Interim report, January - March 2024

In Q1 2024 net sales increased by 33% compared to Q1 2023. Consolidated net sales ended at 104,509 (SEK 000s). EBITDA totaled to 23,493 (SEK 000s). Operating profit, EBIT, was 2,453 (SEK 000s). Profit after tax was 5,759 (SEK 000s). Earnings per share was SEK 0.08.

CEO's comments

Continuing Our Extraordinary Organic Growth Journey Reaching Positive Cash Flow

I am truly proud and excited to share this quarter­ly report where the organic growth continued to be strong with a 33% year over year growth, the third consecutive quarter with over 30% growth. We also reached an important milestone on our growth journey with an EBITDA margin of 22 % and positive cashflow for the quarter, significantly over the Rule of 40 target. As we close the first quarter of 2024 these results place 24SevenOf­fice as one of the top organic growth SaaS com­panies in the Nordics with unit economics also among the top tier with an LTV:CAC ratio of 20 and 13 months to recover CAC.

Over the last two years we have worked day and night to capitalize on the exciting growth oppor­tunities and have invested heavily in technolo­gy both on the core 24SevenOffice technology platform, AI accounting and several new business areas such as payroll, debt collection, HR and ma­terial resource planning (MRP) for manufacturing businesses. We have also modernized the brand­ing to reflect the new 24SevenOffice and entered into new markets to become a truly international B2B SaaS company with proven scalability.

We have built a world class team in 24SevenOffice and the dedication and hard work from our employees makes me both humble and proud. We will continue to build a strong team ready for delivering profitable growth in the years ahead which gives me great mo­tivation and strong belief for the continued journey the coming quarters and years.

The financial results for the first quarter show a continued and strong year-on-year growth of 33% to MSEK 104.5 in net sales for Q1 2024, a MSEK 26 increase from Q1 last year. The recurring revenue base has at the end of the quarter passed MSEK 400. We are confident this growth momentum is set to con­tinue in the near term as we relentlessly pursue and execute strategic expansion on new and existing customers and partners.

We are also pleased to report that our strategy to be­come EBITDA profitable after the investment period has been successful. The quarterly EBITDA ended positive at MSEK 23, an improvement of MSEK 36 from the corresponding period in 2023. In addition, we delivered a positive cash flow in the quarter. Please note that during the quarter we have aligned our capitalization principles in accordance with peers and market standards. Excluding the effect of capitalization, our positive Q1 EBITDA would be SEK 6 million, hence delivering significant increased profitability as earlier communicated.

Our strategy of robust profitable growth continues, ensuring that our entrepreneurial spirit and ambi­tion remain in sync with sound commercial practic­es and expectations from investors and the market. As we are heading into the new phase of profitable growth and cashflow positive operations we are well positioned with a solid cash balance to fulfill the convertible bond obligations which are not due until 31st December 2027.

The primary drivers of our growth remain the same, i.e. new customers and partners coming onto our core products and services due to heavy product investments, and new revenue growth streams such as AI, stand alone payroll, MRP and payment & debt collection modules which continue to perform and scale impressively. As we look further, the existing growth areas together with our recent acquisition of INBooks Flow & Go and efficient expansion into new markets and verticals yield highly interesting growth potential in the future. INBooks already includes partnerships with close to 200 Swedish accounting firms new to 24SevenOffice, and 24Sev­enOffice is now the only independent Nordic soft­ware where smaller SMEs can start in, but also grow efficiently in terms of both revenues and complex­ity to international impact without changing the ERP and accounting system.

Looking to our Board of Directors and as noted in the summons to our annual general meeting in May, our esteemed long-term Chairman of the Board, Karl-Anders Grønland, has decided to step down after his current term. On behalf of 24SevenOffice, I extend our deepest gratitude to Karl-Anders for his invaluable contributions to the company and its development. Under his guidance from 2009, the company and predecessors have evolved from a fraction of the current size to a formidable presence across the Nordics and North America today.

Ståle Risa, long-term board member and former CEO, has been proposed as new Chairman. Ståle brings strong in-depth knowledge about our organization, market and customer requirements. In addition, our experienced former CFO Truls Kristian Hauger will again step into the role as the CFO for 24SevenOffice Group, effective from May 1st.

In closing, this quarter marks a pivotal point where we celebrate not just a positive full quarter EBITDA and underlying positive cash flow, but also the strategic decisions that have brought us here. The journey con­tinues, and I am confident that with our shared vision and collective effort, 24SevenOffice will reach new heights in the quarters to come.

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 30-04-2024 07:30 CET.