Interim report, July - September 2024
For Q3 2024 net sales increased by 24% compared to Q3 2023. Consolidated net sales ended at 100,469 (SEK 000s). EBITDA totaled to 17,759 (SEK 000s). Operating profit, EBIT, was -3,417 (SEK 000s). Profit after tax was -13,949 (SEK 000s). Earnings per share was SEK -0.21.
CEO’s comments
Continued strong momentum with exciting growth areas ahead; agreement with KKR on sale of ERP subsidiaries and assets
I am truly excited about today's news regarding 24SevenOffice Group AB has entered into an agreement with KKR—one of the world's largest and most esteemed investment firms—to acquire certain ERP subsidiaries and assets of our company. This is not just a significant milestone for us; it's strong evidence of the exceptional quality of our business and the significant progress we've made over the past few years. Having an industry leader like KKR recognize our value is something the organization should all be immensely proud of. Please note that all relevant information regarding this transaction will be shared separately from our Q3 report.
For the three first quarters of 2024 we continue to notice a significant year-over-year improvement of MSEK 70.9 in revenues and MSEK 93.7 in EBITDA, resulting in total sales of MSEK 305.6 and an EBITDA margin of 19% year to date. As we anticipated, our performance in the last quarter as well exceeded the Rule of 40 standard, again showcasing our scalable business model. We’re also happy that 24SevenOffice persists with being a top organic growth SaaS company in the Nordics, with unit economics among the top tier with an LTV:CAC ratio of 25 and 9 months to recover CAC.
In Q3 2024 alone, we reached MSEK 100.5 in sales, an MSEK 19.3 increase from Q3 last year. As expected, the growth rate has normalized from the extraordinary numbers achieved the last few quarters and we remain confident in the strong momentum we’ve built going forward. We are also pleased to report continued EBITDA profitable growth following our significant investments over the previous years. For Q3 2024, our EBITDA ended at positive MSEK 17.8, an MSEK 24.7 improvement from the same period last year, despite some extraordinary legal costs associated with the transaction and other one-off activities temporarily reducing the profitability.
Another highlight of this period was our 10th annual CloudCamp, where we hosted our largest-ever gathering of partners and customers. This milestone event brought together close to 600 of our partners and customers, together with exciting internal and external presenters, to share and discuss the biggest trends and developments in the industry, as well as the latest advancements and features in our own product. The feedback from CloudCamp was overwhelmingly positive, with all participants confident in our recent developments and affirming the alignment of our growth trajectory with market needs.
Looking ahead, as we have entered into the sale of assets and subsidiaries related to our core ERP offering, the listed company 24SevenOffice Group will endorse a significant commitment and focus towards the expected high-growth areas of Fintech, MRP, CRM and others. For the Fintech space, the expected portfolio includes amongst other the existing debt collection services, the Pay by 24SevenOffice software (formerly Optin Pay) and a strategic partnership with Storebrand. The fintech industry is experiencing rapid growth, and other ERP companies have seen up to 50% of their total revenue coming from fintech services. This trend highlights the substantial revenue potential in this sector. With our existing fintech assets, strategic partnerships, and planned product launches, we are well-positioned to capitalize on this market opportunity.
The Material Resource Planning (MRP) operations encompass 24SevenOffice US Inc., Masterplan ERP Inc., and the MRP business under 24SevenOffice Norway AS. There are very few competitive cloud-based MRP systems in the Nordics, and with the software, infrastructure and partnership agreements already in place, the remaining listed company will have a unique positioning in this market. As manufacturing companies increasingly seek efficient, scalable, and integrated cloud solutions, our MRP offerings are poised to meet this growing demand.
The management and Board are confident that these opportunities will generate significant value for our shareholders. In addition to the remaining software, infrastructure, partner agreements and revenue, additional MSEK 200 in cash will remain in the listed company, after the closing of the transaction. This provides the company with an extraordinary foundation, enabling us to go full steam ahead on these exciting new ventures, already from day one. We have high ambitions for the next part of the journey for the listed company 24SevenOffice Group AB, and we are confident in our ability to realize the inherent value potential, maintaining our position as a top-tier SaaS provider and continuing to deliver robust growth, profitability and shareholder value.
This disclosure contains information that 24SevenOffice Group AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 12-11-2024 08:20 CET.
