Interim report, July - September 2023
In Q3 2023 net sales increased by 33% compared to Q3 2022. Consolidated net sales ended at 81,188 (SEK 000s). EBITDA totaled to -6,882 (SEK 000s). Operating profit, EBIT, was -30,249 (SEK 000s). Profit after tax was -23,725 (SEK 000s). Earnings per share was SEK -0.35.
CEO's comments
Continued strong performance with increased growth; on-track with the profitable growth strategy
24SevenOffice Group AB continues to execute on the profitable growth-oriented strategy. This quarter's results are a clear reflection of the outcomes anticipated from our strategic growth investment strategy, especially given the substantial investments directed towards strengthening our platform, product portfolio and new growth areas. As we look at our current position - recurring revenue surpassing MSEK 300, reaching MSEK 45 ARR for our new growth modules and a continued strong growth rate ahead, 24SevenOffice is confident to reach positive EBITDA by the end of this year and excited to continue on the profitable growth journey in 2024.
The financial results for the third quarter show a particular strong year-on-year growth of 33% to MSEK 81,2 in net sales for 3Q 2023, a MSEK 20,0 increase from 3Q last year. Despite the macro-economic backdrop, 24SevenOffice is continuing to demonstrate strong and robust revenue growth.
While the 3Q EBITDA is still negative, we are pleased with the year-on-year improvement from the corresponding period in 2022. The EBITDA ended negative at MSEK 6,9, which is nearly a 65% improvement from the corresponding period in 2022, and also a MSEK 10,7 improvement from the previous quarter this year. With the strong development in new revenue streams and overall sales pipeline and partner sales we expect the positive trend in revenue and profitability to continue. As an effect, we're confident positive EBITDA will be reached by the end of the year in line with the previous communicated ambition.
In October, we gathered several hundred of our most important customers for our annual Cloud Camp, to share our latest updates from 24SevenOffice, including the recent launches in our accounting platform such as a modernization of the back-end technology, new voucher workflow, crm ledger, payment collection and a stand alone pay-roll module. My key takeaways from this day is that the customers are happy and acknowledge the improvements we have made to our platform and service offering over the last period, and that the direction we are developing the company and our services is a good fit for our market.
In the accounting market landscape, we are observing a notable shift where 24SevenOffice is capturing increased market attention. This shift can be attributed to a synergy of our product enhancements and strategic branding efforts. Our platform has evolved to deliver an improved user experience with increased scalable functionality. Complementing this, our rebranding initiatives this spring, including a new brand identity and a comprehensive revamp of our webpage and technical infrastructure, have led to a surge in both new sales and up-sales. Our sales and marketing performance this quarter has been all time high for this year.
Furthermore, the increased interest from prominent and larger accounting firms across the Nordics is a testament to our platform's capability and appeal. We are particularly proud to announce a significant partnership with Aspia, one of the larger accounting firms in the Nordics. This agreement not only solidifies our market presence but also reinforces our commitment to delivering top-tier accounting solutions in the region.
We’re also pleased to have become a weighted “rule of 40” - company this quarter. With the recurring revenues reaching all time high, a robust growth rate is manifesting, reaching a positive ebitda, and with the average market multiples observed in the market, we believe there is great potential in our company ahead.
In closing, we wish to again 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 with our strong product portfolio. We are looking forward to updating you on the progress we are making in upcoming reports.
This disclosure contains information that 24SevenOffice Scandinavia 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 09-11-2023 08:52 CET.
