QUARTERLY REPORT OCTOBER TO DECEMBER 2022

CONTINUED STRONG GROWTH – SAAS ARR GROWTH OF 167% YoY

OCTOBER TO DECEMBER 2022  

• Net sales amounted to 13.0 MSEK (9.8), + 32% 

• Recurring revenues amounted to 12.0 MSEK (8.8), + 36% 

• SaaS ARR amounted to 25.1 MSEK (9.4), +167%  

• SaaS API Call Volumes active clients 13.8 million (2.9), + 373 % 

• Gross margin amounted 64% (72) 

• EBITDA adjusted amounted to -18.8 MSEK (-15.6) 

• Earnings per share amounted to -3.4 SEK (-2.8) 

  JANUARY TO DECEMBER 2022 

• Net sales amounted to 45.7 MSEK (38.9), + 18% 

• Recurring revenues amounted to 40.7 MSEK (30.2), + 35% 

• SaaS ARR amounted to 25.1 MSEK, +167% compared with December 2021  

• SaaS API Call Volumes active clients 13.8 million, + 373% compared with December 2021 

• Gross margin amounted to 65% (70) 

• EBITDA adjusted amounted to -78.0 MSEK (-58.5) 

• Earnings per share amounted to -13.0 SEK (-10.6) 

EVENTS DURING THE QUARTER 

• Rights issue announced providing the company with 96 MSEK in February 2023 

• Financial targets announced to clarify business potential and future KPIs 

• Announcement that customer o2 Telefónica’s Virtual Assistant handles + 1 million conversations per month 

• New partnership with Neudesic, an IBM owned US based IT services company with extensive Microsoft competence 

• 4 renewal SaaS agreement with GrapeTree, Skoda, Hellofresh and Scania 

• 2 renewal agreements with an Italian bank and US TIAA 

• First project gone live with one of the largest healthcare providers in the world 

• New US Patent for Network of Knowledge Using a Common Communication Protocol 

EVENTS AFTER THE QUARTER  

• Successfully closed rights issue providing the company with 96 MSEK 

• Renegotiated 250 MSEK PIK credit facility – a 4-year maturity and an interest cost of 4% p.a.  

• New partnership with Accelerate Venture Holdings (AVH), AVH to use Teneo to build outbound calling capabilities  

• New partnership with Valcon, a leading European consultancy services company 

• ChatGPT access granted to Artificial Solutions through Azure Cognitive Services 

• Launch of OpenQuestion, a new Voice and Conversational IVR Solution  

• Company unveils rebranding and new website, Teneo.ai 

• ISO 27001 certification 

• Fredrik Oweson resigned as board member  

KEY FIGURES (FOR DEFINITIONS PLEASE SEE PAGE 18)  

	OCT–DEC 2022	OCT–DEC 2021	JAN-DEC 2022	JAN-DEC 2021
Net sales (MSEK)	13.0	9.8	45.7	38.9
Recurring revenues (MSEK)	12.0	8.8	40.7	30.2
SaaS ARR (MSEK)	25.1	9.4	25.1	9.4
SaaS API Call Volumes (Million)	13.8	3.0	13.8	3.0
Gross margin %	64%	72%	65%	70%
EBITDA Adjusted (MSEK)	-18.8	-15.6	-78.0	-58.5
Earnings per share, SEK	-3.4	-2.8	-13.0	-10.6
Cash flow from operating activities before financial items and taxation (MSEK)	-17.3	-17.4	-77.9	-38.2

CEO STATEMENT 

Dear shareholders, colleagues, customers, and partners: 

The fourth quarter 2022 was yet another strong growth quarter for ASAI. Our technology has its roots in the early 2000´s. It has been developed and finetuned for the time we are in now. At the end of 2022 two important world events happened that changed the market for our solution. Cost became important to companies and our solution enables large cost-savings. And at the same time FOMO hit the executive suite. FOMO in Artificial Intelligence. Fear Of Missing Out? On what? With the launch of ChatGPT from OpenAI the experimentation in AI has come to an end and managers are now demanding use of AI to provide business value. And Controllable AI which we provide will become an important part of how companies use these new technologies. During 2021 and 2022 we have been rebuilding our SaaS platform to make it easier to leverage different AI services in the Conversational AI universe to build a great customer facing experience. Our SaaS solution today uses all the Microsoft Cognitive Services like GPT 3.5 (the technology behind ChatGPT) and CLU and in fact we became Microsoft ISV of the year 2022 with this integration. We make it faster, controllable and scalable to use AI in interacting with humans.  

To drive even more use of Teneo, we have launched a solution that 80% of all Enterprise customers need – OpenQuestion. OpenQuestion makes calling a contact center for support a pleasant experience since it replaces the traditionally frustrating keypad or keyword navigation with a simple proposition: Just ask the customers what they need help with and OpenQuestion routes to the right agent every time. What was not possible before, replacing an old IVR, can now be put in place in 90 days with Open Question and Teneo thanks to our new architecture. This solution will also have a lower Customer Acquisition Cost so that we can bring in more new customers with less cost. 

At the same time to make it easier for customers we have moved all our Product information to Teneo.ai. Our SaaS Platform’s name is Teneo and this is the name our customers know. All Investor Related information remains on https://www.investors.artificial-solutions.com 

The rest of my CEO statement was written by the GPT 3.5 module in Azure with prompts from Teneo: 

I am thrilled to report our company's impressive performance in Q4 2022, marked by significant revenue growth, successful capital raising, and key partnerships that will drive our continued success. 

Our total net sales for the year reached 45.7 MSEK, representing an 18% increase from the previous year, driven by the efficiency of our SaaS business model, which saw a remarkable growth in SaaS API call of 373%.  

Our capital raise, which was announced and concluded in Q1, resulted in an impressive 96 MSEK, enabling us to accelerate our growth plans, expand our product offerings, and create value for our shareholders. 

We are proud to announce a new partnership with Neudesic, an IBM company, which brings new expertise and opportunities to our business. Additionally, our new O2 Telefónica Conversational Agent has already handled over 1 million customer conversations, demonstrating our commitment to delivering innovative solutions to our customers. 

To ensure our future success, we have announced financial targets that will clarify our business potential and future KPIs. We are also excited to welcome Patrik Rosenberg as our new EMEA Vice President, who brings valuable experience and leadership to our team. 

In conclusion, I am extremely proud of our company's accomplishments in Q4 2022, and I am confident that we are well-positioned for continued success in the years to come. 

Thank you for your continued support. 

Per Ottosson, CEO

This disclosure contains information that Artificial Solutions International 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 20-03-2023 07:30 CET.