Divio Technologies AB (publ)

Good afternoon. We welcome you to take part in a part-time presentation from Divio Technologies, where CEO John Levin and Finance Manager Fredrik Wallmark will present the company's Q2 report that was published this morning. After the presentation follows a Q&A. My name is Fredrik Hansson and I come from Finnvajr. Jono Fredrik, welcome.

Thank you very much, and thank you to everyone who is watching our report. My name is Jon Levine and I am the CEO of Divio. I am joined by Fred Wallmark, CEO. First, we will go through the background of the company. Then we will talk about the numbers and what is happening in the company and where we are. We'll get started. I'll try to go through the background quickly. Let's see if it works. We started as a web agency a long time ago and converted around 2014 to a product company. That's when we introduced the service we have today, which we first used for internal use to facilitate all web projects. We had different goal solutions for our customer account. It was so good that we decided to let others use it and convert it into a product company. And in connection with that, we also took in money because it is quite a difficult conversion. You have to sacrifice part of your consulting revenue to invest in internal development. So we took in money, and we were a Swiss company from the start, and it was tight in Switzerland, so we were recommended to do it in Sweden. We took in money in Sweden against a promise to be noted on the Stockholmsbörsen, or on First North. And we also did that in 2019, and today we are a clean product company, we have a little consulting service left, but it is more connected to our platform rather than web application consulting. Today, we have approximately 700 paying customers. Customers are spread out in different countries, regions and so on. The majority of customers are relatively small. They pay somewhere between 10 and 100 dollars a month. Then we have a number of enterprise customers, where we are at our largest crux, who pay from Några tusen dollar i månaden till 50-60 tusen dollar i månaden. Varierar rätt stort. Men vi har också vår stora tillväxtbas. Hoppar vidare. Och vad är det vi då håller på med? Det är lite krångligt att beskriva för de som inte är initierade. Men man kan väldigt kort säga att när du som bolag går från att ha en... Hosting, which consists of its own servers and is supposed to be a goal solution, there are a lot of questions you have to take into account. What I'm showing here is how such a goal infrastructure can look like. And there is a lot to keep an eye on, which creates a lot of concerns and thoughts among those who are responsible for this. And then you have to solve it in different ways. I jumped a little here in the pictures, but... Yes, we can jump right in. There are two ways to handle this. One is to hire an army of developers or, above all, DevOps. They are responsible for operations and monitoring infrastructures. Or you can use a platform like ours to facilitate- We actually take care of what most DevOps do. We take care of maintenance and ensure the safety of the cloud infrastructure. You can describe us a bit like these IT guys who sat in the server room and saw that everything worked, because that's what our platform is all about. We've taken over the cloud services. And that's why we exist. That's because we increase the efficiency of our customers and the developers who often want to develop, they don't have to deal with many infrastructures and they are happy. They can also quickly launch, release and test their web applications without any problem and without being dependent on others. Det är en lösebar plattform. Man minimerar också risken och man kan säga att de flesta anledningarna till att en webapplikation går ner eller det händer någonting, det är så att någon har varit där inne och kluddat. Någon som inte riktigt alltid vet vad de håller på med eller gjort ett misstag för att det har gått fort sådär. By automating most of this, you minimize the risk. If something were to happen, which it does, regardless of whether you use a platform like ours or how you solve it, then anything can happen. But what is good to know for our customers is that we take care of them. They usually never realize that something has happened before it is solved. So those who are responsible can sleep well at night. Then there are those who have been working with AWS and so on. Their business models are very complicated and if you don't know the situation, you often pay a lot more than you actually need and benefit. So with the help of our services, you also optimize the cost so that you only pay for what you need. So that the CFO in the company does not have to sit and think all the time about why these costs in the avalanche are increasing all the time. They are stable and predictable. Then there are a lot of changes. The technology is going very, very fast and you have to keep an eye on all the development and everything that happens. If you don't have that, you can easily go after it and have an obsolete solution. With the help of our platform, we ensure that we secure both the web applications and the obsolete infrastructure. Then we have the support, so that as soon as you need help, you don't have to talk to or take part in difficult to understand documentation from AWS or other suppliers, or try to get in touch with someone to talk to. We are always available and we are experts on this, so you don't have to keep or build up the expertise internally. Let us be the experts. Our slogan is peace of mind, which is rarely found if you don't use solutions like us. Peace of mind is important for our customers. Kort fördelar är egentligen att man kan minska resurser framför allt kopplat till målinfrastrukturer och resurser som är svåra att få tag på dessutom. Och sen kan man då sätta sina You can put your important developers on the development side instead of working with multiple structures and blocks. And then you don't have to have contact with a lot of different suppliers, it's just one contact, so you have control over everything. And then you don't have to worry about being locked up in a solution that you build in and never get out of. And it's also very important that you know that the security is high. You don't have to worry, because we are ISO certified. We have extremely high security on our platform. IWS and Molling are on their part. We have it on our platform, which means that your web applications are much safer. So, Fredrik, a little bit about the business model.

Yes, thank you. As John was mentioning, we have a transformation model, which is a typical SaaS company, but we provide a SaaS solution, a platform as a service, both infrastructure and software included. So we have a finished product, it is very scalable, it takes a lot of It takes time to get a new customer and add them to the platform since the pod is already developed. This means that our growth occurs by adding customers. But we can also increase the engagement with existing customers, which we do too. So over time, you can add more and more of your applications to the solution. What we regularly measure in our MRR is monthly recurring revenue, our recurring revenues. This is a regular SaaS copy, either ARR or recurring. This means that we get very predictable income flows. And as you can see in the last one, we get an advance payment, which is good for our working capital, and then we get income over 12 months or over the contracted period. Then we have, as Jonoxos is a very cost-effective product for our customers, which means that they can lower their costs and save money. And the customers who have entered our platform notice this and therefore tend not to leave us. We have a very low churn. It's not just cost savings, it's also complicated. Good. Maybe the next slide, Daniel. So, andra kvartalet 2024, vi växer våra renoverationsintäkter med 11%. Men däremot så går våra konsultintäkter ner lite grann. På det hela så är de totala intäkterna 9% på året. Men man kan säga att vi växlar till lite mer kvalitativa intäkter som är längre och förutsägbarare. Man ser även att kostnaden går upp till 9,5 miljoner från million we have taken on staff this is above all staff costs that go up a little more on other costs and this is where we invest in our staff and add more resources to the platform to develop sales later MRR is at 154 000 US dollars a month it is the currency we That's why it's a class to measure in, as you can see. There are changes that bother and you have to explain all the time. But the MRR has gone up 5 to 4, which is a growth of 6%. And in the cash register there are approximately 5 million in the half-year shift. And what has happened during the quarter is that we have received a large payment last quarter, which is an extension of a I think that was everything from the financial side.