Interim report Q2, 2021

Second quarter

• Net sales amounted to MSEK 14.1 (2.7)
• EBITDA* amounted to MSEK -1.5 (-5.9)
• EBIT amounted to MSEK -21.9 (-8.9) 
• EBT amounted to MSEK -23.8 (12.2**)
• Earnings per share before dilutions amounted to -0.08 (0.13)

• SpectrumOne announces outcome of Rights Issue; 93 % subscription rate and SpectrumOne will receive proceeds amounting to approximately SEK 157 million before costs
• SpectrumOne acquires Ampilio AB to merge with SpectrumOne’s subsidiaries The Trigger Company and BizWell Sweden AB
• SpectrumOne increases its holding in Eniro to 29.5%
• SpectrumOne has appointed the next Nordic sales Director
• CEO Hosni Teque-Omeirat acquires 8 million BTUs in SpectrumOne
• SpectrumOne announces the reopening of sales office in Spain for the subsidiary of Ampilio
• Cecilia Hjertzell was elected as a new member of the Board

*including share of earnings from our associated company EniroGroup AB in depriciations and amortizations

**including profit from participation in associated companies amounting to MSEK 21.4

CEO statement

MARTECH IS BOOMING – AND SPECTRUMONE IS TOO

Being able to sign and release the best quarterly report since joining SpectrumOne encourages me to continue working on and fighting for the galactic plan we once designed in a small office space in central Stockholm two years ago. We have now almost doubled our quarterly revenues, maintained terrific gross margins and increased our pipeline with the best potential clients ever. Things are turning out pretty good.

As we have identified and communicated before, our intention is to grow in the markets we are operating in but with a focused view on the largest markets in Europe. According to marketing and data report conducted by BCG during 2020 United Kingdom is Europe’s leading Martech country by a long way, followed by Germany and then the Netherlands. Norway, our previous home market, on the other hand, showed the largest growth rate; an astounding 97%. We are in the right field of business.

We are aiming to take market shares by partnering and growing with the right vendors in the most developed markets. Since June this year we have offices in five European countries - Spain, Norway, Belgium, Sweden, and Finland - focusing on taking market shares on. With a dedicated data focus and a world class sales process, we know we can win relevant and growing clients. For instance, in our latest office opening in Spain where we now offer our solution for Amazon in Spanish, we have managed to acquire even American clients. Important wins confirming that we made the right decisions.

MAXIMIZE OUR OPPORTUNITIES

The current situation in the Martech industry is largely the same as it was in 2020, with Content and Experience maintaining its position on the top of the Martech Category size and growth charts.

The challenges of marketers and data analysts are mainly the following.

• How to Partner with Teams Across the Business to Enable the Championing of Digital and Data

• Leveraging Data Insights to Drive Higher Conversion and Customer Acquisition Rates Across the Customer Journey

• Powering Highly Targeted Marketing Campaigns through Innovative Analytic Tools and Big Data

• Utilizing Data to Embed Customer Centricity into Integrated Marketing Campaigns

• How Data-Fed Technologies Help Automate Repetitive Tasks and Dramatically Increase the Efficiency

Noticeably, the management of data is an area getting a lot of attention giving us as a data obsessed company an advantage to take the next step with every new client and offer our platform where data and analytics are put first. We are truly operating in our sweet spot.

PRISM IS KEY

Every organization today generates, encounters and attempts to utilize data to operate, make strategic decisions and thus prosper in today’s data driven world. This situation is neither new nor unique to any organization and the most common challenge has been that all organizations continue to drown in even just their own data and are barely scratching the surface of the true potential.

As the workforce transforms into the new tech savvy generation the frustrations grow with a common question being asked “How all of this internal and external data is not readily available when I need it and why cannot I see it, explore it and use it to make better decisions and improve our business” Many of these organizations, for over three decades, have tried to master their data using technologies from various vendors, creating data warehouse solutions and then applying various exploration and visualization tools on top to try and literally drill down into the value.

Every organization we have encountered and worked with have a repeated common statement “We tried for years to solve our data, but the costs increased, the results were slow to materialize and in the end we didn´t really get out what we wanted or hoped for”.

With the combination of our pillars within Prism our clients can maximize their outputs and address the challenges´ mentioned above.

•        Data management

Immediate access to an analytic universe of consumer- and business universe. Schedule or flexibly load multiple data files from virtually any data source without any tech background.     

•        Visualize

Using data-cleansing we are turning your data into smart visualizations usable by business users. It's a fast way to get started and ready to be shared across your organization.

•        Analyze

You will never start from a blank page. Every new segment starts from a template that is activity driven. It always come with good default settings and criteria sets. It's all configurable and tailored to be used for your needs.

•        Segmentation

Schedule data extracts of your segments to target your audience in the preferred channel without any delay.

