Interim report Q4, 2020

Fourth quarter

• Net sales amounted to MSEK 8.4 (0,7)
• EBITDA amounted to MSEK -7.2 (-32.6)
• EBIT amounted to MSEK -15.2 (-34.9) 
• EBT amounted to MSEK –21.2 (-36.9)

• SpectrumOne gets trademark protection in the EU
• Extraordinary General Meeting held on November 4
• Cloud Explorers in Norway, a subsidiary of SpectrumOne, entered into a full partnership agreement with Bisnode
• 95 % of the convertible loan with due date December 30, 2020 was converted into shares at a share price of SEK 3,07
• Chairman, Board member, CEO and other employees subscribe for a total of 4 900 000 new shares in accordance with incentive program
• SpectrumOne acquires 28% of the shares in Eniro and becomes largest shareholder, receives bridge loans of SEK 55 million and intends to carry out a rights issue of up to SEK 160 million

Full year

• Net sales amounted to MSEK 14.8 (9.4) 
• EBITDA amounted to MSEK -15.5 (-56.4)
• EBIT amounted to MSEK -38.6 (-70.1) 
• EBT amounted to MSEK -25.6 (-74.6) 
• Earnings per share before dilutions amounted to SEK –0,13 (-0.37)

Significant events after the reporting period

• SpectrumOne centralizes top management to Sweden with new COO and CSO
• SpectrumOne has closed acquisition of Eniro preference shares
• SpectrumOne changes Certified Adviser

CEO statement
 

THE GOOD AND THE GREAT

Being the leader of one of the most interesting companies in the market and having the experience of working for Big Corp the past ten years has made me realize one important thing - there are a lot of good companies out there!Good companies get the work done when they say they will. Good companies answer when clients reach out to them. Good companies offer solutions when problem come up. Good companies check all those boxes off. But good companies will always be a step behind great companies. The “good” will not seem so good anymore and those “good” companies will seldom or possibly never achieve what a great company does. Great companies are preemptive. Great companies are in touch with their clients and make sure they know the very essence of their pain points. They offer ideas and solutions without being prompted. They pick up the phone and reach out regularly. They provide solutions for problems identified and before problems arise. Great companies are comprised of dedicated individuals whose goal is to ensure their clients are always satisfied with their product or service. Great companies want to change their client’s reality for the better. Good companies assume their clients are happy with their service. Great companies ask, even if that means hearing bad news. Great companies want to hear bad news. The best companies listen and respond to feedback. They learn from it and improve their business.We have developed this company to truly meet the needs in the market, to sincerely pursue a transformation into a data-driven society, a society where almost every action and decision is underpinned by big data, providing potentially huge benefits to individuals as well as corporations. In order to do so we decided to partner with the largest providers of data there are and to make sure our organisation, from floor to board level contains of the best people available.

MAJOR ACTIONS

The financials

During the past quarter we experienced one of the most pioneering periods of SpectrumOne. We have increased revenue more than tenfold compared to same quarter last year. Same quarter last year was when our journey began. Also, compared to last quarter we have doubled the revenue.

With a determined and steadfast focus since same quarter last year we have

• tenfolded revenue

• maintained gross margins close to 70%.

• significantly improved results

Our promises to the market are clear. We are truly ready to set our mark. That’s a mission, a plan and a promise we will do our very best for every shareholder of this company.

As time went by, we also executed on several hugely important actions. We received our trademark protection in the EU. We brought the former CEO of UC, Anders Hugosson, with us. Hugosson is one of our key player in the business information market, and since he might be the best in the field of business information and business development in the Nordics, there is no one I would rather have supporting us and making sure our goals are reached.

And every member in the board also showed great trust in the company when confidently increasing their shareholding in the company.

Partners and market

Furthermore, we completed a full partnership with Bisnode, thus profoundly increasing our presence and commercial capability in the market. This has not gone unnoticed. Neither with Bisnode nor with us. Our Norwegian and Belgian development teams are working regularly with our partner to enhance, develop and support our partner with onboarding clients. Our best clients have in fact been signed by them. This is groundbreaking. Our implementation of the partner strategy last year when we got rid of our whole sales department was a heavy decision. A decision that turned out to be key for our success. We have now partners that are very familiar with our platform, partners that act in our behalf on the market and that sign clients for us.

