July - September 2024 (compared to the same period last year, Upsales group)
- Net sales decreased by 0.9% to MSEK 35.7 (36.0)
- Annual recurring revenue (ARR) at the end of the quarter was MSEK 138.4, a change of -2.0% during the last 12 months
- ARR increased by MSEK 0.8 during the quarter
- EBITDA amounted to MSEK 11.0 (12.2)
- EBITDA margin was 30.8% (33.9%)
- Operating profit (EBIT) amounted to MSEK 8.8 (10.1)
- Net income amounted to MSEK 7.0 (8.0)
- Cash flow from operating activities amounted to MSEK -1.9 (1.8)
January - September 2024 (compared to the same period last year, Upsales group)
- Net sales decreased by 0.6% to MSEK 108.3 (108.9)
- EBITDA amounted to MSEK 26.4 (33.5)
- EBITDA margin was 24.3% (30.7%)
- Operating profit (EBIT) amounted to MSEK 19.7 (27.3)
- Net income amounted to MSEK 15.8 (21.8)
- Cash flow from operating activities amounted to 9.9 MSEK (22.5)
CEO COMMENT
In Q3, Annual Recurring Revenue (ARR) amounted to MSEK 138.4, an increase of MSEK 0.8 during the quarter. Compared to the same period last year, net sales decreased by 0.9% to MSEK 35.7 (36.0). EBITDA amounted to MSEK 11.0 (12.2), with a margin of 30.8% (33.9%). Operating profit (EBIT) was MSEK 8.8 (10.1), and cash flow from operating activities was MSEK -1.9 (1.8).
For the second quarter in a row, we are reporting positive Annual Recurring Revenue (ARR) growth, although still at a slow pace. Our laser focus remains on two critical areas: being customer-centric and expanding our sales capacity. We’ve seen a decrease in contract cancellations year over year, achieved more win-backs, and observed overall improved customer satisfaction. These positive trends indicate that our strategy is effectively retaining customers and facilitating future growth. Our sales organisation continues to grow, enhancing our capability to increase ARR. We have an ambitious hiring plan in place to build a stronger sales team that can capitalise on market opportunities and drive sustained growth.
In Q3, we introduced several key enhancements to our product offerings:
• Upsales AI: We’re excited about the upcoming launch of several AI-related features. These innovations have the potential to drive significant improvements for our customers, keeping us at the forefront of technological advancement in our industry. A big part of the work done by sales and marketing professionals on a daily basis are excellent use cases for automation using AI. The features we’re building now have the potential to radically improve productivity for users of Upsales, helping our clients become more efficient and effective.
• Customer Support: We’ve added more features to our service and support module, effectively closing the loop between sales and after-sales for our customers. This part of the platform enables our clients to manage the entire customer lifecycle more efficiently. It also significantly expands our total addressable market, providing us with more potential customers to engage.
• Data Privacy Leadership: GDPR and regulatory concerns continue to be significant differentiators for Upsales. Customers who prioritise data privacy recognize the value of our commitment to regulatory compliance with our Swedish cloud offering.
All these enhancements help us solve more problems for our customers, which in turn drives an increase in average deal size.
Reflecting on our progress, I consider Upsales to be a much stronger company compared to one year ago. Our strategic focus on customer satisfaction and sales capacity positions us well for profitable, rapid growth. We remain committed to delivering exceptional value to our customers and driving shareholder value.
Thank you for your continued trust and support.
Daniel Wikberg
Founder & CEO