Equity Insights by Pinpoint - Exsitec

Exsitec helps medium-sized companies automate administrative processes. By offering software from partners along with integrations that make these solutions work seamlessly together, customers can focus on growing their business rather than on administrative tasks. The company is listed on First North under the ticker $EXS and currently has a market capitalization of SEK 1,870 million. Revenues consist of a combination of consulting services and recurring income from software and support, contributing to a stable earnings base.

Business Model

Exsitec provides software to medium-sized companies with digitalization needs, helping them automate administrative processes. The company offers around twenty external software solutions in areas such as procurement, invoice management, inventory management, sales, and payroll systems, ensuring these work together effectively. The main advantage for Exsitec’s customers is that they receive a tailored solution at a lower cost than a fully custom-built system. The business model is based on selling software combined with consulting services for customization and implementation. The software is external, with revenues shared between Exsitec and the software vendor. Exsitec, however, develops its own integrations between software solutions and charges a recurring fee for their use. Accompanied by support services, this makes Exsitec a reliable IT partner responsible for the systems, ensuring stable and recurring revenues.

Exsitec has about twenty software partners and aims to be the leading reseller of these partners’ solutions in its local markets. Many of the partners are larger than Exsitec, but because Exsitec provides an important local sales channel, this creates a balanced partnership.

Revenue Breakdown

Software is the cornerstone of Exsitec’s offering, with recurring software revenues accounting for 23% of total sales. Revenues are reported net, meaning the gross amount is higher since it is shared with the software vendor. In addition to revenues from external software, Exsitec charges a subscription fee for its own developed integrations that ensure the software works together.

Implementing and customizing software requires consulting services – which also account for the majority of the company’s revenue. This work typically includes advisory, training, and customer-specific development to integrate new software with existing systems and enhance existing software. Consulting services represent approximately 65% of total revenue.

Once the service is delivered, Exsitec provides ongoing management and support for a fixed monthly fee. Around 10% of revenue comes from support and infrastructure – a relatively small share, but important for customer relationships and opportunities to sell additional software solutions.

Recurring Software Revenues

Recurring revenues have historically grown faster than total revenues. Between 2021 and 2024, recurring software revenues increased by an average of 34% per year, currently amounting to SEK 207 million. These recurring revenues contribute to a stable and profitable revenue base.

Customers

Exsitec’s customers are medium-sized companies with revenues ranging from SEK 50 million to around SEK 1 billion. These companies often need to automate and streamline administrative processes to avoid excessive manual work as they grow. The customers are not the largest companies – the so-called enterprise segment – as competition in that segment is very different, and these organizations have well-established preferences for which systems to use. Exsitec’s target group is large enough to benefit from digital tools but small enough to need help selecting and implementing software that works together.

Customers span a wide range of industries, from funeral homes to café chains. Exsitec currently serves more than 5,000 customers, and no single customer accounts for more than a few percent of total revenue. The addressable market is estimated at approximately 30,000 companies, expected to grow by about 2% annually. Exsitec aims for 15% annual growth, focusing on deepening relationships with existing customers and expanding the offering with new services.

Financials

Exsitec has a history of strong growth. Since 2018, revenue per share has increased by an average of 23% per year, while growth over the past three years has averaged 13%. Growth has been driven by both organic expansion and acquisitions, with an approximate 60/40 split in favor of acquisitions. Some acquisitions consisted solely of customer bases, allowing Exsitec to quickly take over contracts and support, and thereby rapidly grow in specific segments or markets.

The most recent acquisition, BrightCom Solutions in November 2024, was more strategically oriented. It provides Exsitec with a new platform for expansion within Microsoft business systems. Exsitec already had experience with certain Microsoft software, but BrightCom’s expertise in Dynamics 365 Business Central strengthens Exsitec’s offering to the e-commerce sector. The acquisition initially contributed around 8% to revenue and likely more to profits, as BrightCom’s adjusted EBITA margin was around 25%.

Since 2018, Exsitec has demonstrated stable and high profitability, as well as strong cash flow. It is important to note that figures for 2020 and earlier are reported under the K3 standard, which involves amortizing goodwill over time, significantly affecting reported results given the company’s acquisition activity. From 2021, IFRS is applied, resulting in lower depreciation and higher reported earnings.

The adjusted operating margin (EBITA) has historically ranged between 15% and 18%, with an average of 16%, regardless of whether the last three, five, or seven years are considered.

As shown in the graph above, reported operating profit (EBIT) is slightly lower than adjusted EBITA. In the last fiscal year, the difference amounted to just over SEK 30 million, corresponding to approximately four percentage points in margin. About SEK 25 million is explained by amortization of intangible assets, mainly customer relationships, which does not affect cash flow. The remainder consists of acquisition-related personnel costs.

Financial Targets

Ownership Structure

The largest shareholder in Exsitec is Syntrans AB, a Swedish family office investing long-term in Swedish technology companies. Peter Viberg represents the company as chairman of the board. Investment companies Grenspecialisten and Creades each hold around 10%. Board member Johan Kallblad, who served as CEO for 15 years, owns 7% of the company, valued at approximately SEK 125 million. Exsitec’s current CEO (since 2025), Niklas Ek, currently holds shares worth SEK 0.9 million.

Estimates & Valuation

2024 was marked by cautious investment behavior among many of Exsitec’s customers, negatively affecting organic growth. Organic revenue decreased by 1%, but total revenue increased by 8% due to acquisitions. EBIT margin fell to 11.1% (from 13.4%), partly due to deliberate investments in future growth.

Growth is expected to be higher in the current year (+10%), and next year Exsitec is expected to approach SEK 1 billion in revenue. Margins are expected to return to historical levels, and based on investor expectations, Exsitec is trading at EV/EBIT 16.3 on 2026 figures.

*EBIT based on Pinpoint consensus for 2025 and 2026. Enterprise value 2,172 MSEK (as of 2025.10.09) including net debt and leasing.

Q3 Report – October 23

Next week, Exsitec will publish its Q3 report. Ahead of the report, the company is expected to accelerate growth compared to the previous quarter while improving profitability compared to the same period last year. Submit your estimate to access consensus and peer expectations:

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Learn more about the company on their IR site:

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