Interim report, January - March 2023

Net sales increased by 20.5% year over year. Consolidated net sales ended at 78,738 (SEK 000s). EBITDA totaled -12,280 (SEK 000s). Operating profit, EBIT, was -34,194 (SEK 000s). Profit after tax was -43,508 (SEK 000s). Earnings per share was SEK -0.64.

CEO’s comments

Navigating market uncertainties with moderate growth

As we conclude the first quarter of 2023, 24SevenOffice continues to demonstrate growth in revenues, despite the persistent challenges and uncertainties in the market with increasing costs, inflation, interest rates and ripple effects from the ongoing war in Ukraine. Our resilience and adaptability is continuously being tested, and whilst the profitability has not yet met the expectations we set for ourselves, the initiatives we initiated last year and are reviewing on a continuous basis, is expected to manifest gradually throughout 2023 and convert into increased growth and profitability.

Although we acknowledge the improvement in profitability and are eager to see the outcome of all the changes and improvements we have done in the whole organization, we are still conscious of the current market and development of the geopolitical situation. The financial results for the first quarter show a moderate and continuous growth of 20.5% to MSEK 79 in net sales for 2023, a MSEK 14 increase from last year. The EBITDA ended negative at MSEK 12.

I’m proud of our team that has risen to the occasion and confronted the negative profitability trend last year, focusing on delivering increased value to our customers and shareholders. Our focus remains on achieving profitable growth, and we are still targeting to reach EBITDA break-even in 2023. In pursuit of this goal, the previously mentioned initiatives that were initiated in 2022 to secure a sustainable cost base and drive profitability have started to yield positive signs and we’re expecting this to further increase gradually in the coming quarters. 

One of our recent milestones has been the launch of a completely new brand identity, in addition to a fully revamped web page, technical infrastructure and visual design. The feedback from our customers and partners has been overwhelmingly positive, and we are building on this momentum to create a scalable platform for increased new sales and up-sales, including a more automated customer conversion channel developed with renowned partners such as Try and Superblaise. We are continuing to invest in sales and marketing to maintain and accelererate our growth rate moving forward.

We are also excited to announce several important upcoming product releases planned towards the summer, including a brand new voucher workflow in our accounting platform, significant updates to the crm ledger, payment collection, pay-roll, and the much-anticipated soft-launch of our HRM product. These releases reflect our commitment to innovation and customer satisfaction, and strengthens our core ERP product which accounts for the majority of the revenues. Nonetheless, the new growth areas within AI accounting, pay-roll, MRP, payment reminder & debt collection are consistently growing and becoming increasingly important for revenue streams and creating stickiness within our customer portfolio.

This summer we are welcoming our new CFO, Magnus Grøneng, who brings significant experience and qualities that will contribute to shape the company’s exciting future and will be a valuable asset to our company and executive team as we continue to grow.

Despite the uncertain development of the market with the geopolitical and financial macroeconomic uncertainties, with the increasing default rates observed in the market, we see few signs of a slowdown in our customers’ activity and little impact on our usage-based revenues yet, thus we remain positive in our plan for profitability and growth.

Eirik Aalvik Stranden

CEO

This disclosure contains information that 24SevenOffice Scandinavia 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 04-05-2023 08:00 CET.

For further information please contact:

Eirik Aalvik Stranden, CEO

Tel: +47 247 00 030, eas@24sevenoffice.com

24SevenOffice in brief

24SevenOffice's vision is to empower businesses for the future, through delivering world class cloud based business systems. The business system is module-based, where the modules are provided independently or packaged as complete solutions. For more information see www.24sevenoffice.com