities for growth. We believe that we fit in a changing world and that we can be part of improving the world by developing fantastic software.
The 2021 deconsolidation of our Dawn Health business unit of course has an effect on our growth ratios and performance in 2022 compared to 2021 where this business unit was consolidated for 11 months in our Digital Health business area. In our reporting we provide full transparency for this effect.
In our Digital Health business area we launched a new Pregnancy app on selected Danish hospitals as part of a planned pilot testing and we signed a new strategic contract with the Danish Medicines Agency based on the Trifork Cloud Stack platform product. This is a product where we see a great potential for growth in several markets.
In the end of Q1 we on-boarded the two first customers in our Swiss operation centre and in March our new Danish Tier-3 operation centre was finally operational. We are now starting to on-board new customers in this modern and very energy-efficient facility and provide on-prem cloud solutions as well as Cyber protection services. In Q1 we extraordinary invested EURm 0.6 in optimizing operation in these facilities and we expect to invest around EURm 1.5 additional during the rest of the year. The purpose of the investments is to be able to be even more profitable in the future.
In Trifork Labs, we were also active in Q1-2022. One of the most interesting investments has been the investment in Promon, who is delivering App-shield technologies to protect mobile applications on all kind of mobile devices. Trifork in connection with this became a reseller of the Promon products and we see this fit very well into our Cyber Protection offerings.