Carasent AB

Welcome to Carasent Q2 Report for 2026. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to CEO Daniel Omen and CFO Svein Martin Bjornsted. Please go ahead.

Good morning and welcome to our presentation of the second quarter. My name is Daniel Öhman and with me are CFO Sven-Martin Björnstedt. Just a quick overview first. At the center of any clinic or hospital is the HR system. It is the same for CalSent, where we offer a number of HR systems for different markets and needs. In addition, we offer a number of platform solutions that connects the caregivers with each other and other important players in the sector. And as you can see, we have highly recurring revenues with more than 90%, a 50% organic ARR growth, and 110% net revenue retention in the quarter. Looking at some of the highlights of the second quarter, I'm very happy that we finally acquired InfoSolutions. That's something we have been working with for a number of years. It's an extremely important player in the sector and for our products. And I will talk more about that within short. In second quarter, we had very strong sales, both in new customers and add-on services. As Sven-Martin will show a bit later, our sign of implemented went from 4 million in Q1 to 6 million in Q2. And then most of those sales are web docs. So almost all of the 4 million from last quarter have been implemented in this quarter. And the 6 million is to be implemented in the next. So those are almost all new sales in this quarter. So we have a really good and strong pace in the sales. And I think that the organizational changes we've done is really working. So I'm very happy with that. For Germany, we have appointed a new CEO, a very experienced and entrepreneurial CEO with a strong sales and marketing background, which I'm really happy about because we are gearing up for getting WebCurtain to market. So we really need to have the strongest team possible within sales and marketing. So I think that means that, yes, he will really help us move forward in a good pace and really modernize how we sell. So I'm looking forward to him joining the 1st of September. Looking at a bit of growth in the quarter, we have 29% growth in ARR. That's thanks also to InfoSolutions in the quarter. The organic ARR growth is 15%. Revenue growth in total is 11%. And that is, as it was last quarter, I want to also set for this quarter a bit lower on the implementation and consulting side. Mostly stemming from different Norwegian projects, both at Curis and Metolka at Volvart. The profitability, we have an adjusted EBITDA margin of 90% and adjusted EBITDA to 11%. And that's been adjusted for the cost of doing cost savings at InfoSolutions. Looking a bit at InfoSolutions. So for almost all healthcare providers, it's absolutely key to be able to order tests on patients. So that's blood tests, imaging, tissue samples, and so on. And there are very many different labs doing very many different types of labs. Many of you might know just within Bladder, many different types of tests you can do. There are many different types of imaging you can do and different type of laptops you want to send your samples to and you want to get replies from. So it's a quite complex network or a very complex network where InfoSolution is really the key player and has an extremely strong position. So it's been a key part. of Webdokumentorika in Sweden for many years, an absolutely crucial part actually. So we've been trying to buy it for a number of years, and it wasn't until now we could agree on a price. And I'm very happy with it. They have this strong position that will really strengthen our offering in our Swedish systems and strengthen the entire carousel actually. What they have had is a weak profitability for many years. And we've been working with the management team at Imp Solutions to really look over the cost structure and has agreed that what we can do is to do quite substantial savings on the headcounts. So we have lowered the personal cost by 25%. It's already done and implemented. So all those that are leaving has signed and agreed. I think that we will really have a strong institutions going forward after this. We have also met with all the staff after the changes and feel that they understand why it was needed and they also feel committed to us moving forward together and feel that we are in a strong position together. So that will really help institutions have a good position going forward and also have a good profitability. We will also do a number of price increases Those have already been communicated to quite many of the customers. And we'll be in a very strong position to do those pricing quizzes. But that will take effect mostly from year end. Looking with the MedSum. So MedSum is our AI assistant. So what it does is listening to the conversation between the caregiver and the patient. And then automatically drafts clinical notes. therapist or psychologist and so on, can go through and check that this is the right ones and save so much time. And that's what we hear from our customers. The ones using it really love it. They save a lot of time and can see extra patients or finish the day on time or so. So it should be a really easy calculation for customers. Our customers they see maybe 10 to 15 patients per day per caregiver, so per doctor or nurse and so on. And if it's a doctor, they have an average income of around 1,000 kronor per visit. And then the first day you take an extra patient, you're paid for medicine for the entire month. And this other 19 workdays of the month, you will make profits from using it. And it also takes away the most boring part of the work. So having said that, It's still, I think we should be able to increase the pace quite a lot on sales. It should be really easy. I think the things that hold it back mostly is, yes, it's new, it's different. Caregivers are a bit afraid. Are we really allowed to use this type of technology? Will the regions say something about us using this technology and so on? So I think it's a bit of fear holding it back. We're trying to educate the customers We also make sure that everything we do, of course, is really correct. And we really try to build Calisense and WebDocs standing in the community as a really compliant partner, a very knowledgeable partner. We're doing a number of seminars and so on to really show the compliance team we have. We have invested a lot in our compliance team. It's quite a big compliance team. So I feel that we're going to be able to push this forward. Many of the customers who have won so far are from competing solutions. So it's still early adopters, but we're also getting some from really new ones. So we look forward to continue growing it. We can grow it with the present functionality. We have very limited churn so far. So given how different you work with these technologies, I think that says quite a lot that it's very limited churn on such a different product to what they're used to using. We will add a lot of new functionality in the autumn. Then we will really from every visit also make a task list of everything you agree with the patient and then pre-fill all those things into the system. So you have ready solutions for everything you need to do after the visit. So all that administration documentation that takes so much time away from healthcare, we can really help them save a lot of time. So I really look forward to releasing all that functionality in the autumn. All of it will be there in the end of the autumn, because we're also rebuilding the UX of WebDoc to really be, so it's a native solution within the system. What we also will do in this regard in the autumn is an MDR certification. So that's quite a heavy process to go through, but it seems like The authorities will demand that these type of solutions have an MDR certification and will also make customers feel more at ease at using this type of functionality. So it will cost us a couple of millions in the autumn, but it will be worth it. So that's something we aim to do during the beginning of the autumn. And we're really working hard to increase the pace of both sales and development in Looking forward, we're able to continue our growth. I think we should, we're in a really strong position to continue to grow. Our customers like our solutions. We have a really high pace in our development, making the difference between our systems and the competing systems larger by every release. So the system is getting, all our systems are getting better at a high pace. So I'm really happy about it. We continue strong cost control. So we make sure to always, always know exactly what our costs are. We know what costs will be next quarter and we keep tight control of that. And every day we get a little bit better in everything we do so that we can continue to grow without increasing costs very much. And we're launching WebScore in Germany, where we had the official launch on midsummer day in Munich, where we really started showing it to the public, and then we have Nils coming in to lead the team, taking this out in the market during the autumn, which I'm really happy about. With those words, I'm going to hand over to Sven Martin.

