24SevenOffice Group AB: Interim report, January - June 2024

CEO's comments

Nasdaq-Listed and Extraordinary Organic Growth

I am yet again excited to announce our Q2 2024 report, marking the fourth consecutive quarter of extraordinary organic growth with a 35% year-over-year increase in revenues. With a significant year-over-year improvement of MSEK 33.3 in EBITDA and a margin of 16% our performance exceeded the Rule of 40 standard, showcasing our scalable business model and sustainable growth. As we close the first half of 2024 these results again place 24SevenOffice as one of the top organic growth SaaS companies in the Nordics, best among our peers and with unit economics among the top tier with an LTV:CAC ratio of 22 and 11 months to recover CAC.

We are proud to announce our successful listing on Nasdaq First North, an important milestone that reflects our continued transition into an international B2B SaaS leader. This listing enhances our financial flexibility and provides a platform for broader ownership as we continue our growth journey. As currently one of the best performing SaaS companies in Europe, this step solidifies our position as a more international brand and aligns perfectly with our long-term strategy of expanding both geographically and in service offerings.

In Q2 2024, we reached MSEK 100.6 in sales, a MSEK 25.8 increase from Q2 last year. For the first half of 2024, the year-on-year growth is 34%, a MSEK 51.6 increase from H1 last year. While this extraordinary growth is expected to normalize in the future, we remain confident in the strong momentum we've built and we will continue prioritizing a good balance between growth and profitability within the Rule of 40 standard going forward.

We are also pleased to report continued EBITDA profitable growth following our significant investments over the previous years. For Q2 2024, our EBITDA ended at positive MSEK 15.7, a MSEK 33.3 improvement from the same period last year, despite some extraordinary legal costs associated with the Nasdaq listing and other one-off activities temporarily reducing the profitability. For H1 2024, our EBITDA ended at MSEK 39.2, a MSEK 69.1 improvement year-over-year.

Over the past two years, we have been relentlessly capitalizing on growth opportunities through significant investments in our core technology, AI accounting, and new business areas such as payroll, debt collection, HR, and MRP for manufacturing businesses. Several of these new revenue streams have materialized ahead of schedule, contributing to the exceptional growth we have seen over the last few quarters. We remain focused on continually improving existing and driving new revenue streams, and we are well on our way to achieving our short-term financial goals of MSEK 500 in revenue and MSEK 50 in EBITDA within 500 days.

Our investment in AI and automation continues to pay off significantly, exemplified by the extended strategic agreement with HSB in Sweden, valued at MSEK 10 annually. Since 2019, HSB has used our AI-powered system to process over a million invoices annually, driving major efficiency gains, and we are excited to continue this successful partnership. Our growth is further fueled by the recent strategic partnerships with Lyvia and ØkoRåd. Lyvia Group, a European technology leader, has selected 24SevenOffice as a key ERP and accounting software provider across its portfolio, expanding our reach to a broader client base. Additionally, ØkoRåd AS, Norway's largest accounting franchise, has chosen 24SevenOffice as one of its preferred systems, with an anticipated increase in Annual Recurring Revenue (ARR) of MSEK 5, creating significant future growth opportunities.

I am also proud of the 24SevenOffice team and the progress we have made. As we grow, we are also strengthening our leadership. On August 1st, we welcomed Petter Moen as our new Chief Product Officer. Petter brings a wealth of experience from his previous role as a Lead Data Scientist at BCG X, where he led AI initiatives in Norway and the rest of the world. His leadership will undoubtedly play a key role as we continue to innovate and drive AI solutions across our product portfolio.

As we look ahead to the coming quarters, we continue to have a strong pipeline and several potential partnerships to announce. As one of the best-in-class SaaS companies, we are confident in our ability to maintain our leading position and to continue delivering sustainable growth and profitability within the Rule of 40 standard. Our continued investment in cutting-edge technology and product innovation reinforces this confidence, enabling us to stay at the forefront of the industry. With our strategic focus and solid financial foundation, we are on track to achieve our financial goals and continue creating long-term value for our shareholders.

This disclosure contains information that 24SevenOffice Group AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 28-08-2024 07:15 CET.