Bambuser AB (publ)

Good afternoon and welcome to Bamboozer Q1 2024 report. I am Mariam Garamani, the CEO, and I will hold this presentation together with CFO Jonas Lagerström. Our agenda today includes a quick company introduction, an overview of our Q1 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 the video commerce industry. Our journey began in 2007, initially providing a groundbreaking video technology that allowed users to stream live video from their mobile devices. In late 2019, we made a strategic pivot into the world of video commerce, a move that has since then drawn in more than 350 prominent brands spanning across 45 countries. Our global footprint now extends to key locations such as New York, London, Paris, Tokyo, Turku, and our headquarters in Stockholm. Since the beginning, we've been achieving strong ARR growth. However, since a couple of quarters, we're facing a tougher market with customer churn and longer sales cycles among our enterprise clients, affecting our ARR growth rate. We remain optimistic about our long-term ARR prospects, given the significant market opportunities ahead. And we're pleased to report that our net new booking showed a plus this quarter, even if it doesn't show in the ARR as of yet. The battle for the attention of the modern consumer is fierce and competitive. The true scare commodity, as said by Satayala Nadella, CEO of Microsoft, as of today the most valuable company in the world. Consumer attention spans are shortening, going from 2.5 minutes in 2000 to 1.3 seconds as of today across both Gen Y and Z. Over $600 billion will be spent on digital advertising in 2024. By simply spending more money, you won't win the customer's attention. To win, you must understand where your consumers are spending their time today. And the smartest brands are taking these moments of attention and turning them into memorable experiences. And that is exactly what Bamboozer is doing, 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. I will now guide you through some of the key highlights from the first quarter. Among some of the wins this quarter was Curious, Fossil and Alternate. We also had successful expansions with Dior and Clarins. I want to take this opportunity highlighting a customer story we did last quarter with Sonos. They really understood how to adopt our platform and using video commerce to enhance customer relationships and drive sales. Their ROI of their investment in Bamboozer is a remarkable 3,507%. This is an example of how video commerce can significantly revolutionize the customer engagement and profitability for the merchants. We introduced our first general release around AI. The AI moderator helps our merchants to moderate chats during live shows by offering real-time suggested answers. By connecting to product detail pages and other data around the show and the merchant, this feature saves time and resources for the merchants while they can answer accurately and also fast to keep the audience engaged. We released our Shopify app during the quarter, enabling Shopify merchants to seamlessly and independently onboard and use Bamboozer's social selling solution, also known as Want2Many. This is a great opportunity for smaller merchants to try out our solution and then grow with us as their business evolves. It also gives us credibility in the Shopify ecosystem, which is important for the larger customers on Shopify Plus. A significant event after the quarter was the acquisition of Klarna's virtual shopping solution, established by Hero, currently under working name Bamchats. This chat's first solution gives merchants a powerful tool to communicate with the customer and drive conversions through insight-driven chats. The HERO solution would gradually be integrated into our one-to-one solution. That is becoming a full digital clienteling solution offering the best in class in terms of chat and video call. The acquisition also means that we're welcoming a number of few new merchants with an estimated ARR of approximately 9.5 million SEC. I'm now moving over to Jonas Lagerström who will present the SaaS KPIs and financials.

Thank you. So if we start with an AR bridge, AR was minus 24% a year over year at constant exchange rates and minus 8% quarter by quarter. New business is still a bit slow, but we're seeing better momentum in customer dialogues. And this quarter also showed a small plus in net new bookings. AR by customer. During Q1, we saw a decrease in the number of customer groups compared to the previous quarter, but we witnessed a flat development in AR per customer group, which is due to less downsell and smaller AR tickets per sharing customer, which also suggests that we are sharing smaller customers. In some cases, the usage-based pricing model is still driving initial decreased AR, which we anticipate will go back to growth over time. If we look at the regions, they all show negative AR growth with APAC having the most challenging quarter with churn and downsell. Moving over to the net revenue retention, our top 20 accounts reached an MR of 101%. The group NIR came in at 65% in this quarter, more or less in line with the last quarter. This is the first quarter we are presenting our net sales without Relatable that was divested last quarter. The SaaS sales were down 22% year-over-year, in line with the ARR development. The gross margin also now only reflects our SaaS business and reached 79%, a decrease of two percentage points year-over-year and one percentage point up from last quarter. Our adjusted EBITDA continues to improve despite a lower net sales, and we see an improvement of 6 million SEK year-over-year, an improvement with 20%. Consequently, we see similar improvements in our operating expenses that have been stabilized for the last three consecutive quarters. It's worth highlighting that this quarter includes one-time costs relating to layoffs of approximately 3.7 million SEK. The reduced OPEX is a result of our initiatives of right-sizing the organization and the cost overview of office space, tech stack, and marketing costs. Finally, the cash flow was minus 24.7 million SEK, a positive development from last quarter. The main driver is the improvement of our adjusted EBITDA in absolute numbers, which can be seen in the operating cash flow. We end this quarter with a cash balance of 247.3 million SEK, which we consider is sufficient taking the company to positive cash flow. We have now reached the end of the presentation and we are now inviting you to a Q&A session.

If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Nicola Kalinowski from ABG Sundal Collier. Please go ahead.