As stated earlier, with a market in Europe worth SEK 300-400 billion (according to report “Martech: 2020 and beyond” from business advisory firm BDO), I estimate that the value of our partner agreements amounts to SEK 150–200 million in revenue in the long term. With a maintained gross margin of close to 70% in the group, this of course will mean a great deal to SpectrumOne and our shareholders. It’s for a reason we have invested a lot of time to get these agreements.

The cherry on the cake is even sweeter though. Our current partner agreements do not limit us to further seek and sign agreement with other potential great partners.  

Qbim and Trafikportalen

As communicated earlier we have a set plan of separating and divesting the software of Trafikportalen from Qbims portfolio. This is an ongoing process, and we are in continuous talks with potential takers of this opportunity. In this situation, it can actually be said that it is to our advantage that the process takes some time. We know what we have, and we know the potential for our shareholders. We aim to do what´s best for you.

Furthermore, Trafikportalen is experiencing some really positive successes with several county administrative boards across Sweden and Vinnova, Sweden´s innovation agency, with which we are in a fund-raising process are showing great interest in the platform.

Business Sweden, commissioned by the Government and the Swedish industry, has also noticed this unique Swedish innovative software for public transportation and Qbim is to present the platform to elaborate on how Business Sweden could support Qbim in expanding and launching Trafikportalen internationally. A strong and hugely motivating proof-of-concept in what we believe.

Eniro

Furthermore, we acquired 28% of the shares in Eniro and thus became the single largest shareholder. Eniro is a leading actor within information and online traffic. At SpectrumOne, on the other hand, we have a leading analytics software and are experts in standardization, automation and simplicity. This will eventually be a great win-win for both of the companies. Information is the resource of the future and combined with our software I am convinced the two companies will be a perfect match second to none.

What we are aiming for with this holding is to have a profitable cooperation that is highly favorable for both parties. SpectrumOne is aming at growth with the best partners there are and Eniro is striving to truly becoming a SaaS-company. This collaboration should lead to both companies’ market cap increases. More on that as the process progresses.

Sales and marketing

As a scale-up company within the Martech industry we have learned to listen, adapt and adjust our offerings to meet with the needs and requirements in the market. This is key in order to truly make a difference and to make sure our presence is relevant and needed. As a customer-centric company we have continued and are continuing  to develop our business strategies and  modify our approach to make the largest reach possible. With this approach we have continued to sign clients and made additional sales to existing clients.

DIGITAL GROWTH – WITH GOOGLE

To make sure we keep the exponential growth in the future we are, as mentioned in previous communications, looking into the potential of teaming up with the world’s largest digital tech-company - Google.com. We are in a dialogue with the tech company on how to execute the perfect partnership. A partnership with Google would support us with the:

• The strategic planning, competitive and industry analysis

• Building of digital campaigns and launching
• Creating and monitoring campaign reports
• Measurement and tag implementation

Additionally, becoming a team with Google would further give us access to exclusive events and beta products.

With a partnership with Google we would be able to address mainly four important KPI:s.

1. We would make sure to grow loyalty with current customers

2. We would have yet another channel where actions are driven
3. We would increase customers´consideration of choosing us
4. We would make sure the awareness is where it supposed to be

To secure exponentially increased customer inflow, financial growth and increased shareholder value this will be tremendous. A partnership would of course also mean increased presence on the market and therefore a new channel for a massive customer flow. Having attention of Google is a very rare luxury.

We have an ongoing dialogue and I look forward to communicating the final conclusion of the outcome.

AND SOMETHING ABOUT PRISM

The platform configuration facilities introduced in 2020 has proven to pay off. The ability for our partners to fully configure the platform by themselves has enabled them to be totally autonomous: from presales meetings, to sign up deals, setup the platform down to user training has been a success.

Since July 2020, Prism has continued to receive continuous software updates every two weeks. This agility has proven to create a strong dynamic around our existing and new users where the software is evolving in line with the feedbacks we are receiving.

 This has resulted in a 300% increase in the number of Prism users since August 1^st with minimal involvement from our product support team. During the next quarters we will continue our customer centric approach to development and at the same time focus on paid development.

 In order to support the exponential growth, the main development priorities have been articulated around 7 topics:

1. Manageability

 As a continuation of enabling our partners to manage Prism independently, we have continued to improve the Prism platform configuration possibilities:

• all platform configurations can be setup from Prisms own user screens.

