Oslo, 24 August 2023: The second quarter for Itera was characterised by solid
organic growth of 23% and an operating profit margin of 8.2%. 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.

For more information:

Arne Mjøs, CEO | arne.mjos@itera.com | +47 905 23 172
Bent Hammer, CFO | bent.hammer@itera.com | +47 982 15 497

 
About Itera - specialist in sustainable digital transformation  
Itera is a leading international tech company that helps businesses and
organisations to accelerate their sustainable digital transformation. We have a
holistic ability to bring digital to the core of their business because of our
full range of services in digital strategy and consulting, customer experience,
technology, and cloud operations. Our integrated services and multi-disciplined
teams meet customer needs rapidly and at scale through our world-class
distributed delivery model across borders and our Digital Factory at Scale,
doing more for less. For the past six years, Itera has been recognised as one of
Norway's 25 most innovative companies, and its distributed delivery model was
recognised as the best in the world by the Global Sourcing Association (GSA) in
2018. Working from our 13 offices in the Nordics and Central and Eastern Europe,
we serve customers in 20 countries worldwide. Itera is a listed company on the
Oslo Stock Exchange under the ticker ITERA.