Interim report, January - June 2023
In Q2 2023 net sales increased by 23% compared to Q2 2022. Consolidated net sales ended at 74,820 (SEK 000s). EBITDA totaled to -17,615 (SEK 000s). Operating profit, EBIT, was -39,743 (SEK 000s). Profit after tax was -39,799 (SEK 000s). Earnings per share was SEK -0.59.
For 1H 2023 net sales increased by 22% compared to 1H 2022. Consolidated net sales ended at 153,558 (SEK 000s). EBITDA totaled to -29,895 (SEK 000s). Operating profit, EBIT, was -73,937 (SEK 000s). Profit after tax was -83,307 (SEK 000s). Earnings per share was SEK -1.23.
CEO's comments
The heavy investments are setting the stage for a solid improvement in the second half of 2023
24SevenOffice Group AB is pleased to share that the second quarter of 2023 will be the last quarter this year with substantial losses. As communicated in the previous trading update this month, the new management’s continued and heavy product investments, together with a strong growth focus and profitability driving initiatives, have proved successful and are expected to drive sustainable growth and a positive EBITDA by end of this year.
As the second quarter has come to an end, 24SevenOffice is continuing to demonstrate consistent revenue growth even in the challenging conditions experienced in the market today. The financial results for the second quarter show a consistent and robust growth of 23% to MSEK 75 in net sales for 2Q 2023, a MSEK 14 increase from last year.
Although the second quarter's EBITDA is lower compared to the first quarter of this year, it still exhibits a notable year-on-year improvement from the corresponding period in 2022. The EBITDA ended negative at MSEK 17, which is nearly a 50% improvement from the corresponding period in 2022, and indicates the robust growth and positive EBITDA that 24SevenOffice should experience by the end of this year.
In addition to the inspiring outlook of reaching a positive EBITDA by end of this year, 24SevenOffice is also pleased to announce it has now turned MSEK 300 in recurring revenue and its growth rate is set to increase further the rest of the year due to commercial results from the heavy software investments and market traction observed today.
Setting the company up for profitable growth is a direct result of our robust technical advancements in the platform, highlighted by the comprehensive overhaul of 24SevenOffice's backend system, the introduction of an enhanced user interface and design, and the launch of a REST-based integration platform. 24SevenOffice has over the last periods launched several new modules that will generate strong revenue growth streams, such as AI, Payroll & HRM, MRP, and financial add-ons and stand-alone modules such as payment processing and debt collection, among others.
Looking ahead, 24SevenOffice sees a promising future. With 24SevenOffice’s broad customer base and access to vast amounts of data, we are uniquely positioned to capitalize more on the potential of Artificial Intelligence (AI) and fintech offerings. We are confident this will deliver even greater value to the customers and represents potentially highly profitable opportunities that will solidify 24SevenOffice’s position in the market.
In closing, we wish to extend our profound gratitude to our investors and shareholders. Our commitment remains unchanged – to consistently grow with new and existing clients and partners, delivering sustained growth and profitability when the turnaround is completed.
This disclosure contains information that 24SevenOffice Group AB 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 24-08-2023 08:30 CET.