• Prism now supports global management of customer with subbranches like franchises, offices or shops. This feature on its own represent access to extremely valuable customers who need global management. Also offering support for international clients across regions. 

Together with our partners we are now training their onboarding and support teams to make them self-serviced. This process not only support existing partners, but also make the foundation for new partners along with scalability into new markets.

2. Pre-sales support

Our and partner sales activities are now supported with demonstration datasets for different industries. It's made possible for sales to give access to Prism in a test mode. This along with initial SaaS agreement that rolls immediately into an ongoing format accelerates sales and onboarding. In order to simplify offer creations, we have created an online tool for salespeople and partners to quote and print a proposal based on the customer needs and options. All Prism platform prices are configured and adjustable allowing for tailoring and adaption to new industries, partners and markets.

 More than 10 new partner sales representatives have received sales training during the last quarter of 2020.

3. Useability

 The entire user interface has been unified to provide a consistent look and feeling everywhere. We have introduced a new theme concept that also allows to optionally brand Prism with different colours and images. This is particularly important for some of our bigger partners.

 In addition, we have completed full coverage of online documentation of Prism. This documentation is lifting up Prism to a very high professional product and is necessary to scale as a self-service product with low support costs.

4. Scalability

 As an anticipation of user growth, we have continued investing in the platform scalability:

• several security and scalability tests have been conducted

• many scripted acceptance tests have been designed to guarantee quality
• the infrastructure has been updated with a monitoring tool tracing continuously the platform usage and potential anomalies
• several core technologies have been updated to their latest release
• parallel data extraction is now possible at scale with the split of Prism export as a separate module. That enables our customers to buy data extract and get them delivered in the instant without waiting.
• Functionality has been introduced to greater support a high volume of concurrent clients, users and sub organizations.

5. Stability and new features

 In response to our customer demands and use cases, we have implemented additional features:

• new data visualisation, including KPI widget and heatmaps to show customer distribution on the map

• new quarantine filters with flexible sliders
• ability to preview an export prior to buying it

We have created a first level support that can deal with user feedbacks immediately and interactively, supporting greater scales and the timely resolution of issues raised. 

6. Reporting

 With the dramatic increase of clients and users, detailed usage and activity reporting within Prism has become essential both for us and our new partners. We have invested in 3 classes of reports:

• Platform activity reports: The Prism team and partner managers are now receiving automatic reports detailing platform usage. This allows for pro-active follow up of both customers and partners

• Income and billing reports: producing automatically monthly billing reports that list per customer, per user all chargeable activity around data usage, activities created, data exports done based on the pricing plan in place. This simplifies sending accurate invoices to customers and opening up opportunities now to introduce clients of varied sizes.

• Platform operational reports: designed for the developer and support team. If any technical issues arise from the platform, the logs are aggregated and transmitted automatically to all developers every day so that actions can be taken immediately. 

7. Swedish market

 In order to support expansion in the Swedish market, we have completed the loading into Prism of reference data around administrative boundaries (cities, postal codes, municipalities, counties) and loaded corresponding shapes for the map. We are also completing the language translations for Swedish and added support for loading customer data. 

Our Swedish subsidiary BizWell has now already implemented Prism with immediate benefits as their list management tool and we will continue to adapt Prism to the Swedish market. Prism is an international platform, and we experience that adaption to each market is realized rapidly.

We have now reached a significant milestone that through a large number of client cases with a much larger number of users, coupled with close interaction with our partners, we understand and experience the first-hand needs from the market. We truly have a leading and unique platform and solution that closely matches and meets the needs of the market. We are experiencing an acceleration in scale and onboarding of clients and are now able to reach and dominate in key market segments such as utilities and finance, were as historically we had purely focused on retail. These are exciting times for the Prism platform and SpectrumOne.

As I have written in my bio on twitter, we are ready to set our mark in Martech Europe. That is a mission, a plan and a promise to continue developing go-to-market capacities, enhance and adapt our business models and improve every aspect of our companys´  commercialization and growth potentials.

I am proud of and done with 2020, now let's move on to 2021, THE year for SpectrumOne!                           

STOCKHOLM, FEB 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.se 
www.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 February 17, 2020 at 08.40 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 Oslo, Norway.  SpectrumOne is listed on Nasdaq First North Growth Market in Stockholm. www.spectrumone.com