Divio Technologies AB (Publ) has increased subscription revenue by 48% and reduced the loss with 52%

Divio Technologies AB (Publ) has made a strong start to 2021, with a new sales team, and a new sales and marketing strategy, and growth continues to increase steadily. Subscription revenue has improved by 48% compared with the same period last year and net sales increased by 28%, and the figure is 40% if currency exchange effects are excluded. The company also reduced the loss with 52%. 

Due to the half year report, Divio Technologies will broadcast a presentation via Zoom on Monday 30/8 at 10:00 where CEO Jon Levin will present the report, viewers will also have the opportunity to ask questions via a chat. The broadcast can be accessed via the link:https://tv.streamfabriken.com/divio-augusti-2021

Summary of the half-year report 

For the period 1 January 2021 to 30 June 2021

• Net sales increased by 29%, or 40% FX adjusted to 8,096 (6,290) KSEK 
• Subscription revenue increased by 48% to 7,459 (5,050) KSEK
• Operating loss decreased by 52% to -4,744 (-9,938) KSEK
• EBITA improved to -5,253 (-10,130) KSEK

Significant events during the period

• Onboarded 32 new customers
• Onboarded several new partners
• Direct Issue of 20.2 MSEK in March
• Rolled out a successful marketing campaign to attract new customers
• Strengthened the sales team with the addition of two new senior sales representatives in Sweden
• Recruited an experienced Head of Finance 

Important events after the period

• Strengthened the board of directors: Anette Ringnér took over as chairman, and Kimmo Björnsson returned to the board 
• Established a partnership with a Swedish IT consultancy company
• Strengthened the sales team in Sweden with the addition of a senior technical sales representative and a senior sales representative 

CEO Comments 

Divio has started the year very strongly. I am proud to state that we have achieved a significant number of milestones during this time, and that we are progressing in line with our strategy and goals.

In March, we raised SEK 20.2 million via long-term investors, and we are in a strong position to execute our growth activities, with a focus on sales and marketing.

Sales has been a key activity, and I am glad everyone at the company has played a part in achieving our goals. We have successfully onboarded two senior sales representatives in Sweden, who have made an excellent contribution to building up the sales team. We have also recruited a senior technical sales representative in Stockholm. Going forward, we intend to further develop sales in our prime regions.

We have a well-filled sales pipeline, with many potential leads due to a shorter ramp-up than expected. We are confident of good results in the last quarter of the year, and we anticipate a range of new customers. I am also very gratified that existing customers are increasingly looking to expand their relationships with us. The core of our customer strategy is to start small and build the relationship over time.

As sales and marketing are closely connected, we have also, together with our partner what.digital, worked intensively to put Divio on the map via LinkedIn, Google and a variety of other marketing solutions, enabling more customers to experience the benefits of our solution. We will continue to step up these efforts in the later part of the year.

I am very excited about the implementation of our new sales strategy, focusing on the banking and financial sector, which is part of our growth plan. In addition, we will build partnerships with international IT consultancies and other leading solution providers in this sector, as well as other suppliers with high demand on compliance and security. Our platform will significantly strengthen their customer offering, ensuring excellent benefits both for Divio and for our partners. We have also partnered with several digital agencies, which have an in-depth understanding of our platform and will include it in their offering to customers.

We have invested significant time towards our goal of achieving ISO 27001 certification for our platform during this year. This certification will be a game changer for our future sales. It will provide independent confirmation of our capacity to meet the requirements of large customers and better enable us to target enterprise and financial customers with high demands regarding security. We already meet the needs of this type of customer, but ISO certification will help to shorten our lead times for sales and client onboarding.

I would also like to give an update regarding the board of directors. Divio has entered into a more mature growth phase, which has led us to make some changes to the board. We are pleased to announce that Anette Ringnér has agreed to chair the board. Anette brings strong leadership skills, a sharp analytical eye and sales experience from large IT consultancy and software firms such as CGI. We also welcome Kimmo Björnsson to the board. Kimmo is a serial entrepreneur whose ventures include mat.se and the web agency Daddy. His experience as a developer, CFO and board member has given him a rare combination of skills, and Kimmo will support Divio in a wide range of areas.

The whole company is bubbling with energy and enthusiasm, and it is a pleasure to watch the progress we are making. We have the wind under our wings, and we are meeting our internal targets and goals. I am proud of the whole team, and we are eager to make even greater advancement throughout the rest of the year. 

Jon Levin
CEO