Cint Group AB (publ)

Thank you very much and good morning. Welcome to our Q1 announcement, our Q1 results. It doesn't feel like very long since we were here last time, does it? I think we did Q4 in the end of February, so it's a couple of months. So let's get going. Next slide, please. Slide two. This is the same slide as you would have seen before. Can you move it forward, please? uh can you there we go uh so it's just a very simple explanation that centers the world's largest survey exchange where over 4 000 companies um come to get their surveys answered by over 300 million respondents so we plug in an enormous number of panel providers and our own supply on one side and on the other side, um, we have thousands of customers and, uh, wanting to get their surveys answered. And, you know, roughly speaking, we do 300 plus thousand surveys a day, and that can peak in, um, in, in, uh, peak time. So it's a, it is, it, it has the economies of scale and the, the scale to be the world's largest exchange for, uh, getting surveys answered. Next slide, please. Just in a nutshell. So, Q1. I'm actually going to go to point four first. Can we have the next slide, please? Oh, it'll come. So, point four first or the fourth bullet point. We just noticed in a couple of the reports that have kind of come out already this morning that there's a little bit of confusion around what we've done with the different the changes in in reporting. So let me just explain that. And Neil's one who's our new ish CFO who's sitting next to me. Say hi, Niels.

Good morning.

Well, we'll explain more later as we transition to one platform, which is going to be called the Sync Exchange from the two previous legacy platforms, the Lucid platform and the Sync platform. we want to recognize revenue in the same way. Previously, SINT recognized revenue on the SINT platform gross and then supplier costs or costs of the costs that go to the sample, the panel providers came in as a cost of goods sold, whereas On the Lucid platform, we recognized just the difference between those two as revenue. So there was a bit of an apples and pears thing going on there, which had been the case ever since the acquisition. And as we now move to one platform, that makes no sense. And so we want to, starting in Q124, recognise revenue in a consistent way. We think it's also the right way to do it, frankly. And interestingly, what happens is obviously the top one revenue goes down, but the gross profit is significantly higher. And the difference between what we're now calling revenue uh and gross profit is really hosting two things hosting costs and the costs of the the people internally that support our customers or or run the managed services that uh that the customers use so so that's the top line and then on the cost side we decided that it would be much more helpful to the market and and internally uh direct to to account for things in a more in a more departmental way. So R&D costs, sales and marketing costs, general administrative costs, and break those out. Whereas before that, that wasn't the case. They were just all lumped in personnel. So we've made these changes to be more consistent and more transparent. And then we get down to an EBIT A number, which we think is a more useful number in terms of the actual performance of the company. So we're doing this to be consistent uh as we transition to one product um or one platform and to be helpful so i just want to make sure that people that everybody is clear that that we personally internally think that this is a move uh towards transparency and openness and and and consistency rather than any sort of um anything else so i just made that point because i'd seen a couple of comments this morning so let's go back to the quarter um It's a growth quarter, right? So on a net sales basis, and if we were to look at it on a previous basis, growth sales basis as well, it's a growth quarter. It's the first quarter of growth since, I think, Q3 2022. I think from memory, I wasn't here back then, but it's a milestone. So I'm not going to make it bigger than it is. It's a very small growth year on year. but it's still a growth quarter. And I was asked back in June, the earnings, the Q2 earnings last year, when the company will return to growth. Well, and I said in the not too distant future, well, I think that this is roughly the not too distant future. Just want to be cautious that the idea of returning to growth suggests that it's going to be there permanently. We're not giving guidance on Q2 and beyond. So we're not saying that this is now back to growth and growth is going to increase. Not saying that. That may be the case, but what we are saying is that Q1 is a growth quarter. So simple as that. And that's driven by, you know, really strong performance in media measurement and some weakness still in the historic the two platforms, the two exchanges. So our goal is obviously to combine those exchanges, drive efficiencies, and make sure that we get back to growth there as well. We've started to migrate our managed service customers, as I said, in February. That's on plan and going well. And yeah, the internal teams are extremely happy with the new platform because they're using it to run the managed services on behalf of our customers. And we are beta testing our self-serve platform, the new SYN exchange. in may so very soon next next week uh or at least may starts next week i'm not sure we actually will start absolutely next week because we're still bug fixing but um it's going well that's what i