Bambuser Year-end report July 2016 - December 2017
July – December 2017 (July – December 2016)
- Net sales amounted to 2,522 KSEK (2,449)
- Total income amounted to 2,990 KSEK (7,273)
- Operating income was -12,500 KSEK (-490)
- Net income was -23,529 KSEK (-498)
- Earnings per share of -1.55 SEK (-0.05)
- Cash flow from operating activities was -7,287 KSEK (-706)
- Net cash at end of period was 25,207 KSEK (9,538)
July 2016 – December 2017 * 18 months (July 2015 – June 2016 * 12 months)
- Net sales amounted to 8,415 KSEK (5,798)
- Total income amounted to 15,530 KSEK (10,104)
- Operating income was -22,563 KSEK (-3,729)
- Net income was -31,708 KSEK (-2,935)
- Earnings per share of -2.51 SEK (-0.32)
- Cash flow from operating activities was -15,718 KSEK (-547)
- Net cash at end of period was 25,207 KSEK (1,478)
The second half of 2017 has been very challenging for Bambuser. Even though we closed a number of interesting deals, including our first field service contract in the US, revenues have not increased to the extent we anticipated.
We have put our faith in and invested in the strategy outlined during 2014 when we decided refocus our operations from a B2C to a B2B business model in order to increase the company’s revenue potential. The organization has followed the outlined strategy and worked hard towards our core verticals; news media, mobile platforms and field service companies. Our resources have been focused on sales and marketing with increased emphasis on digital marketing. We also decided to build up a sales organization in the important US market.
However, we have not reached the sales targets set at the time. Mostly as a consequence of longer than expected sales cycles, which has been the most challenging aspect of our business. Our products are well received and we have, in fact, close to 200 ongoing discussions across all our verticals, but we have not been able to convert enough prospects into customers in the time frame we envisaged.
We have identified the main reason for the extended sales cycles as mobile live video solutions being a new technology, which only the most visionary companies have embedded in their core businesses up until now. I still believe that mobile live video has the potential to be a disruptive force in many industries, but the technology requires an extensive buy-in from C-level personnel who recognize its competitive advantage.
During the past year, the company has improved the product both in terms of quality and additional features based on customer feedback. In the second half of 2017 we also finalized a full transfer of our platform to Amazon Web Services (AWS), enabling a more cost efficient and scalable operation.
I embarked on Bambuser’s journey in 2011 and have been the CEO since December 2016. I still believe in the company and remain a large shareholder, but as communicated in February I have decided to leave my position. It is time to hand over to a new leadership with relevant experience and new ideas. I will retain my responsibilities until an interim solution or the recruitment of a new CEO is in place.
It has been a pleasure to work with so many talented and ambitious people and with such an exciting technology as mobile live video. I wish Bambuser the best of luck in its future endeavours.
CEO of Bambuser
Important events after end of the year
- The company’s CEO announced his resignation at the end of January
- The company announced the closure of its US sales operations at the end of January
- On January 22nd the Bambuser community was shut down as to focus 100% of the company’s resources on B2B
The interim report is available at https://dist.bambuser.net/static/investor-relations/Bambuser_Year_End_Report_2017.pdf.
This information is information that Bambuser AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was sent for publication, through the agency of the contact persons set out below, on March 7 2018, 08:30 CET.
Ingrid Bojner, Chairman of the Board
Mobile: +46 (0)705 696 490
Hans Eriksson, CEO
Mobile: +46 (0)768 822 502
Bambuser is a Swedish software company that offers B2B solutions for live video. Since 2007, the Company has developed a platform for interactive live video broadcasts enabling live video streaming from mobile phones and web cams to the Internet. The breakthrough occurred in 2010, when the Company's service was used to report the unrest in Egypt during the parliamentary elections. The following year, videos were produced via Bambuser and used in several television broadcasts throughout the world during the Arab Spring. Today, Bambuser’s service is installed in more than 50 million phones and has over the years reached 100s of millions of news consumers through companies like CNN, BBC, Al Jazeera, SkyNews, etc. Since 2014, Bambuser has chosen to focus on B2B, Business-to-Business, to increase the spread of the company's products and strengthen its long-term revenue potential. Among the customers are companies as Associated Press, Aftonbladet, Schibsted, NRK and Vinculums. Bambuser is listed on Nasdaq First North and the company's certified adviser is Västra Hamnen Corporate Finance AB.