Interim report July - September 2018
Third quarter
- Net sales amounted to MSEK 3.2 (13.7)
- EBITDA amounted to MSEK -7.4 (13.7)
- EBIT amounted to MSEK -10.3 (10.7)
- EBT amounted to MSEK -10.4 (4.6)
- Earnings per share before dilutions amounted to SEK -0.23 (0.09)
- Appointed Torkel Johannessen as new CEO
First nine months
- Net sales amounted to MSEK 16.8 (70.5)
- EBITDA amounted to MSEK -15.7 (18.0)
- EBIT amounted to MSEK -23.3 (5.1)
- EBT amounted to MSEK -27.2 (-6.7)
- Earnings per share before dilutions amounted to SEK -0.58 (-0.22)
Significant events after the reporting period
- Online sales launched
- October sales estimated MSEK 2.0
- Extraordinary General Meeting held in November
The comparable 2017-numbers include the divested subsidiaries Vianett and Sendega.
CEO STATEMENT
Preparing the company for the future
My first six weeks in TargetEveryone have been exciting and challenging. During these 40 days we have implemented a new customer centric value chain, made significant changes to the organization, launched our online subscription service, terminated legacy business and devoted much effort to strategy and go-to market planning for our new software platform. The organization is constrained by devoting a lot of time and efforts towards business- and product development of our new platform – Spectrum – whilst at the same time maintaining focus on selling our existing product suite and serving our customers and partners. When we launch our new software platform on December 1st, this will realign the focus of the whole company.
I am disappointed by the financial performance in our last quarters, and have put great effort into addressing major problems to regain momentum. Going forward, I am confident that our whole organization will work effectively to prepare the landing strip for a fantastic new software solution, combined with increasing leverage on our current business.
TargetEveryone going forward
I have spent the first weeks getting a deeper understanding of the operation, and quickly implemented changes across the whole value chain of the company. I have met many of our shareholders to collect their views on our company, talked to a lot of our current and potential customers to understand their needs, visited our partners in Portugal and Scandinavia and our subsidiary in India. I fast-tracked launch of our Online Sales service, and made several changes in the organization to make it more streamlined towards servicing our client´s needs. Going forward it is quite clear to me that TargetEveryone needs to work across three strategic break-through objectives.
Firstly, we will finish the development and launch Spectrum. This is a new software that will combine customer intelligence and market insight with a brand new version of our multichannel distribution solution. It is a game changer. Spectrum will be our primary solution towards enterprise customers, opening up for a completely new price model at up to X10 of where we are now. I have made changes in the organization to make clear responsibilities both regarding sales and product development, and I am happy to see a total change in speed and focus.
Secondly, we will carry on developing the Online Subscription solution that launched October 27th. This service is based on our current product, and has a huge global potential towards SME-customers. As of today, we have global presence with this service. Our only significant expansion cost is advertising; and we will focus investments in the regions and countries where we experience best return.
Thirdly, we will capitalize and grow with our current platform consisting of campaign editor and multichannel distribution software. This will be done both as an integrated part of Spectrum, as well as a stand-alone feature for the customers who prefers that. Our global partner network provides us with a lot of opportunity in this area, as market maturity varies a lot. The key to success is an aligned product suite and stable systems.
Based on our understanding of the market, we will serve both the high and low end. With Spectrum, we will target the enterprise market, focusing on larger customers with a need for market-and customer insight combined with multichannel distribution. With our online subscription service, we will provide an easy to use multichannel distribution solution to any customer across the globe, starting at USD 79 per month + consumption.
Actions taken
The sales for the third quarter were disappointing. As the summer months fall into Q3, this is normally our most challenging quarter but even taking this into account, we performed below par. In October, this trend may have turned around, and we have started Q4 with sales of MSEK 2.0 for the first month. We expect Q4 to carry on with good numbers. After my first weeks, it is clear to me that we have not been working aligned, and that we can make great improvements with right focus and structure. The company has been working on too many different activities, and we still have much legacy after earlier divestments and non-core products, that have taken too much attention. To turn this development, I will continue to take action across the whole value chain of the company.
Besides launching Online sales, I have reorganized the sales, implemented a structured reporting process, and put myself as head of global sales to be in touch with our front line towards the market. We have also renegotiated our partner agreements in Portugal. We have shut down non-core cost generating activities in Sweden, to make our Swedish team fully focused on selling our core products.
At the product side, we have spent much time over the last weeks on streamlining our current product suite. We will remove features that we do not capitalize on, and prioritize the features that the customers really want and are willing to pay for. This will unleash a lot of capacity, working on value-creating activities towards the customers. I expect a few months before we see the result of these adjustments, since we have a back-log that must be delivered as promised.
Spectrum
I am really looking forward to our launch of Spectrum, where we finally implement the technology made possible through our 30% investment in Cloud Explorers last year. Combining customer/market insight with a full suite of multichannel distribution tools is unique and we cannot find many competitors combining these two areas. The customers and partners I have spoken to, confirm this view, which makes me confident in the future. We have already given a demo of its capabilities, available on our web page. We will start to onboard clients carefully in December, to make sure that everything works as we expect, before we do a full rollout during Q1.
We know that the market gives us great tailwind – the Martech market is estimated at $ 125 billion globally, and grows annually up to 30% driven by digital megatrends that disrupts existing marketing channels. We frequently see news that shows us that the investor market has great beliefs in Martech and future revenue streams.
We look forward to launching Spectrum and combine outstanding segmentation with an effective campaign editor, and a precise multichannel distribution in one integrated solution.
Stockholm, Nov 2018
Torkel Johannessen, CEO
A presentation of the second quarter will be available on TargetEveryone´s Investor page at 9.00 a.m. CET: https://www.targeteveryone.com/investors/presentations.php?lang=en&type=present
For further information contact:
Vegard Brattum
CFO
+47 977 00 338
vegard@targeteveryone.com
Certified Adviser:
Mangold Fondkommission AB (556585-1267)
Box 55 691 102 15 Stockholm
Telefon: +46 8 503 015 50
www.mangold.se
TargetEveryone AB (publ) is obligated to publish this information under the EU Market Abuse Regulation. The information was provided by the above contact person's auspices, for publication on November 14, 2018 at 08.30 a.m. CET.
About TargetEveryone
TargetEveryone is a global MARTECH company, enabling our clients to streamline their 1-1 digital marketing, content and experiences within one SasS online platform. Within our solution, Email marketing, SMS, SMS landing pages, Native App development, proximity marketing, QR codes and mobile payment solutions all converge in our easy to use multichannel distribution system. For small- and medium sized customers the company provides an online subscription solution, whilst we serve larger clients directly or through our partner network. The solution is based on big data to analyze and refine the customers behavior and demands. TargetEveryone has over 3000 clients in more than 92 countries, and has experienced strong growth as marketing investments continues to move from traditional media to digital media. Customers include Nespresso, Coop, Vita, Match, DNB, Krogh Optikk, Cirkel K and Red Cross. TargetEveryone´s headquarter is in Oslo, with branch offices in Sweden, Holland, Portugal, India and USA. TargetEveryone is listed on Nasdaq First North in Stockholm and Merkur Market in Oslo.
www.targeteveryone.com