Briox: Continues to strengthen its product offering - ABG

ARR crossed SEK 10m in Q2, up 44% y-o-y Ests: slightly lower sales ‘22e, higher product dev. costs Share trading at 15x-12x EV/sales on ‘23e-‘24e Briox grew sales 49% and secured new financing Q2

Briox maintained a high growth rate in Q2, expanding sales by 49% y-o-y to SEK 2.05m, which remains 11% below our forecast of SEK 2.31m. ARR grew 9% q-o-q to SEK 10.2m, up 44% over last year. The number of bureau partners using Briox increased by five vs. last quarter to 217. Active licenses grew 8% q-o-q, up to 12,426. EBIT was SEK -5.9m vs. ABGSCe SEK -5.3m. This was because of slightly higher opex than expected and the lower sales. It net recruited one employee in the quarter, which we did not expect, while cost per employee rose 5% y-o-y. Among the highlights of the report was that Briox, via a partnership with Finnish company KTI Laskutus, will start offering a factoring solution (buying accounts receivables from users). This is like the financing solution that Fortnox offer its users. Briox also further strengthens its platform by integrating self-learning and automation technology from Arkimera Robotics. This will add significant value to the offering, according to Briox. The firm also secured SEK 43m of new equity financing. With the cash at hand, we believe Briox has the resources to continue its growth journey towards sustainable profitability.

We lower ‘22e-‘24e EBIT by SEK 1m p.a. We make some adjustments to our estimates on the back of this report. We add the lower sales in Q2 to the full year numbers and make a slight cut to H2’22e sales. As a result, we cut ‘22e sales by 8% but keep ‘23e-‘24e flat. We also add slightly higher opex, reflecting higher investments in product development. Because of this, we lower ‘22e-‘24e EBITDA to SEK -13m, -9m and -5m, from SEK -12m, -8m and -4m, respectively.

'23e-‘24e EV/sales of 15x-12x is well below historical average With secured financing and a crisper offering that caters specifically to the micro business segment, we are posi ... Läs mer på ABG Sundal Collier

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