Prism has proven itself to be an easy to use, yet powerful platform, that is highly visual and very easy for clients to intellectually understand and see the immediate and long-term benefits. The ability for Prism to propel a client immediately into using both internal and external data sets with little effort, literally moves clients overnight into a highly valuable and key position both from an organizational and industrial perspective. The SaaS format, pricing and commitment model allows Prism to be decided and implemented rapidly with low risk to all parties. Prism is offering features only found in high end solutions, coupled with a range of unique features found only in the platform. Prism is a tool for the 21st century and fits perfectly into the market demands and needs or practically every business in the market. SpectrumOne is leading the way for how visualization looks like in the future.                                          

FOCUS AREAS

Even though we now experience the forecasted growth in the group, the nearest future awaits us with some opportunities we need to capitalize on.

•        Our scale of business

Growth is crucial to the long-term survival of a business. It makes it easier to acquire assets, attract new talent and fund investments. It also drives business performance and profit. We aim to grow and scale our business in order to strenthen our position even more.

•        Our branding

Branding is what make s a memorable impression and enable us to grow knowledge. It is a way of distinguishing ourself from the competitors and clarifying what it is we offer that makes us the better choice.

•        Our price

Our pricing is the reflection of everything we do as a business, from our product development all the way down to a link to our website, because we live in a world driven by value - nothing else defines a business and a product more! We believe our pricing should be increased by two or three times given the value we create for our clients. We need to charge what we are worth, and we believe we are on our way to do so.

By including, in our comprehensive people strategy, a well-structured recruiting and selection program, we are aiming at matching the right people to our company. Recruiting the new Nordic Sales Director, a senior business developer highly skilled within tech, information and sales, means a huge deal for us. We now have the best recourses to act on leads, and to truly manifest our platform to every potential client. We have a goal to be the best Martech companyin Europe, given what we have achieved so far, I really think we are on the right track.

Merging of the different business areas will be another key for us to continue to gain from the acquisitions we have completed. Reaching economy of scale makes our profit and efficiency higher, and the synergies within sales and business development a clear advantage to others. We have created a large and unique customer base on which we can deliver a large value and hence become an even more relevant player in those relations making us highly coveted for existing and potential clients. Some of the acquired companies will need more attention and resources than expected, others are by far exceeding our expectations. I am convinced we have the right people onboard to make sure we can capitalize on every acquisition to the fullest and every shareholder proud. 

As communicated earlier, we are in the processes of divesting and distributing Trafikportalen, managing our holdings in Eniro to the very best, strengthening our equity story and signing great partners.

I BELIEVE

Last quarter our chairman and I increased our holdings substantially in the company by fully participating in every share issue. I personally invested almost SEK 10 million, mostly borrowed money. This second quarter I have increased my holding by an additional SEK 12 million by acquiring another 8 million BTU´s adding up to a holding of almost 5% of the company. I have now invested more than SEK 22 million in SpectrumOne. It surely strains my already stressed finances by increasing my borrowing to this level, but I am very much convinced my calculation will add up.

Ahead I foresee us continuing the growth journey we started. We have major partners to sign up and a world-class brand with SpectrumOne to build in order make sure we stay on the right path of becoming the best Martech company in Europe. I once said, 2021 is the year of SpectrumOne. Everything indicates that this will be the case.

Looking forward to seeing you very soon.

STOCKHOLM, AUGUST 2021

HOSNI TEQUE-OMEIRAT

CEO
 

This report is to be found on our webpage (https://spectrumone.com/investor/reports-and-presentations/)

For further information contact:

Hosni Teque-Omeirat 
CEO+46 70 225 18 77 
hosni@spectrumone.com
 

Certified Adviser:
Aktieinvest FK AB (556072-2596)
Box 7415 103 91 Stockholm

Telefon: +46 8 506 517 03

ca@aktieinvest.sewww.aktieinvest.se

SpectrumOne 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 August 26, 2021 at 08.25 a.m. CET.


About SpectrumOne AB

SpectrumOne is a leading technology company delivering an advanced Data Management, Analytics & Communications platform suite. Offered in a SaaS online service shipping with rich market data from various professional providers, SpectrumOne provides a unique solution to many leading actors across industry segments in various countries. Enabling clients with fast and easy access to data insight and visualization coupled with powerful search, segmentation, and mapping features. SpectrumOne allows data to be quickly enabled and operationalized, driving activities from customer communication to data science supporting business analysis, strategy, and growth. All of which can be enabled the same day with immediate results. SpectrumOne´s headquarter is based in Stockholm, Sweden, responsible for Nordic sales and strategy, with additional sales and business development located in Norway, Finland, Belgium and Spain.  SpectrumOne is listed on Nasdaq First North Growth Market in Stockholm.

www.spectrumone.com