elop_q4.report.2021
3. March 2022

Simplifai delivers another strong quarter with year-on-year growth of 233 percent. First Elop Insight units delivered to customers | Q4 2021 financial results

3 March 2022 – The first Elop Insight units have been shipped to customers in fourth quarter. Simplifai growth continues, wins several important contracts resulting monthly recurring revenue (MRR) of NOK 1.1 million at end of Q4, a growth of 233 percent year-on-year. Simplifai also announces an ambition of NOK 1 billion in ARR by end-2026.

ELOP continue to see huge interest from all over the world for its technology.

Since the end of Q3, Elop Technology has signed several new partner and distributor agreements securing sale, distribution and promotion of its technology in a total of 18 countries. There are ongoing discussions and negotiations with multiple distributors and partners, and further agreements are expected to be announced in the coming months. The company expects to be present with its technology and products in 50+ countries before end of 2022

“ELOP is in process of opening up a non-existing market with a new and unique technology. In 2021, we introduced our technology to the world, now we are focusing on securing distribution and presence in relevant markets. In parallel, we run field-tests and demos together with our partners to showcase how our technology can be used by asset owners around the world. The response has been fantastic and we are convinced that our work will open up high volume markets for our technology,” says Øivind Horpestad, executive chairman of Elop

The most important driver for the significant market interest is that asset owners for the first time can demand handover documentation that confirms the quality of newbuild concrete structure.

“We expect that ultrasound will become a standard part of the hand-over inspection and documentation of all critical concrete structures in the future. At least one major asset owner has already decided to add this requirement to their handbook. They will require quality control of newbuild concrete constructions as standard part of handover documentation before accepting delivery. We expect others to follow, and this will create a huge demand for technology like ours,” adds Horpestad.

The first Elop Insights units have been delivered in the fourth quarter.

Strong Simplifai growth Elop’s AI business unit,

Simplifai, continues to deliver strong growth figures. The company won several important contracts in the fourth quarter and have continued to win further awards in 2022.

In the fourth quarter 2021, Simplifai delivered a year-on-year growth of contracted monthly recurring revenue (MRR) of 233 percent.

“Simplifai delivers a strong quarter. We have been successfully benchmarked, tested and compared against other solutions. We have won several contracts due to our unique solutions and we are experiencing increased recognition and acceptance in the market for our solutions, both at home and internationally,” says Bård Myrstad, COO of Elop and Managing Director of Simplifai.

As a result of a rapidly growing track record for Simplifai’s AI-driven Digital Employee technologies, the company is also starting to tap into the upsell potential in existing client relationships.

The combination of strong growth and a highly promising market outlook has led to Simplifai announcing a NOK 1 billion ARR target by the end of 2026.

“Our MRR grew by 233 percent in 2021, which represented the starting point for adoption of our technology in many geographical markets. For year-end 2022, we target MRR that is 3-4 times higher than at year-end 2021,” adds Bård Myrstad.

Development of Insight Crawler according to plan

The partnership with DEKRA Visatec and ICM and the development of our ultrasound robot “Insight Crawler” is progressing according to plan. Successful tests of the prototype have been conducted.

“We are pleased that the development of the Insight Crawler is progressing well. We have some very exciting weeks ahead of us. We target to launch the Insight Crawler at the end of Q1 2022,” says Øivind Horpestad.

Q4 2021 results

Elop Group delivered operating revenues of NOK 5.0 million in in Q4 2021, versus NOK 0 million in the same quarter last year. The group operating revenues were NOK 13.3 million in 2021 Elop held cash and cash equivalents of NOK 124 million at end of Q4 2021.

Elop completed a private placement raising gross proceeds of NOK 100 million at the start of Q4 2021.

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