Sinch announces preliminary results and goodwill impairment related to the third quarter 2022
Stockholm, Sweden – October 20, 2022 – Sinch AB (publ), a global leader in cloud communications and mobile customer engagement, today announces preliminary results for the third quarter 2022 and the outcome of its goodwill impairment test. Sinch discloses this information since the company considers it to significantly deviate from current market expectations.
Results
Sinch discloses the following preliminary and non-audited results of the third quarter:
| SEKm | Q3 | Q3 | Jan-sept | Jan-sept | ||
| 2022 | 2021 | 2022 | 2021 | 2021 | R12M | |
| Net sales | 7,196 | 3,938 | 20,361 | 10,970 | 16,177 | 25,568 |
| Gross profit | 2,361 | 896 | 6,394 | 2,585 | 3,933 | 7,742 |
| Gross margin | 33% | 23% | 31% | 24% | 24% | 30% |
| EBITDA | 808 | 157 | 1,984 | 501 | 831 | 2,314 |
| EBITDA margin | 11% | 4% | 10% | 5% | 5% | 9% |
| Adjusted EBITDA | 901 | 298 | 2,165 | 851 | 1,322 | 2,636 |
| Adjusted EBITDA margin | 13% | 8% | 11% | 8% | 8% | 10% |
Goodwill impairment
Sinch regularly assesses goodwill and has conducted an impairment test when finalizing results for the third quarter. The impairment test has resulted in a total impairment charge of SEK 5,000 million.
The charge relates to Pathwire, a company which was acquired by Sinch in 2021 and which has since been reported as a separate Email segment. This impairment charge will impact Sinch’s third quarter income statement, but does not affect cash flow.
Third quarter report
Sinch is currently in the silent period preceding the third quarter report. The full report will, as previously announced, be disclosed on November 2, 07.30 CET. A webcast will take place 14.00 CET. See investors.sinch.com for more information.
For more information, please contact
Ola Elmeland
Investor Relations Director
Mobile: +46 721 43 34 59
E-mail: investors@sinch.com
Thomas Heath
Chief Strategy Officer & Head of Investor Relations
Mobile: +46 722 45 50 55
E-mail: investors@sinch.com
About Sinch
Sinch’s leading cloud communications platform lets businesses reach everyone on the planet, in seconds or less, through mobile messaging, email, voice and video. More than 150,000 businesses, including many of the world’s largest companies and mobile operators, use Sinch’s advanced technology platform to engage with their customers. Sinch has been profitable and fast-growing since its foundation in 2008. It is headquartered in Stockholm, Sweden, and has local presence in more than 60 countries. Shares are traded at NASDAQ Stockholm: XSTO:SINCH. Visit us at sinch.com.
This information is information that Sinch AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out above, at 19.30 CEST on October 20, 2022.