Interim report Q3, 2021
Third quarter 2021
- Net sales amounted to MSEK 16.2 (4.3)
- EBITDA* amounted to MSEK 1,7 (-1.6)
- EBIT amounted to MSEK -17.3 (-10.1)
- EBT amounted to MSEK -18.7 (-10.1)
- Earnings per share before dilutions amounted to -0.06 (-0.05)
- SpectrumOne acquires the mobile surveillance company Observit to be merged with SpectrumOne’s business Trafikportalen with the intention to list and distribute the new company to the shareholders
- SpectrumOne has closed acquisition of Observit AB
Significant events after the reporting period
- Preliminary figures show a positive EBITDA-result amounting to SEK 700,000 and a positive cash flow for the month of September
*including share of earnings from our associated company EniroGroup AB in depriciations and amortizations
CEO statement
BEST QUARTER EVER
We hereby present the best quarter ever in the history of SpectrumOne, and it´s truly an exciting journey we are on. All the evidence indicates that we will continue to go from strength to strength. Despite a usually weak quarter, we show that our numbers keep growing - we are doing great! We saw a strong demand in this quarter, especially within our Martech vertical. The demand is driven by the transition we foresaw and that is now turning into a reality and makes business for us. A good summary of the quarter would be; strong organic growth and an increasing and strong result. Thereto a solid pipe of clients in larger segments, clients that we could not have reached earlier are now reaching out to us.
By making sure we are keeping a high level of activities every day of the week we now have created a sales team where clients are approaching us rather than us reaching out to clients. SpectrumOne is exceeding the expectations of the financial analysts following us with the figures we are presenting for this quarter. We are for the first ever time cash flow positive on group level for a whole quarter - a transformative move into a more stable financial future and an important milestone.
In addition, we deliver a gross profit of approximately 75%, showing our business model is lucrative and assuring our growth to be highly profitable.
The depreciations related to the Eniro shares of course affects our overall statements, but those figures don’t affect our cashflow and are stable and predictable.
GROWING PRISM
Someone once said, “Necessity is the mother of all invention.” I would add “but only simplicity can turn that innovation into a success”. And simplicity is in the very code of Prism. The trends in processing and data automation are very clear. Massive data storage and processing are readily available in the cloud. With increasing amounts of data, the ability to create smart and automated data collection services that can easily and quickly adapt to new and changing data sources are required. Cloud computing used to store, analyze, and visualize data has become common and with it, scalable solutions, more and more data can be analysed and used in decision making. Prism is key for the many stakeholders that storage this amount of data to be able to
access, gain insights and visualize it for a data driven decision making.
By recruiting a Nordic Sales Manager for Prism in August, we enhanced our position in the market from only having partner sales channels to also having direct sales channel to truly be able to capitalize on these trends and need in the market. This role is to take on the largest clients of ours while courting our partners to make sure we grow together. We also get increased continuity in expanding the platform with even more data streams. Larger corporation with international presence now has a dedicated Sales manager to guide, introduce and support them in the universe of Prism.
DEVELOPING BUSINESS WITH PRISM
Our business model is divided into three different verticals to fully approach the market. Our Martech department is the marketing agency, with focus on digital, and where we serve mid- to large sized clients in a digital and profitable business model. Within our business intelligence team, we are making sure we have an edge technology in order to help our clients transform their organizations into data driven organisms.
Our heart is Prism. Leading the way within data visualization we are proving we have the best platform for analytics and managing of data for segmentation, washing, marketing and analytics.
With the newly developed Prism Light we can attract and onboard even the smallest clients in the Nordic. This is a great fit for the approximately 500.000 small companies in Sweden and the millions more in the Nordics and Europe.
Summarized, we have created a company capitalizing on the three worst kept secrets for a profitable company - a highly profitable business model, excessive growth and low churn.
WHAT TO EXPECT
We are experiencing a hypergrowth in energy, activities, pace, and growth for our verticals. To give you an idea of the strategy and a timeline we present the activities we have executed on and aiming for in the coming years.
Geographic expansion
- Reopen office in Spain to open a market in its infancy
- Expand in Europe through Dun & Bradstreet’s partnership
- Prism is ready for multi-language and already includes several languages
Establish new partnerships
- Establish distribution partnerships with key industry partners that can;
- deliver Prism to their existing and new clients
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- partner with us and innovate their business with Prism as an enabler of innovation and creation of new products and services
Additional use cases
- Prism has shown its adaptability to new use cases, e.g., smart solutions for properties and thereby touching on the proptech market
Additional services
- Expand offering organically or inorganically to better serve customer using the Prism platform
Continuous organic and inorganic growth
- Extensive list of acquisition targets and proven ability to acquire
- Acquisitions should accelerate the distribution of Prism
CONVINCED ABOUT AMAZON
Founded in 1994, Amazon has grown into the biggest e-commerce marketplace and cloud computing platform worldwide. Amazon as a sales channel differs greatly from Sweden's largest sites Google, Facebook, and Instagram etc. By being both a search engine and a marketplace, Amazon combines the best of both worlds and most visitors both start and end their buying journey on Amazon. Amazon is growing every year and had sales of as much as 386 billion dollars in 2020.
We believe there is great potential within Amazon and hence invested much time and many resources into packaging our solution for our clients for this purpose. This has become a tremendous success for small and larger clients, proving our solution is well fit for a large part of the e-commerce.
Wayne Smith is our latest recruitment within our investment in Amazon. Wayne has trained thousands of people around the world in sales on Amazon, how to open an e-commerce and grow on Amazon by always using the right data in the right time for the right purpose. In 2018, he decided to develop a complete digital solution for how to succeed with sales on Amazon. He has been working in sales and marketing at Amazon for the past 8 years and is a well-known lecturer in the subject and has lectured in London, Las Vegas, and New York.
TRAFIKPORTALEN
September 15, we announced we closed the acquisition of Observit to merge it with Trafikportalen and with the intention of distribute it to our shareholders in the most advantageous way for the company and our shareholders. We started working with the merger, legal issues, and financial plan right after the acquisition. The ambition is for the new company to be made public to gain more shareholders, namely you, and the legal advisors and the auditors are doing their job to get this done.
When this will happen has not yet been announced which is the result of us not yet coming all the way, however the process is ongoing. This is of course an exciting transaction, we are handling, and some important details still to be resolved before finalizing it, and we want to reassure that every shareholder in SpectrumOne still have the opportunity to become an owner of Observit/Trafikportalen by owning shares in SpectrumOne. Nevertheless, I want to reassure all of you we are doing our best to make this shift of value to our shareholder as fast as possible and in the most efficient way.
Let me also once again repeat what we have said earlier - this year is our year! So let us show how 2021 defines the growth of our company.
STOCKHOLM, OCTOBER 2021
HOSNI TEQUE-OMEIRAT
CEO
This report is to be found on our webpage (https://spectrumone.com/investor/reports-and-presentations/)
For further information contact:
Hosni Teque-Omeirat
CEO+46 70 225 18 77
[email protected]
Certified Adviser:
Aktieinvest FK AB (556072-2596)
Box 7415 103 91 Stockholm
Telefon: +46 8 506 517 03
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 October 29, 2021 at 08.30 a.m. CET.
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, Belgium and Spain. SpectrumOne is listed on Nasdaq First North Growth Market in Stockholm.
www.spectrumone.com