Thank you. Q2 was another strong quarter financially. No big surprises and another step in the right direction. So recurring revenues continue to grow strongly and We also continue to convert the far majority of the revenue increases into profits. As you see here, contracted ARR is now 401 million, and it grew 15% organically with a net retention of 110%, which shows that the strong underlying momentum continues with with good upsell and very low churn. InfoSolutions added around 40 million of ARR, so total growth was 29%, and profitability also continued to improve rapidly. We did have some extra costs that we adjusted for that I will go through on the next page, but in general, a strong quarter, as mentioned. Looking at the P&L, the revenues came in at 97.7 million, 18% growth, where 11% was organic. So you see that, as mentioned, the recurring revenue growth was strong. The consulting side was a bit lower, but we do have a high activity now on the consulting side and the We had an improvement compared to Q1, which is positive and the trend is going in the right direction. The gross margins was slightly lower than last year. It's partly because of InfoSolutions, which has a slightly lower gross margin than the rest of the group. On the cost side, you see that the personnel expense and other OPEX increased a bit. And it's mainly due to this InfoSolutions and one-offs. This was 300,000 related to transaction cost and 3.9 million related to the restructuring and the cost savings. A positive note on that is that the transaction cost was a lot lower than we have done in previous acquisitions because we were able to do almost all the work internally this time. But this resulted in an EBITDA improvement of around 8 million and the margin increased from 3 to 11%. Looking at the ARR bridge, the growth remains balanced. We had a strong upsell, continued strong upsell. It's a mix. We continue to add new clinics for existing customers, new users. We also have a good upsell of new functionality. MedSum is starting to contribute to this, but it will also be a very important contributor in the next coming years, we believe. If you look at the churn, it's 3%. However, the legacy products in Germany is churning a bit, quite a lot compared to the rest of the group. So that's around 1% of those three. So if you look at the churn in the Nordics, it's extremely low now. It's 1.6%. So this has come down again after it was a bit elevated last year from bankruptcies, etc. But it shows that that was only temporary, which is very positive for us. New customers contributed with 5% growth. And then we also had InfoSolution adding 42 million of ARR. So InfoSolution has also grown their ARR quite significantly over the last year. which is positive. The backlog is now 6 million compared to 12 last year. You should bear in mind that last year we had a lot of these big contracts that we had had in the backlog for many years, like Volvat, that has now been implemented. And the 6 million, as Daniel also mentioned, is Mostly or only sales that we did in Q2. So actually, that's a very strong quarter for us on the sales side. It was 4 million in Q1. So a strong development there as well. This slide, I show it every quarter because it's, I would say, one of the best demonstrations of the leverage in the business. You see that orange line there on top is the revenue. It has grown around 120 million over the last couple of years. And then the dark blue part is the organic cash cost base. So OPEX, CAPEX, personnel cost combined. and it has been essentially flat over the same period. And bear in mind that this is including wage increases, inflation, etc. So it basically means that we are able to take out costs because we also add costs like We have done on the AI side for tokens and tools. We have added personnel in some areas, but we take out in other areas. the costs are essentially flat. In this quarter, 83% of the revenue increase for the organic part, if we exclude M&A, dropped down to the profits, 83%, which is in line with what we aim for, basically. but more than 100% of the gross profit increase actually dropped down. So costs were lower this quarter, just based on last year. So in summary, we have good control of our costs and continue to become more efficient. Finally, on the cash flow side, we had a very strong cash flow this quarter and also for the first half of the year. You see here that free cash flow, including the CapEx investments, was 26% of revenue for the first half of 2026. So it was actually much stronger than even the EBITDA. And this is because of the working capital effects. And I talked about this in Q4 and also in Q1, that there is some special effects in the working capital. For example, that one big customer paid in January instead of December. We also had... Yeah, a few high consulting revenues in December that was paid in January. So it is somewhat boosted, maybe around 15 million, but even adjusted for that, the working capital is very supportive for us because customers in general pay in advance for our products. Finally, on the capital allocation side, the InfoSolution acquisition had a result in net cash outflow of 92 million. And we also did share buybacks of 40 million for the first half of there. But our balance sheet remained solid with a cash position of... 51 million at the end of the quarter and no debt. So with that, we can stop there and open up for questions.