Sleep Cycle Interim Report July - September 2024: Strong Third Quarter with Solid Margins

The third quarter in summary (July-September 2024)

• Net sales totaled tSEK 65 873 (60 777) and increased by 8.4% (11,2%). Currency-adjusted net sales growth amounted to 9,9% (2,7%).
• Operating profit amounted to tSEK 20 612 (20 271), with an operating margin of 31.3% (33.4%)
• The total number of paying subscribers at end of the period was 915k (887k).
• ARPU in the quarter amounted to SEK 280 (275) kr. Currency adjusted ARPU was SEK 284.
• Earnings per share before and after dilution for the quarter amounted to SEK 0,82 (0,81).

Important events during the reporting period

• Sleep Cycle signed a collaboration agreement with MyFitnessPal, the world leader in diet and nutrition tracking. 

Important events after the period end

• No significant events took place after the end of the period.

Commenting on the quarter, CEO Erik Jivmark says:

"We can glance back on a strong quarter with a continued growth in subscribers with 17,000 new net subscribers. Revenue grew with 8.4 percent to tSEK 65,873, compared to the same period previous year. This quarter's growth stems from our strong commercial focus and renewed commitment to our core product."

"The EBIT was tSEK 20,612 and the EBIT margin 31.3 percent for the third quarter. One of our targets is an EBIT margin around 25 percent on a rolling 12-month basis. However, given our recent performance, we now expect the full-year 2024 margin to reach approximately 28 percent. We continue to manage our spending with caution and will remain disciplined until we see clear indicators that further investments will drive higher growth."

The full interim report is available on https://investors.sleepcycle.com 

Sleep Cycles CEO Erik Jivmark and CFO & Head of IR Elisabeth Hedman will give a presentation on Thursday 24 October at 9:30 CET. The presentation can be followed on https://ir.financialhearings.com/sleep-cycle-q3-report-2024

Written questions can be sent in the webcast.

This information offered is such that Sleep Cycle AB is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the care of the below contact person, for publication on 24 October 2024 at 8:00 CET.

For more information please contact:

Elisabeth Hedman
CFO & Head of IR | elisabeth.hedman@sleepcycle.com
+46 762 828 958

Erik Jivmark
CEO | erik.jivmark@sleepcycle.com 

Jonna Grenfeldt
PR and Communication | jonna.grenfeldt@sleepcycle.com
+46 70 735 7539

About Sleep Cycle

With millions of daily active users and over three billion nights analyzed in more than 150 countries, Sleep Cycle is the leading sleep tracking application and one of the most widely used solutions worldwide to improve sleep health. Sleep Cycle's mission is to improve global health by empowering people to sleep better. Since its launch in 2009, Sleep Cycle has helped millions of people understand their sleep habits and improve their sleep.  The mobile application helps users fall asleep more easily, tracks and analyses sleep during the night, wakes the user in a light sleep phase and provides insight into how sleep quality is best improved. Sleep Cycle is one of the world's most comprehensive sources for statistics on sleep and contributes to research and reporting on sleep worldwide. Sleep Cycle is listed on Nasdaq Stockholm under the ticker SLEEP. The head office is located in Gothenburg, Sweden.