Bambuser AB (publ)

Good morning and welcome to Bambuser Q4 year-end 2023 report. I am Mariam Ghermani, the CEO, and I will hold this presentation together with CFO Jonas Lagerström. Our agenda includes a quick company introduction, an overview over our Q4 highlights, and a dive into our soft KPIs and financials. Thank you for joining us and let's begin. Bamboozer is at the forefront of video commerce industry. Our journey began in 2007, initially providing a groundbreaking video technology that actually allowed users to stream live video from their mobile devices. In late 2019, we made a strategic pivot into the world of live video shopping, a move that since then has drawn in more than 290 prominent brands spanning across 53 countries. Our global footprint now extends to key locations such as New York, London, Paris, Tokyo, Turku, Dubai, and our lovely headquarters in Stockholm. Looking at our ARR developments, since the beginning, we've been achieving strong ARR growth. However, we're now facing a tougher market with customers shown within our long-tail clients and also longer sales cycles among our enterprise clients. affecting our ARR growth rates. 2023 was a tough year for retail and e-commerce, and many brands saw a decline in sales. As we sell to a declining retail industry, we are affected by this decline in the market. Nevertheless, we saw growth among our top 20 enterprise clients with 3% year over year. We are the leading enterprise vendor on a global scale, And that is where we are sticky and where the clients have a long-term commitment to our platform. We remain very optimistic about our long-term ARR prospects, given the significant market opportunities ahead. To give you a better understanding of Bamboozer's value proposition, it is important for you to understand that the battle for the attention of the modern consumers is fierce and very competitive. The true scarce commodity of the near future will be human attention, as said by Satayana Della, the CEO of Microsoft. Consumer attention spans are shortening, going from 2.5 minutes in 2000 to 1.3 seconds as of today across both Gen Y and Gen Z. Looking at the digital ad spends where most retailers are spending their dollars today, over 600 US billion will be spent on digital advertising in 2024. But by simply spending more money, you will not win the consumer attention. To win, you must understand where consumers are spending their time today. Consumers are spending an average of six hours and nine minutes a day online across education, sorry, across gaming, social media and shopping. And the smartest brands are taking these moments of attention and turning them into memorable experience. And that's exactly what Bamboozer is doing for our clients. Taking these categories and transforming them into inspiration, education, purchase and retention. By embracing video commerce, brands will win a significant part of the e-commerce market that is estimated to be worth 8.5 trillion USD in GMB by 2030. We are proud to partner with some of the best brands in the world, including the LVMH Group, Hugo Boss, Net-a-Porter and Saks Fifth Avenue. Together, we're innovating commerce and reshaping old brick and mortar into new ways of working and interacting with their customers and communities. Now, please let me guide you through some of the key highlights from the fourth quarter. Among some of the wins this quarter was Borghese, Belkin and Auto Mercado. We also had successful expansions with Christian Dior, Fast Retailing and Electrolux to mention a few. Some of the key highlights within our platform was social selling. We launched a social selling feature to empower our clients to elevate their marketing and sales efforts by directly tapping into social media, starting with a seamless integration on Facebook. Now, businesses can effortlessly connect with their audience by sharing links that leads to specific product detail pages within the live chat on Facebook. This is not only enhancing convenience for both businesses and customers, but also drives a more personalized engagement. This marks a strategic move for us, signifying the dawn of a new era in customer interaction and online commerce. We're excited about the potential this holds for our future growth and the value it brings to our clients. In December 2023, we launched our first advisory board named the Frontrunners in Stockholm. This advisory program is designed to adopt collectively knowledge sharing, strengthen customer relationships, and consistently highlight successful partnerships. We believe that bringing together diverse perspectives, we can drive innovation and better serve our community. Looking ahead, we're excited to announce that the US launch of our advisory board is planned for Q2 this year, extending the reach and impact of this initiative. This move underscores Bamboozer's dedication to collaboration, innovation, and transparency within our community. Bamboozer launched its first end user conference called Bamboozer Beyond and offered attendees an immersive experience tapping into the evolution of e-commerce. We were honored to host speakers from esteemed organizations such as Google, Uxnet-A-Porter Group, DevoTeam, and Imperial College Business School. Throughout the event, these speakers discussed the transformative impact of technology in reshaping the shopping experience, providing very valuable insights into the future of commerce. Bambuser Beyond serves a dynamic platform for thought leaders to exchange perspectives and showcase advancements in an ever-changing landscape of online retail. As announced in December, we have successfully divested Relatable, aligning with our strategic overview initiated last quarter. The consideration price for this transaction is 22.3 million SEK, and there is a non-cash item cost of 85.5 million SEK associated with the transaction. This strategic move positioned us to focus our resources on continuing to building the global leading video commerce platform. I'm now leaving over to Jonas Blagerström, who will present the SaaS KPIs and financials.

Good morning. The AR was minus 21% year over year at constant exchange rates and minus 7% quarter over quarter. New business continued to be slow as a result of the shadowing market with longer sales cycles. Churn is not where we want to be. but it was reduced by 50% in second half of 2023 compared to the first half. Q4 saw a decrease in the number of customer groups compared with the previous quarter, which was a direct result due to sharing and slower new business bookings. We're also noticing a drop in AR per customer group, which is in line with our previous estimation

due to the transition into a usage-based pricing model.