Fortnox AB (publ)

Good morning everyone and very welcome to Fortnox Q1 2025 report presentation. My name is Mia Nordlander and I'm head of investor relations. With me here in the studio today in Växjö I have our acting CEO Roger Hartelius. The agenda for today is that we will start a Hearing Roger presenting the Q1 in Nambus, followed by some business highlights, and then we will have time for questions. You can either call them in to us here in the studio by dialing plus 468 559 313 37, or you can send them to us here in the chat. So once again, we're welcome and over to you, Roger.

Hi there, and thank you, Mia. So first, a short summary of the first quarter. So Q1 showed 25% organic growth and 33% EBIT growth. The RPC target of 300 Swedish kronor was surpassed, and we reached 304. And our focus on strategic changes aligned with the new direction continues. So looking into the numbers, we saw a customer growth with 14,000 customers in line with Q4 previous year, but yeah, and a little bit lower than previous year. And in Q1 last year, we acquired Board Easer, which added 3,000 customers. We had a growth in RPC with six Swedish kronor, and that made us surpass our target of 300 per month. The revenue growth was 21%, and adjusted for acquisitions and divestment, the organic growth reached 25%. We had an EBIT margin of 44%. And looking at Rurafot NOX growth and margin combined, we hit 64%. So a stable and strong first quarter in 2025. And looking at customers and average revenue per customer, we have seen a stable development towards our target that we set up in 2020. where we said that we should double the number of customers and double the average revenue per customer and now reaching the average revenue per customer. But we are slightly below on the numbers of customers. The combination, though, is of usage, which we measure in average revenue per customer and the number of customers are, as said previously, still a focus and also crucial for our revenue growth. And as a result of the new direction, we focus more on increased usage and we see significant growth opportunities to getting more usage among our existing customers. But I would like to remind you that the combination are the two targets. The number of customers and the average revenue per customer remains in place, which is based on the business plan established in 2020. And looking at the development over the last four years and closing Q1 with the net sales of 563 and organic growth by 25, An EBIT of 246 million and an EBIT growth of 33%. We think that it proves a sustainable business model. And looking at the rule of Fortnox, which is an important metric for us to balance growth with margin, we hit 64%. And that gives us 16 consecutive quarters above 60%. Some net sales highlights then. Net sales increased by 21% and organic net sales by 25%. And the major growth drivers are still existing customers, but also new customers and price adjustment. And the divestment we did last year impacted subscription negatively by 7%. And the organic growth in subscription was 23%. In business platform, which is responsible for our core SaaS offering, we had a growth of 18%. And within financial services, which is responsible for our payments and financial offer, we had a growth of 34%. On the right, you see the product per revenue type, our largest product per revenue type. And our product invoicing that stands for just above 20% of our subscription revenue had a growth by 30%. And the second largest product within subscription is bookkeeping. Invoice service, where we help our customer to send invoices, send out reminders and also collect money, stands for almost 30% of the transaction-based revenues. We have the growth of 29%. And the second largest there is capturing supplier invoices. Within lending based, our factoring product stands for over 75% of the revenue. And the growth there was 43%. And the other product there is corporate loans. So on the income statement, I've highlighted some non-recurring items. The warrants received in mint, which are expected to be converted into shares now in the second quarter, were revaluated and led to a positive impact of 17 million, where 5 million impacted the other income, and the other 12 million impacted the financial income. We also had some cost for advisory service related to the public offer on the same level, 5 million. So in taken together, we have a positive effect of 12 million on profit before tax, but on operating profit and on EBIT margin, we had no effect on the one-off items. On the balance sheet, I've highlighted the growth in factoring, and we now have one row for the factoring, as previously reported as purchase receivables and receivables factoring. And on the cash flow, highlighted also there that factoring continues to grow, but also highlighted the free cash flow adjusted for lending and acquisition, which grow by 57% in the first quarter. So looking at some business highlights, these two numbers represent our focusing on offering financing and payments as a part of the core flows in the platform. So looking at the first number in March, we surpassed 500 million of monthly value through our factoring product. And as you saw, the financial service is currently the fastest growing business area within Fortnox. And on the right, we have more than 100 million in spending that was carried out using our business card in March. And during Q1, we had more than 8000 customers using our business card. And here's another number that more reflects our focus on usage and users, where Fortnox ID now has more than 800,000 users. And to describe it briefly, Fortnox ID is a personal single sign-on solution for all products and all the companies or organizations within Fortnox and linked to the same user. And it offers a smoother experience and higher security for the user. But it also contributes to a seamless experience when you are inside the Fortnox ecosystem or the Fortnox platform. So the user perceives our offering as more as a one Fortnox and workflows instead of different isolated products. So to summarize the first quarter, given the macro environment, we once again proven our sustainable business model will 25% organic growth. In 2020, we set two kind of aggressive targets, and now we reach one of them by doubling the average revenue per customer reaching 304 Swedish kronor. And we continue our focus on the strategic changes aligned with the new direction. And we continue to work towards improved user-friendliness, increased usage, and for one Fortnox with seamless workflows and including them payments and financing as a natural part of those workflows. Oh, thank you.

So thank you so much, Roger. It's time for questions. And as I mentioned, you can dial into us by using plus 468-559-31337 or send them to us here in the chat. So do we have any questions? I think it's this, I don't have any in my computer here. Maybe this will be the fastest quarterly presentation in our history. Give them a few more minutes, but maybe... Yeah, we have Ahir actually. You are Kim Gunnell. Good morning. Can you hear us? Good morning.