BIMobject AB

Hello, everyone. Welcome to this call. Thank you for joining us today. We are getting ready to present our Q1 report for you. As usual on these calls, you can ask questions to us here in the chat in Zoom webinar, or you can send them via email to ir.vimobject.com. And as usual, we pick up all the questions at the end of this call. We had some questions coming into the email already, so we'll answer all of those at the end of the call. But let's kick it off and get started. So like I mentioned, the Q1 presentation, and today you will hear from Niklas Agevik, who's the CEO of BIMObject. Welcome, Niklas. Thank you. We are also joined by Per Göransson, who's our CFO. Welcome, Per. Thank you. And my name is Lisa, and I'll be hosting the call for you today. So on the agenda, we'll have a business update from Niklas, followed by some financial numbers from Per. And as I mentioned, we always wrap up the call with some Q&A at the end. So send your questions to ir at bimobjekt.com or post them to us here in the chat. But with that, I will leave the word to you, Niklas.

All right. Thank you, Lisa. Hi everyone. Good to be back. My second quarterly report here. Did my first one, second week on the job. And what I thought I'd do here, I'll do a quick update on the numbers for Q1. And then I'll talk a little bit about my reflections, thoughts from the first three months here at BIM, why I'm excited about it, why I think we're all excited about what we're doing here, and some thoughts on strategy and what's going to happen next and what we're working on. So I think we had a good quarter ARR growth of 10% compared to last year, which also then meant that we had a positive turnover growth. We had some headwinds from the currencies, but overall, I think a good growth. We had a smaller loss. We went from minus 18.1 million SEK last year to minus 8.6 million SEK in this quarter. We did have some one-off effects on restructuring last year, but Per will talk more about that when we get to the financials. We ended the quarter with a good cash position of 152.6 million SEK in assets. On the events, of course, big event, I started here 2nd of February. And again, I'll talk a bit more of my thoughts here and what I've been doing on the first three months. And I spent a lot of time thinking about how we are going to work, how we can move faster, how we can get great products out sooner, which led into this reorganization that we'll also touch upon. So, yeah, let's go through a couple of my thoughts here after joining BIM. And as you know, I mean, the core of BIM and what we founded the company on was to become this marketplace for BIM models. And we've done a fantastic job in building that business, bringing on manufacturers and distributing all of their models to the AEC community. I mean, basically helping architects, engineers, consultants, constructors who need that for their buildings. But what we discovered, and I think we discovered this a few years ago, is that it was just not the BIM models that they wanted us to distribute. There was a lot of other data that they were handling and that they needed to distribute. I mean, everything from technical properties of if it's a door, It can be the height of the door, how thick the door is, what kind of material the door is made of, to climate data, what is the climate impact of building that door or whatever it is. And what we discovered is that from the manufacturer side, they were actually even more interested in having all of this data distributed. and this of course led us to the carbon zero acquisition and researching this more and it turns out that this is a pretty huge problem that manufacturers in the building industry suffer from because with every new project with every new market there's more databases to be part of there's more requests for data And that's a need that just keeps increasing. There come new regulations, there come new requirements from constructors because they want to work faster and more efficient and with less waste. And then We have EPDs that are very important and environmental report that all of the manufacturers have to create. And even if you did spend the money at the time to create an EPD, that's not enough. Because in a couple of years, that's going to be replaced with a DPB, a digital product passport. And as you're a manufacturer, I mean, you're launching new products, you're going into new markets. This just becomes more and more costly. So when we talk to them and we say, hey, you know, what if we could handle all of your data? I mean, they get pretty excited. Like that's something that they want. So again, leading up to the carbon zero acquisition and what we've been doing here. That is something that we're pretty excited about doing and that we think is a very important thing for our future growth. And this might look simple, right? Like, you know, we have the BIM models today. We already distribute that. Why can't we just add more data onto this and just continue to distribute it? Well, and that is the question that I've been talking with the team a lot about. You know, how can we make this more efficient? How can we do this faster? How can we ensure that we handle all of this new data that the manufacturers are requesting? And that led us into these business areas. Because the products that we have, the customers that we are targeting, and the different markets that we are in, they are all in different maturities. The type of customers we are going after can vary quite a lot. I mean, if we are distributing a BIM file, for example, Sometimes that's the marketing department who handles that as a marketing effort to reach out to architects. While if we deal with compliance data or climate data, that can be data that's handled by somebody else in a different department. So the idea behind organizing around these business areas is that we give each part of the business room to grow. We have business area design enablement. That's the BIM object. That's the core of BIM and makes up, I think, about 90% of our revenue today. That's a great, it's a profitable business that's established. And that's how we want to keep running that. We want to run it as a profitable business established business and we want to make sure that it continues to grow. Meanwhile, data solutions, that's our business area where we handle all of this other data. Here, there's a different maturity on the products. I mean, we are still building it. We want to get this into startup phase where we're moving fast and where we're working towards clear milestones where we show that we can handle more and more data and that's adding value to both the data consumers and to the manufacturers. And to answer one of the questions that came in about this business areas right away, I mean, we're still operating this as one country. I mean, we have shared IT, we have a shared marketing, shared HR, I mean, shared as much as we can. So you shouldn't see this as adding additional overhead. It's more a way of driving the business and thinking about the strategy. Yeah, and in the reorg, and I want to stress that Leading up to this reorg, and this is where I've spent most of my time since joining here in February, is figuring out how we can move faster to handling more data. And this reorg came out of that discussions to understand, what do we need to do to move faster? And I spent a lot of time talking with the management team, with the board, with leaders in the company. And almost everyone said that, like, we're trying to do too much at the same time. Let's make sure that we do a couple of things and we do them great. And at the same time, we've been using more and more AI. We probably don't have to be as many people we are today to deliver on this tomorrow. So that was the basics behind this. With that in place, I think I can hear some people asking, we've heard this story before, you want to do more data. What's taking you so long? Why aren't we already there? Why aren't we already distributing more data? And I think I want to stress that, I mean, the team has been doing a fantastic job. I think now we're going to move even faster, but we have been solving a couple of extremely important and fundamental problems during this time to be able to actually deliver on this vision. And at the core of it is that what we're trying to solve here is really a two-sided marketplace problem. We have on one hand, We have the manufacturers that want us to distribute their data. On the other hand, we have the consumers that need that data. It can be an industry database, it can be a constructor that needed data during construction of a new building, or it can be a distributor of different products. But the problem here has been, as we've approached manufacturers with this, they tell us, this sounds great, we love this, but how many consumers do you have on the other end? And their answer has been, we don't have that many yet, we're working on it, but we don't have that many yet. But if you join, they're probably going to come. And they tell us then that, okay, that sounds good, but come back when you have more consumers. And then when we go out to the consumers and say, hey, you know, what about if you could get all of this data from all of your manufacturers from one single place? They say, oh, that sounds great. We'd love that. How many manufacturers do you have? And we say, well, not that many yet, but if you join, we can sign them up. And many of them have said, okay, that sounds great, but come back, we have the manufacturers. So that has been something that has slowed us down, the chicken and egg problem, and something that we've spent a lot of time trying to solve. To understand how we've been working on solving that, I need to explain the type of data that we're dealing with here. We're basically dealing with three types of data. The first type is primary data. And that's a manufacturer that has come to us. They have given us their data. This is the best type of data that we can have. It's approved by a manufacturer and we have primary data from many manufacturers already. The first thing we did to solve this chicken and egg problem was with the Connect product, where we started adding generic data. And generic data is data not about one particular product, but about a group of products. So to give an example, if you're a distributor, you want to know the climate impact of a specific door you have. The distributor can then sign up to us. They can request data about the door. And if we don't have that specific door in our database, we provide generic data from a database. For example, in Sweden, there is a database that everyone can use. And then we use that data. And if we have the primary data, we use that. And that actually solved part of that chicken and egg problem and led us to starting to sign up more and more consumers. And that led us to thinking, okay, what more can we do? How can we make this even more attractive? How can we get even more customers? data consumers in on the other end. And that's where we saw the green metric acquisition coming in, because a lot of this data is actually already available online. And we have spent a lot of time building an AI agent that can go out and gather data from the web. It can go to manufacturer's site, it can read an EPD, and it can input that data and it can send it to consumer. And the feedback that we received is that this is fantastic. This is very much in line with what the data consumers want. And that's a great way to get them started and get more manufacturers interested. So basically in data solutions, the loop here that we're trying to build is where we can gather that data. It can be secondary data, it can be primary data. We get consumers to use the data. We get more demand for primary data because now we have a lot of data consumers. Then we get more manufacturers to join. And as we get more manufacturers, we get more primary data. And when we get more primary data, the slope closes even quicker. So that's something we've been very hard at work. And as I mentioned with the reorg, I think this is something that we're executing on a lot faster now. And I see very positive signs here on how we're executing and moving forward on closing this loop. And just want to mention, I mean, if you see all of these partnerships that we announced, this is what they are about. They are showing that we can add more data consumers. I mean, we recently announced the Swedish building materials merchants. for example, as a consumer of data. And that just makes us more and more attractive to manufacturers. So yeah, I think that's a summary of what I've been up to here in the first three months and what we've been up to and how we view the strategy. I think we're very excited of where we are now. Now I think it's just full on execution mode showing that we can grow both on design enablement and continue to close this loop on the data solution side. Yeah. And with that said, I hand over to Per, our CFO. Thank you, Niklas.

