Divio Technologies AB (publ) Year-end report 2021 - Grows Net sales by 38%

Divio Technologies AB (Publ) decision of allocating significant resources into sales and implementing new sales strategies shows great results. A strong start and continued growth throughout the year. Net sales increased by 38 % compared to the same period 2020.

Summary Of The Year-End Report 

For The Period 1 July 2021 To 31 December 2021

• MRR in December increased by 8% to 144 (133) KUSD
• Net sales increased by 38% to 7,607 (5,501) KSEK 
• Subscription revenue increased by 20% to 7,270 (6,047) KSEK
• Loss decreased to -5,619 (-8,413) KSEK
• Earnings per share before dilution was -0,066

For The Period 1 January 2021 To 31 December 2021

• MRR in December increased by 8% to 144 ( 133) KUSD 
• Net sales increased by 33% to 15,703 (11,791) KSEK
• Subscription revenue increased by 33% to 14,729 (11,096) KSEK
• Loss decreased to -10,878 (-18,610) KSEK
• Earnings per share before dilution was -0,130

Significant Events During The Half Year

• Strengthened the sales team with the addition of one new senior sales representatives in Sweden
• Strengthened the board of directors: Anette Ringnér took over as chairman, and Kimmo Björnsson returned to the board 

Important Events After The Half Year

• Established a partnership with three Swedish IT-consultancy companies
• Hired the first full time sales representative in Switzerland
• Strengthened the sales team in Sweden with an additional senior sales representative

Key indicators	July–Dec 2021	July–Dec 2020	2021
MRR (Monthly Recurring ReveKUSD December	144	133	144
Subscription revenue, KSEK	7,270	6,047	14,729
Cash and cash equivalents at the end of the period, KSEK	9,287	1,095	9,287

CEO Comment

I am very proud of how we have succeeded in everything we set out to do this autumn. 

Growing our customer base and revenue is everything to us right now and the only thing we focus on. That's true whether we’re talking about improving the platform or hiring new resources. 

2021 was a very important year for Divio, where we achieved many important goals. The implementation of the new sales strategy with the help of a team of senior sales specialists and partners in the IT consulting industry was a very important step.

Currently, we have three employees fully dedicated to sales with the support of one technical sales specialist. We have hired our first full-time sales representative in Switzerland, Divio’s first step in building a sales team focused on the Swiss banking sector. 

The second part of the sales strategy is to work with IT consultancy firms of various sizes. We started talking to potential consultancy firms in early 2021, and it took some time to find the right set-up for a partnership where partners can take full advantage of the Divio platform and our deep expertise in cloud infrastructure. Our platform and our expertise in cloud infrastructure are tremendous assets when IT consulting firms are both pitching to new clients and expanding their relationships with new clients. 

Through partnerships, we have achieved two important benefits. We have expanded our sales organisation with the help of partners who (1) already have access to large customers and (2) have a strong need to simplify their cloud infrastructure. These IT consulting firms, in turn, can improve their service because using our product means they save work-hours. 

The second advantage is that instead of positioning Divio as a competitor to IT consultancy firms, we have aligned ourselves with them. In an effort to improve partnerships with consultancies and achieve better results, we have revived the partnership format.. Our new sales team will be the critical factor for our success. 

To increase results, we also need a clear message and offering using an effective marketing platform. In the first half of 2021, we launched a partnership with a digital agency to put Divio on the map and improve the inbound sales channel. The impact has been significant. To further improve we hired a digital marketing specialist in December. We now have a steady production of content, articles, webinars, blog posts, etc. which, combined, have essentially increased interest in and recognition of Divio. The number of sign-ups for demonstrations, requests for more information, and meetings from prospective clients has significantly increased.

On the product side, the most important work we have done in 2021 is preparation for the ISO Certification. The heart of Divio is our state-of-the-art platform, and we've worked hard to improve it and secure our lead over the competition. As we target banks and insurance companies in line with our strategy, it is of the utmost importance that our platform meets the highest possible standards of compliance and security. 

Being certified is a requirement for many corporate companies to start the procurement process. By becoming certified, an external party verifies that we meet all requirements. We have put a lot of work into the compliance process, not only to meet the requirements, but to ensure a smooth process both for the audit in itself and especially when pitching and accepting new clients. 

We have developed a GRC (Governance, Risk and Compliance) tool that structures our policies and efficiently generates reports that are tailored to potential clients' requirements. We now have a solid basis for further certification. The certification will open up more dialogue and speed up the sales and procurement process. 

To further improve reporting to the market we have decided to begin with quarterly reporting starting Q3 2022.

We are now seeing the effects of an intensified focus on sales with an increased workforce combined with a digital marketing platform: more valid calls, more enquiries and curiosity from leads, but most importantly more customers. I am working with an amazing team that continues to grow and achieve amazing accomplishments.

Jon Levin

CEO

This disclosure contains information that Divio is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 4th of March 2022, 08:30