Year of 2024 was significant for Admicom in terms of strategy. We built the foundation for our accelerated growth by promoting the breadth of our product portfolio, consistency between the different stages of the construction value chain, and improving our internal capabilities to support accelerated growth. This was a determined continuation of our growth strategy and strengthened our position as a provider of software solutions that improve productivity in the construction and real estate industries.
In the beginning of the year, we expanded our product family by acquiring Trackinno Oy, a provider of fleet management solutions. This acquisition complemented our offering to meet customer needs and opened up new market opportunities. At the end of the year, we took a significant step towards internationalization by acquiring Estonian Bauhub, whose software solutions complement our project management portfolio and open up new opportunities for international growth.
The growth in Annual Recurring Revenue (ARR) in 2024 was approximately 10%, which can be considered a reasonable performance in a challenging market situation. Growth was challenged especially by the high customer churn due to bankruptcies and invoicing based on the revenue of the customers of Ultima ERP system, more specifically the decrease in annual adjustment fees based on customers’ revenue, and customer contract updates. Despite this, we strengthened our customer base, and net customer growth was at the highest level of the year in the final quarter. Encouraging results were achieved in new and cross sales, especially in the smaller customer segment.
During the year, we invested significantly in product development and improving the user experience. In April, we launched a modern and customizable front page for Ultima customers and introduced the first AI-powered solutions to support productivity in the construction industry. The debut of our AI vision in the third quarter showed how we can combine our different products and provide our customers with a seamless user experience. These innovative solutions strengthen our competitiveness and create significant added value for our customers.
We also continued to build a strong company culture by bringing our offering together under one Admicom brand and clarifying our core values: we care, we dare and we grow. The cultural work will continue in 2025 with the aim of making Admicom the leading construction partner for our customers and the best workplace in the field for our employees.
During the year, we took important steps in the field of sustainability. We started our sustainability strategy work, which will be reflected in both our own operations and our customers’ offerings. We develop solutions that support our customers in reducing their carbon footprint and achieving their sustainability goals.
At the end of the year, there was a change of CEO when Admicom’s Board of Directors appointed me as the new CEO of the Group. My goal is to clarify our strategic target towards the 2030 vision and our growth towards the EUR 100 million ARR target. We will crystallize and accelerate the execution of our strategy, enabling accelerated growth and international expansion in the coming years.
For us, 2024 was a year of rapid changes, learning and strengthening the main pillars. In 2025, we believe that our investments in product development, customer experience, and sales and marketing will start to bear fruit. I am very optimistic that Admicom will become a leading international learning construction partner for our customers.
I would like to thank our personnel, customers and partners for their commitment and trust. Together we are building a sustainable future and creating conditions for growth also in the coming years.
Simo Leisti
CEO