We can jump into our revenue development. So we have a quarter with a tough currency effect when we compare year over year. USD started to weaken in spring 2025, which is visible in the first two bars here in the graph. Year over year, we lost about 80% in revenue due to currency. ARR in constant currency is at plus 10%, but as recognized revenue adjusted for currency effects, growth is at plus 14%. That's due to good performance on BIMobject.com as of 1st of January, which gives full effect in the quarter. Services revenue decreased not only due to FX, it's also due to particularly strong Q1 2025 and our main focus on the platform revenue business. And here is the graph showing how our total ARR is distributed on the more mature BIMobject.com business, design enablement and the new products respectively, which we call data solutions. And data solutions, that is where we've made the significant investments in the potential we see going forward. On the cost side, operational costs decreased 16% in total. This is largely due to temporary high costs in Q1 2025. That was related to CEO transition, social security fees related to LTIP, and the currency revaluation effects. But just as much cost decreased due to overall less FTEs and less external consultants. Cost items that did increase somewhat is related to software and AI computing costs. And looking forward, we expect operating cost base to continue and decrease and primarily driven by the recently announced reorganization. All in all, we see underlying growth in recurring platform revenue, but it's offset by currency effects and less service revenue. Hence, total net sales is relatively flat. The significantly decreased loss is thanks to decreased operational costs. And while we also continue to invest in new product development, that is done through a more cost-efficient organization going forward. ABITDA at minus 8.6 million and ABIT at minus 12.4 million.