Divio Technologies AB (publ) increased net sales by 38% and secured MSEK 10 in equity before expenses

SUMMARY OF THE REPORT 

Fourth quarter: 1 OCT 2022 TO 31 DEC 2022

• Net sales increased by 38%, to KSEK 5,310 (3,849) 
• Subscription revenue was KSEK 4,373 (3,693) 
• MRR in December was KUSD 136 (144)
• EBIT was KSEK -2,463 (-4,277) 
• EPS before dilution was SEK -0,01 (-0,05)
• Cash position was KSEK 2.057 (9.287)
  (payment from share issue was in Jan 2023)

Full Year: 1 JAN 2022 TO 31 DEC 2022

• Net sales increased by 20%, to KSEK 18,840 (15,703) 
• Subscription revenue was KSEK 16,290 (14,729) 
• EBIT was KSEK -10,399 (-11,533)
• EPS before dilution was SEK -0,11 (-0,13)

SIGNIFICANT EVENTS (Fourth quarter)

• The Board of Directors decided to execute an issue of units, consisting of shares and free warrants to raise capital to fund new sales- and partnership strategy
• Bridge loan of MSEK 2 secured
• The issue of units was subscribed to at a rate of 82.6%, initially raising MSEK 9.9 before issue costs

SIGNIFICANT EVENTS (Full year)

• Completed fundraising of MSEK 9.9 before costs
• Achieved ISO 27001 certification 
• Strengthened Board of Directors by recruiting Leif Liljebrunn as Chairman and recruited Fredrik Wallmark as CFO
• Launched new sales strategy targeting SMEs and enhanced the onboarding process

SIGNIFICANT EVENTS AFTER THE QUARTER

• A sales partnership agreement was signed with successful entrepreneurs Eric Falk and Anders Högberg, aimed at providing hands-on assistance in evaluating and improving Divio’s sales process and service offering
• The funds raised by the unit issue were paid out to the company in January. Shares and warrants have been issued

CEO COMMENTS

I am very pleased with the course Divio is on; everything is going in the right direction. Our net sales improved by 38% in Q4; we made some important changes to our sales strategy and we finally have an effective and competent sales team in place. I am also proud that almost 83% of our shareholders decided to support the company in the unit issue, which is confirmation of their continued belief in the company. 

We have set a tough target for sales growth over the next few years, and we are on track to deliver on this target. Net sales and subscription revenue are increasing, which is proof that we are heading in the right direction. Our new sales strategy is also increasing business with existing customers and helping to accelerate dialogue with new customers. 

The last quarter of the year saw a strong increase in revenues of 38%. Growth was 20% for the full year, and we have set an average annual growth target of 30% over the next five years. At the same time, costs have fallen, and our final result is a significant improvement on the same quarter last year. Part of our strategy is to strengthen the sales and engineering team. This will increase costs which is why we raised equity in December. However, we aim to achieve a positive cash flow by the end of the year. This, together with an increase in sales, is a very important goal for us. 

I am delighted that we now have the strongest and most competent sales team in Divio’s history, with the right skills, experience and abilities to deliver. A team with experience of complex sales, and an understanding of effective methods for reaching the right decision makers, and a broad network of relevant potential customers. Their combined competence will not only generate more leads, but also revitalise our sales approach and increase our velocity. We have set key sales targets for 2023, and we are well on our way to achieving them. Of course, we are also aiming to exceed our targets. 

As noted previously, Divio has established an outstanding partnership with Amazon Web Services (AWS) as a launch partner for their newly established Swiss region. AWS is one of the world's largest cloud providers, and this this partnership gives us the opportunity to reach more potential customers through the offerings of a much larger sales organisation. This partnership is another clear indication of the quality and professionalism of our team.

Now that our organisation has been strengthened with additional resources in sales, marketing and technology, but also on the administrative side with our new CFO, the sales team and I can really focus on what is important - supporting our customers and winning new ones in accordance with our well-developed and updated sales strategy.

On the development side, our team has made great progress in improving and updating our platform and services. Their technical expertise and creativity have resulted in new features and enhancements that have received great feedback from our customers.

Finally, our new strategy has been instrumental in guiding us towards growth. The strategic planning and implementation of new processes has enabled us to boost efficiency and improve decision-making.

We can be proud of what we have accomplished so far, and we look forward to continued success as a team. 

Thank you, and keep up the good work, everyone!

Jon Levin, CEO