Interim report April - June 2019
- Net sales amounted to MSEK 2.9 (6.1)
- EBITDA before extraordinary costs amounted to MSEK -6.7 (-1.7)
- EBT amounted to MSEK -12.4 (-4.0)
- Earnings per share before dilutions amounted to SEK -0.22 (-0.08)
- MSEK 26.3 right issue completed
- Accumulated cost reductions to a total of approximately 45 %
Significant events after the reporting period
- Hosni Teque-Omeirat appointed as new CEO
As the new CEO of TargetEveryone I will welcome all existing and potential shareholders to a company back on the offensive. After a challenging time, I am now entering a company with a great opportunity to be a real player in an accelerating market. I am both exited and inpatient to use my experience to sign and onboard new customers to our amazing solution SpectrumOne. I have been working with sales for many years and strongly believe that we will succeed in the market going forward. After several cost cuts, we now have a team that is dedicated with clear responsibilities, as we have kept only the people and partners that are vital to our success. This also makes the path to positive cash flow much shorter. I am looking forward to this fall and a fresh start for TargetEveryone!
A great opportunity
I joined TargetEveryone for two reasons – the team and SpectrumOne.
TargetEveryone has been through a very tough process with a lot of cost cuts, restructuring of operations, and termination of loss-making activities with no prospects. The outcome of this process is a much leaner company with only dedicated people left that truly contribute with value-generation to our core business. After evaluating this team, I find this as a key strength that I really believe will secure success going forward.
As a long-term shareholder I have heard much about SpectrumOne, and I admit that I have been disappointed of all the postponements. Thus, it was critical for me, that SpectrumOne was a ready and sustainable product with real opportunity, before I decided to join TargetEveryone. After assessing this carefully, I am now certain that this represent a material and tangible opportunity for us.
Coming out of the restructuring phase, I now see a company back on the offensive. I see a company with a highly skilled team and an amazing product in a high-growth market. All in all, a great opportunity for me, the TEO team, our customers and our shareholders.
Full market attention
In addition to the restructuring process, the biggest challenge to TargetEveryone has been to accelerate the signing of new SpectrumOne customers. The product is new to the market, hence we must find the most efficient way to convince the customers of its excellence. This is TargetEveryone´s ultimate goal going forward.
Both my professional passion and experience is sales and business development. After evaluating the situation, I strongly believe that we quickly can change this. Accordingly, I will put full attention into the sales and go-to market strategy. Considering our short presence in the market, we have managed to build up an impressing pipeline, and I feel sure that we will quickly capitalize on this one, if we approach the customers in the right manner.
I am also happy to see proof of concept through both Nordic and International customers. We have got very satisfying customer testimonial, where Agria Försäkring has had great commercial success with our system so far.
Further cost cuts
TargetEveryone had built up a lot more costs and obligations than the company could carry. Over the last year, this situation has been dramatically changed, and we communicated a 30 % cost cut by the end of spring. By Q2, we have continued this process which now represent an accumulated cost reduction of approximately 45 % compare to the ordinary fixed cost level by the end of last year.
This will gradually take effect during the Fall. The last cost cuts have been downsizing of personnel as a result of the removal of some remaining non-core activities that we were committed to. These cuts will have a positive cash flow effect since these activities generated less revenue than costs. Consequently, our burn-rate is significantly lower and our need for new customers are correspondingly reduced to reach positive cash flow. It is TargetEveryone´s fundamental financial goal to reach positive cash flow as fast as possible and the combination of high income potential and low costs makes this goal closer than ever.
I believe in an open dialogue and transparent information. I am looking forward to communicate both with customers, partners and investors, and it is my goal to increase the frequency and transparency both through vlogs, newsletters, meetings and presentations. We will be clear about our market goals, and it is my and TargetEveryone´s obligation to keep these promises.
Stockholm, August 2019
For further information contact:
+47 977 00 338
Mangold Fondkommission AB (556585-1267)
Box 55 691 102 15 Stockholm
Telefon: +46 8 503 015 50
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 August 20, 2019 at 07.30 a.m. CET.
TargetEveryone is a global MARTECH company, enabling our clients to streamline their 1-1 digital marketing, content and experiences within one SaaS online platform. The company´s strategy is to approach both the enterprise segment and the SME-segment with two different platforms that are based on the same technology, but with different modules and interfaces. Our unique solution makes marketeers able to easily target exactly the customers they want, and communicate with them in the channels they prefer, to maximize ROI. Our clients can easily segment their customers based on CRM data, market data and transactional data. Further, they can use a campaign editor to quickly build campaigns, and distribute these through our multichannel distribution system either by Email, SMS or SMS landing pages. The enterprise customers are served with our new platform SpectrumOne, combining market analysis, customer segmentation and communication tools, while the SME-customers are provided an online subscription solution through Targeteveryone.com. Both solutions are based on big data to analyze and refine the customers behavior and demands. TargetEveryone´s headquarter is in Oslo, with branch offices in Sweden, Holland and USA. TargetEveryone is listed on Nasdaq First North in Stockholm and Merkur Market in Oslo.