Interim report Q2, 2023

Second quarter

• Net sales amounted to SEK 4.4 (21.8*) million
• EBITDA amounted to SEK -1.8 (-0.4) million
• EBIT amounted to SEK -31.4** (-16.9) million
• EBT amounted to SEK -32.2 (-20.0) million

• SpectrumOne’s subsidiary, Cemron OY, enters into partner agreement with Ideafix Group
• SpectrumOne launches PRISM Sales

*including revenues from the now divested companies Observit AB, Ådata Infosystems, Ampilio AB and the Trigger Company AB
**including share of earnings from our associated company EniroGroup AB.

CEO STATEMENT

Dear shareholders,

We have taken important steps this quarter on our journey to become a leading technology company, helping business accelerate growth through the provision of valuable insights.

We are continuing to strengthen our footprint in the Nordics building the foundation that will support us to expand further.

Our strategic direction continues to be proven correct and I am pleased to report that we do not, as many other businesses, suffer from lowered demand. In fact it is on the contrary as we are experiencing an increased demand for our solutions, mainly driven by the growing demand for insights and digitalization. I can also confirm that we have not witnessed cost cautions effects on our pricing. However, we do observe extended buying processes resulting in longer time to revenue.

Executing on our strategy in these turbulent times, we are of course inclined to balance between speed and caution. This does influence our progress, extending our planned execution but does not affect our tempo, our efforts and our strong focus towards achieving our strategic goals. That’s why I am happy to see how we as an organization have been successful to realize important strategic wins.

Profitable growth

We continue prioritizing profitable growth, meaning profits before growth. For the subsequent three quarters we have been carefully reviewing and consolidating our business, resulting in key activities such as the divestment of Ampilio, in order to focus on our core business. This naturally has had an immediate negative effect on our revenue, and in the second quarter, we have witnessed the full effect. However this was a key and critical action from which we are now much better enabled to only grow our revenue streams.

Having consolidated our business, all operating companies contributes positively to our mission. Further, and more important we are closer to overall profitability than ever. The strategic milestone of reaching profitability in all operating companies this year still remains.

I am therefore thrilled to share that during the foregone quarter we have been successful to grow our sales pipeline both in number of opportunities and in monetary value. Further that the majority of our opportunities are related to our SaaS portfolio of services.

Moving forward we continue to strengthen our marketing and communication activities, attracting and increasing customer leads, further strengthening our brand in order to secure a rapid growth in our SaaS revenues.

PRISM as core

Our decision to base our value proposition around our Prism Cloud platform continues to prove positive. With this platform with its key elements and features, we are enabling business clients to explore their commercial potential and act on it in ways previously unavailable to them.

I am excited to share that the number of customers on Prism analytics is growing, and so are the SaaS revenue from this service. We have gained new customers last quarter on Prism analytics both via our partner network and via direct sales.

Our activities to pilot a version 1, ChatGPT/AI as an integrated component withing the PRISM platform have produced stunning results. This new LLM (Large Language Model) feature connected to our partners high quality data has been demonstrated to our partners with great success. We have already received requests for immediate access as soon as we launch this feature. Hence going forward, we plan to leverage the technology even further and make it an integrated part of the Prism platform and Cloud.

In addition I am happy to be able to report that before summer we launched our first version of Prism sales. The initial response has been very positive, and I am simply thrilled to announce that we already now have several paying customers on this service, the two largest being Österbergs Industrihandel AB and Lundqvist Maskin & Verktyg AB.  The business model is SaaS based and the service has already contributed notably to our Swedish SaaS revenue. In addition, the solution drives our consultancy services in QBIM, enabling us to consult on our own services instead of just consulting on others. I am confident that Prism sales will contribute significantly to our future success.

I am also able to announce that during the end of September we will be launching Prism growth, a survey-based tool linking insights about customer and employee engagement to commercial performance. The tool will be targeted at larger commercial mature organizations, consultancy companies and investors wanting to learn more about a company’s ability to deliver on is growth strategy.  We have already successfully tested the service with one comapny, and plan for yeat a test with another. Like for our other Prism products the business model of Prism growth is SaaS based.

All of our Prism solutions can be delivered as a stand-alone service, however combining those we have a really powerful value proposition, helping businesses to accelerate growth.

Going forward we are truly committed to continue to develop our services and tune our value propositions.

Nordics as our home market

To strengthen our Nordic position, we have made Prism analytics now available in all our operating countries.

Prism sales has so far been launched only in Sweden, however we plan is to launch it shortly in Norway, followed by Finland and then Denmark.

The launch of Prism Growth later this year is initially planned for Norway, followed by a rapid launch in the other Nordic countries.

Partnerships

Partnerships are and continue to be a key and fundamental part of our Go To Market model both in order to secure a solid distribution along with rapid access to both new and existing clients, and complementing and increasing our value propositions. In the foregone quarter we have strengthened and expanded our existing partnerships with Dun & Bradstreet and will continue to do so going forward and I am really happy to see the number of customers growing as a consequence of our joint efforts.

We are now in the final steps to add yet another partnerships. In the summer greetings I referenced this great distribution and partnership opportunity which we expect to fully conclude now in the beginning of September.

As agreements and compliance processes involved with these activities conclude I really look forward to announcing detailed information to the market. I understand that everyone is very excited to hear more. I look forward to providing you all with further information in the coming weeks.

Our ownership in Eniro and Observit

Eniro is continuing on its journey from being a sales- and marketing company to a product company and the listing of Observit on First North was successfully carried out in June last quarter.

I am confident that we are on the right track, pursing our mission of becoming a global technology company, helping businesses to accelerate growth through valuable insight.

I look forward to soon share more strategic wins.

Best regards

Kenneth

For further information contact:

Kenneth Dalquist Valböll CEO
+47 99283 500, 
[email protected]

Certified Adviser:
Aktieinvest FK AB (556072-2596) 
Box 7415 103 91 Stockholm
Telefon: +46 8 506 517 03
[email protected] 
www.aktieinvest.se

SpectrumOne AB (publ) is obligated to publish this information under the EU Market Abuse Regulation. The information was provided by the above contact person's auspices, for publication on August 30, 2023 at 8.30 a.m. CET.

This report is to be found on our webpage (https://spectrumone.com/investor/reports-and-presentations/)

About SpectrumOne AB
SpectrumOne is a leading technology company delivering an advanced Data Management, Analytics & Communications platform suite. Offered in a SaaS online service shipping with rich market data from various professional providers, SpectrumOne provides a unique solution to many leading actors across industry segments in various countries. Enabling clients with fast and easy access to data insight and visualization coupled with powerful search, segmentation, and mapping features. SpectrumOne allows data to be quickly enabled and operationalized, driving activities from customer communication to data science supporting business analysis, strategy, and growth. All of which can be enabled the same day with immediate results. SpectrumOne´s headquarter is based in Stockholm, Sweden, responsible for Nordic sales and strategy, with additional sales and business development located in Norway, Finland and Belgium.  SpectrumOne is listed on Nasdaq First North Growth Market in Stockholm.