Divio Technologies AB (publ)

Welcome to today's broadcast where we have Divio with us, who will present his Q1 report for 2024. The presenters are the CEO, John Levin, and CFO, Fredrik Wallmark. If you have any questions, you can use the form on the right, which we will take up during the Q&A after the presentation. With that said, I will pass the floor over to you.

Ja, tack så jättemycket och tack för alla som tittar. Jon Davin heter jag och är vd sen en tid i Divio och med mig har jag då Fredrik Wallmark, min CFO och vapendragare. Jag tänkte lägga upp så att vi gör som vanligt en kort presentation ifall det är någon som inte känner till oss. Ska försöka hålla den väldigt kort och krispig. Och sen går vi in på lite vad som hänt, både ta del av rapporten och lite vad som händer i bolaget. And then questions. So I'll start with a short introduction of Divio. As I said, we are an old web agency from Switzerland that sold to a product company in 2014, approximately. We released the first product then, and then a little later in 2016, we released the product that we sell today. and we create it according to our own needs and will soon go into what the service does for something. We were noted at Nasdaq 2019 and today in 2024 we have about a steady 600 customers. We don't focus so much on the small customers anymore, we try to shift them to bigger customers and large enterprise customers. And that category is growing steadily, while the smaller customers are struggling at about the same level. What we do, when you go in and handle, go over from a cloud service or from on-premise with your own data centers and others, so you had too much to cloud services, that is to say that you buy space at IWS, Google and so on, they stand for themselves and everything is in a kind of cloud solution, all your data, all your web applications and so on. Att göra det här och underhålla det är väldigt komplext. Det är betydligt mer komplext än vad man tror. Det är mycket man måste hålla koll på. Det skapar en del huvudbry hos bolag. Vanliga utmaningar man har är dels kostnader. Det är svårt att förutse kostnaderna. De brukar oftast öka lavinartat ut. The suppliers develop their price models and you need more and more. You are also dependent on different expert individuals who are able to do these multi-service solutions. They build their own variants and put together different buildings to be able to maintain and keep it going. And they are often expensive and hard to get hold of, and not especially, some are well, I will not say, I will never say I can, but many jump around to different companies and leave solutions for themselves that only they understand. And so this is often a burden for many companies. And then you also have to make sure that there is 24-7 availability, and that creates a lot of stress for many companies. Then you have the whole compliance, security, and so on, which also becomes a bigger and bigger issue that you have to keep an eye on. It also creates stress. And then for those who build and develop web applications and so on, who just build it and then just want to launch them quickly and effectively, it also tends to be a lot of stress, not stress, but a lot of concern that it will be able to go as fast as you want. Then also, if you have a problem finding the right support from different target suppliers and other suppliers of applications and so on, it is very tricky and difficult. Man kan lösa det här antingen genom att man anlitar en stor mängd konsulter och experter eller så hittar man en lösning som våran som automatiserar väldigt mycket av det här arbetet som görs annars manuellt. And that's why we exist. We increase the efficiency and make sure that all developers are happy. They can focus on developing web applications and launch them painlessly and easily. And then we stand for making sure that it works and is up and running and has a high uptime. That is, it turns on and the availability of these web applications is high. Vi minimerar också risken just när det gäller att det ska gå ner, att vi tar hand om det som sköter support och så vidare så att utvecklarna och även beslutsfattare och ansvariga kan sova gott på nätterna. Vi ser också till att optimera kostnaderna och sänker kostnaderna och ser till att det är framtidssäkert. Vi tycker också att CFO och CTO är glada. And then we are experts in that area. We are there and the customers should be able to have some peace of mind when they are connected to this part of their business. That was briefly what we do. I'll jump over to Fredrik. Can you talk a little bit about our business model?

Yes, the business model is a classic transformation model. We usually talk about SaaS companies, we usually identify ourselves as a SaaS company. We have a platform as a service, both infrastructure and software. It is like a code that has been built and that makes it extremely scalable. A copy is not difficult to do, even for another customer on the platform. This means that we can grow with the number of customers in a very cost-effective way, but we can also grow within a customer with a large engagement of several clients. We always meet our MRR, which stands for our Monthly Recurring Revenue. We are on it all the time and hunt for it. It is the recurring income of each month that we see. So if an agreement is over 12 months, the contract value is divided by 12 as we look at it and we build on it all the time. This means that we have a very predictable income stream from now on. We know when customers will pay and when, and we also know the income for us and when. We also have a low churn. It is very rare that a customer who has come to us drops off. This also makes the production work easier, that we focus more on evaluating more customers and then maintaining our Good support, I would say, that no one is afraid of. And this is because the product is very sticky and customers appreciate that it is a cost-reducing and value-added product. And then financially, it works so that you pay in advance. This is normally yearly upfront. Now we have had a few times in recent times where some customers have I've chosen to pay several years in advance. This is very good for our cash flow and our working capital. Where we get the money in advance and then use it to maintain the service. But with very small costs that we maintain the service. We work on selling more and improving it.