DIVIO TECHNOLOGIES AB (PUBL)YEAR-END REPORT H2 2020- DIVIO GROWS MRR WITH 55% AND REDUCED COST RUN RATE BY OVER 50%
2020 has been a fantastic year for Divio Technologies AB (publ) with an MRR increased by 55% during the period and a further 30% since the beginning of 2021. Combined with a reduction of the cost run rate by more than 50% puts Divio in a strong position for growth.
FRI, MAR 05, 2021 09:00 CET
Due to the end year report, Divio Technologies will broadcast a presentation via Zoom on Wednesday 10/3 at 10:00 where CEO Jon Levin will present the report, viewers will also have the opportunity to ask questions via a chat. A link to the broadcast will be distribuated via a press release and on www.divio.com.
Summary of the year-end report
For the period 2020-07-01-2020-12-31
- MRR increased by 55% to: 1,177 ( 758)
- Total revenue: 8,095 (8,250) KSEK
- Operating loss: -7,118 (-10,891) KSEK
- Earnings before tax: -8,388 (-9,471) KSEK
- Earnings per share: -0,22 (-0,35)
- Cash and cash equivalents: 1,095 (5,948)
Total revenue: 17,897 (16,354) KSEK
- Operating loss: -17,056 (-21,033) KSEK
- Earnings before tax: -18,518 (-19,578) KSEK
- Cash flow from operating activities: -11,544 (-21,238) KSEK
- Earnings per share: -0,29 (-0,45)
Significant events during the period
Completed a direct issue of 5 MSEK in July 2020
- Initiated significant cost reductions, which will come into full effect during 2021
- Won two additional bank customers: UBS and Kendris
- Strengthened the board with the addition of a new member: Niklas Koresaar, CFO of Flexion Mobile
- Our support was ranked No.1 among 360 companies on NASDAQ First North
- The result was affected by an unrealized currency loss of -1,462 (1,455) KSEK in 2020; when revaluing the intra company loan from the parent company Divio Technologies AB to Divio AG
Important events after the period
4.7 MSEK in client cash advances received in January 2021
- MRR increased by 30% after the period until end February
- Started to build for further growth by expanding the sales team with two new headcounts
- Recruited a new Head of Finance
2020 has been a fantastic and very productive year for Divio. We reduced costs, tuned the organisation and won some large and strategically important customers. To date, we have increased our MRR inventory by over 100% since 2019. We are also proud to announce that we since February have a balanced operating profit run rate. We are currently in a strong position to grow the company.
We have seen a significant increase in subscriptions sold, especially during the last quarter of the year. This is a direct result of dedicated sales work throughout the year. The sales team managed to win some prestigious and strategically significant new customers, including UBS and Kendris. Two customers who have already increased their expenses by a couple of thousand percent. In addition, we won several important smaller customers and brought many new partners onboard.
I am very proud of how we managed to increase our business with Fidelity International by more than 40%. This is further proof of customers’ appreciation of our solutions, our work, and our team’s ability. We need to continue raising awareness of Divio, ensuring that more companies get to experience the benefits we can deliver.
While our result for the year is much stronger than for the previous year, it was negatively affected by a currency loss of SEK 3 million. To address this among other tasks, we recruited a new Head of Finance to develop our approach to currency management.
During the year, we conducted a complete overhaul of our organisation and cost structure. This slowed growth in the short term but created a much stronger base for future growth. I am very pleased with how this was executed – we are already seeing the results of our rigorous measures. Now we have a small team but with an incredible output both in terms of product and business.
Divio is now in a much stronger financial position. We have a well-defined product strategy and plan and have improved our sales process. In addition, we are now much more successful in winning new customers. Our streamlined sales team was able to increase sales in 2020, and we have been successful in growing existing customers. Now is the perfect time to start our growth journey, and we have already begun recruiting senior sales representatives with the right experience and networks.
To further increase the efficiency of resource allocation, we created the Django CMS Association. The association will now lead the maintenance and further development of Django CMS, which is a widely popular open-source tool originally developed by Divio. This will enable us to focus on the Divio platform and other Django CMS activists will help contribute to improve the platform via the association.
Looking back on the year, I am delighted to see the results of hard work and the enormous commitment of our people. The engineering team has made some significant improvements to the platform, while handling a growing number of customers with complex needs. And our support team was ranked No.1 among 360 companies listed on NASDAQ First North for reliability, clarity of purpose and open communication.
The COVID-19 pandemic has of course affected everyone. One of our responses during 2020 was to provide pro bono help to a Swiss canton in building a tool to collect data on the spread of COVID-19. The project made a difference in management of the virus, as well as demonstrating how fast a web application can be designed, built and deployed with the Divio platform.
Despite the special circumstances, 2020 was an excellent year overall for Divio. My job has been greatly aided by our strong and dedicated team and our outstanding platform. I am convinced that we will continue to take huge steps in 2021.
Jon Levin CEO
Divio Technologies AB (publ) is obligated to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 2020-01-14 at 16:25.
For further information about Divio Technologies, please visit www.divio.com or contact CEO Jon Levin: email@example.com, +46 732 44 70 66
The company’s Certified Adviser is FNCA Sweden AB: +46(0)8-528 00 399, firstname.lastname@example.org
About Divio Technologies
Divio Technologies AB (Publ) is the Cloud Management Software development group behind the Divio platform, which simplifies cloud hosting, deployment and development via a PaaS solution. The platform allows enterprises to reduce costs, time to market and the burden on employees, as well as decreasing dependency on cloud vendors.