Oneflow interim report Q1 2023: Executing according to plan in a turbulent market
Press release
12 May 2023
Oneflow publishes its interim report for the first quarter of 2023:
- Net sales increased 50% to MSEK 21.7 (14.5). Share of Net sales outside Sweden increased to 28% (22) with paying users in 32 countries.
- EBIT was MSEK -23.5 (-11.0), with an EBIT margin of -108% (-75).
- Basic earnings per share amounted to SEK -0.91 (-0.64) and diluted to SEK -0.91 (-0.64).
- Total ARR YoY increased 52% to MSEK 99.6 (65.7).
- Net New ARR for the first quarter increased 4% to MSEK 9.0 (8.6).
- Total cash and cash equivalents amounted to MSEK 188,035 (24,296).
Anders Hamnes, CEO and Founder of Oneflow, comments:
“Our total ARR increased 52% year-over-year to MSEK 99.6, representing an increase of MSEK 9.0 during the first quarter. Considering a turbulent market with a degree of uncertainty, we have executed well in our way to reach our long term objectives.
The third quarter of last year showed early signs of a souring climate, recession came with full force during the fourth quarter, and the sentiment continued to be tough in the first quarter of this year with the same magnitude as the previous quarter, not more, not less. While we're executing according to plan, we feel the impact of market delays.
We are gaining traction in sales from our newly established subsidiaries in France, the Netherlands and the UK. We continue to invest in our global expansion, currently counting customers in 32 countries, and share of sales outside Sweden at 28% in the first quarter.
Churn has been higher than usual during the last two quarters, but we don‘t lose more to competition. However, the churn has declined somewhat during the past few months, and we believe that the worst is over, and the churn will gradually decline and finally stabilize.
In times when companies put greater focus on cost reductions, Oneflow is strongly positioned to offer a critical product, sold at a low cost with a high return-on-investment, to automate contract workflows from creation to archive. Our platform integrations and scalability further reduce operational costs while maximizing the investments companies already made in their existing systems.
Our solid balance sheet means that we have the financial strength to go full force even during the storm. The current recession is painful for most companies, but to us, it's also an opportunity. This, combined with a highly competent team, very strong company culture, a scalable product that’s top notch in the market space delivering to the most demanding customers, put Oneflow on a rock solid position.
Considering the global financial situation, we believe in a somewhat more cautious expansion approach until the economy has shown clear signs of recovery. We therefore adjust our financial targets to an ARR of MSEK 600 by the end of 2027, and an EBIT margin of 20% in the same year. While the future is hard to predict, we will never jeopardize our strong financial position.”
Oneflow’s report presentation webinar
Anders Hamnes, CEO and Founder of Oneflow, and Natalie Jelveh, CFO of Oneflow, will present the report and answer questions in a webinar at 10:00 CET on the same day. The presentation will be held in English.
To join the conference, please register here: https://oneflow.zoom.us/webinar/register/WN_dQFBrscMRlW71A6d9i45cQ
Report and presentation will be available for download on our website here: https://oneflow.com/ir/investors/financial-reports/
This information is such information that Oneflow AB (publ) is obligated to make public according to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 12 May 2023 at 8:00 CET.
For further information, please contact:
Anders Hamnes, CEO and Founder
Mobile: +46 76 788 50 76
Email: anders.hamnes@oneflow.com
Certified Adviser is FNCA Sweden AB.
About Oneflow
Oneflow develops, sells, and implements digital contract management and automation systems. Oneflow believes that contract processing today, both in Europe and globally, is characterized by manual and paper or file-based contract management, resulting in a high degree of time and resource-intensive administrative work and high exposure to human errors. With Oneflow, companies can handle all types of contracts before, during, and after signing digitally within one single platform, automating and streamlining the entire contract management process from start to finish.