want to say there okay next slide please um so here we are the figures um net sales 36 million 36.4 million 1.6 percent constant currency as i said gross profit um also uh OPEX down year on year and EBITDA up. Actually, the gross profit percentage is down. I think the gross profit actually is slightly down because the gross profit margin is slightly down versus last year. OPEX is less. EBITDA is up. It's not hugely up, but it's up. So as we're carrying this cost of integration and consolidation, we're still managing to reduce that cost, even with inflation and so on, on a year on year basis whilst actually just returning gently to growth. So nothing too dramatic there, but I just wanted to be clear about what's going on. Next slide, please. Slide five. We've decided to say a little bit more this time about the media measurement business because it's becoming quite material and it's performing super well. So I wanted to sort of flesh that out a little bit. You can read what I've said here, but I'll just summarize it. increasingly cross-platform so historically it would have been mainly sort of digital advertising but now we're in in integrating or making making it possible to compare things like audio and social and linear tv tracking so broadening out the scope of the of the offering and also onboarding to really big new partners in Netflix and Disney in Q1 as well. So the revenues from those deals really just beginning to show up in Q1, but those are significant and Netflix have announced uh the deal was sent in there in their earnings call recently and also the upfront pro um season where the tv you know pre-sales of tv as in the us sin is baked into that uh with with netflix so so really encouraging lots of great work done by the team there uh great performance and and obviously more to come um slide six please focus on product integration and customer migration. I've been saying this since I joined. Synth is, you know, in 2023 was a bottom line loss making company. And as we all know, it shrunk last year. So My job, our job as a team, and I just want to make a note that I'm incredibly happy with the senior team that we've got in place now. So just a nod to them. They're doing amazing work. Our job is to integrate all of the technologies that we have inside the company, create one best of breed, fantastic new platform with a new user experience, streamlined, efficient, baked in all of the learnings that we've had over the last 10 plus years. fire up or refire up and reinvest in sales and marketing and make the company leaner and have uh more modern products to drive growth and be more efficient so so consolidation is the net is the first piece of that consolidate the platforms consolidate the back-end systems consolidate different Salesforce instances, different NetSuite instances, all of the stuff that is required. And that's going really well, massive undertaking, lots and lots of work, lots of people doing this work internally. And as we cycle through that consolidation, in the coming two three quarters the company will become more efficient it will become easier to run it will data will flow more seamlessly we will automate processes it will be a very different company and alongside that we'll be launching the new syn exchange so so lots and lots of work and focus been on on consolidation and integration and we're also moving into the standardizing and optimizing how we do things as we move into a new planning process in the next two or three months so so lots of really really good work this is continuation of the messaging that i've been saying since i joined about a year ago um but i'm i'm super happy with the way things are going it's a lot of work but it's going very well and the customer migration is um is in play as i said a few minutes ago next slide slide seven please um quality Obviously, quality was a big deal a year ago when we announced that it was spiking upwards. It's been a constant sort of base note in these calls for the last year. But I'm pleased to say that it's now that the reversals are now below 9%, which was the target and amazing work by all the engineering teams inside Sint. both on internal projects and integrating external bot analysis and bot tracking products that have allowed us to really get on top of this. So again, great work, R&D team. And we're not going to talk about this going forwards unless it becomes a problem again. It's not part of the growth story. It's not part of the core work to consolidate and improve and grow the business we will keep an eye on it and if it starts going in the wrong direction we'll talk about it but it's not doesn't warrant this level of this level of discussion once it's under control which it now is and still trending downwards so that's all I really want to say on that but I just want to be clear and transparent Slide eight and then my final slide. It's a repetition, but. I think by now you will know that we are extremely focused on making this company streamlined, efficient, highly, highly productive and prepped for the next phase of its evolution, which will be a phase of innovation. And we're moving to that reasonably quickly now. And the levels of excitement inside the company are beginning to go up, you know, cautiously. But we are still executing this strategy this year. Consolidate, standardise, optimise and plot that path to efficiency and higher profitability. So that's it from me. I will now hand over to Niels. Over to you, my friend. Morning. Slide nine, please. Next slide. And then maybe slide 10.