Fortnox AB (publ)

Good morning everyone and very welcome to Fort Knox Q1 2025 report presentation. My name is Mian Nordlander and I'm head of investor relations. With me here in the studio today in Växjö I have our acting CEO Roger Hattelius. The agenda for today is that we will start a hearing Roger presenting the Q1 in Ambus, 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 -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 and 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 and a little bit lower than previous year and in Q1 last year we acquired Bordeaser 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 Rura Fotnaks 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 and 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 customer 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 of 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 and EBIT of 246 million and EBIT growth of 33%. We think that it proves a sustainable business model. And looking at rule of FOTNOX 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 the growth of 18% and within financial services which is responsible for our payments and financial offer we had the 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 had 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 evaluated and led to a positive impact of 17 million where of 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 warm-up items. On the balance sheet I've highlighted the growth in factoring and we now have one row for the cash flow and one row for the 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 Fort Knox. 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 8 000 customers using our business card. And here's another number that more reflects our focus on usage and users. Web Fort Knox ID now has more than 800 000 users and to describe it briefly Fort Knox ID is a personal single sign-on solution for all products and all the companies or organizations within the Fort Knox 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 Fort Knox ecosystem or the Fort Knox platform. So the user perceives our offering as more than one yeah more as a one Fort Knox 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 with 25 percent 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 Fort Knox 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 in to us by using plus 468 559 313 37 or send them to us here in the chat. So do we have any questions? I think it's just I don't have any in my computer here. Maybe this will be the fastest quarter presentation in our history. Give them a few more minutes but maybe yeah we have I here actually Joakim Gunnell good morning. Can you hear us? Good morning.

Good morning I can hear you now. Great

great great to hear from you.

Lovely likewise so congratulations on reaching this five year targets ahead of time but I mean it's impressive to see grow at this scale and in this recessionary backdrop right but in all honesty that target didn't include price hikes nor M&A at the start right?

We didn't set up the goal in that detail so we had a goal of the two in combinations of course the number of customers and the revenue per customer is important for the growth so it wasn't in that detail.

All right anyway that wasn't really what I wanted to ask about. I just wanted to hear your just thoughts Roger with regards to what extent you envision being a private company will allow Fort Knox to really accelerate and take the next step whether that is to say international expansion or to invest more to grow even faster which perhaps a public setting is not that forgiving to.

So we are here running our business plan as for now and we have our own so we haven't discussed that or thought about that so much so we are we think that we have been able to do what we wanted to in this context so yeah let's see. So no I won't comment I haven't we haven't discussed it or.

And of course we continue to work and making Fort Knox and our customers even more successful and of course creating great companies out there so the work continues right?

Yeah great and then just one more question from my end from a product perspective you highlight here in your CEO letter the strategic importance of payments and financing and we are seeing this coming through into numbers but can you just highlight where your attention will primarily be over the coming year to really realize the opportunities especially within payments?

Yeah so we think that it is a natural part of the workflows where our customers are so for example in the supplier when you receive a supplier invoice we have great solutions for that we make the capturing of data automatically we do the bookkeeping automatically we have an improvement flow that is easy to use but we have haven't done that much on the payments that is the next step in that in that flow so we believe to get those workflows seamless we can add much more value and we have the then the transactions and the data in real time with which we can use them to bring back value to our customers so in more than one flow the payments is a natural part so that is why what we are trying to aim for.

Understood and this is the last waltz as a private company I wish you the best of luck on your future endeavors thank you. Thank you.

Next on the line we have Mark from Morgan Stanley good morning Mark how are you?

Good morning Mia, good morning Roger. Can you hear me okay? Yes. Perfect well thanks for having me on and congrats on a good first quarter I've got a few questions if that's okay. The first one just on the the EBIT margin result which was I think quite a bit stronger than expected for the first quarter versus consensus it looks to me like that was mainly driven by lower employee costs look on my maps to be about 11 percent year on year that's quite low growth versus history on that cost line so could you just give us a few more details on what was driving this? Are there any one-off factors to be aware of in the first quarter and how should we think about employee costs to the remainder of the year please? That's the first one we got a couple more after that.

Yeah we have a smaller growth in number of employees but it's nothing that we have been driven so we are still employing we're still growing maybe some since we did the reorganization last year so to some extent that have been a few yeah fewer employments during that period but otherwise we are growing as we have done before.

Okay that makes sense and appreciate the disclosure on the Fort Knox card very impressive numbers I think if I remember correctly in the past you've said you make about one percent on card volumes so at a hundred million krona per month that imply kind of annualized run rates of about 12 million krona per year. Firstly is that the right way to think about the the magnitude of revenue contribution and could you just tell us how fast those volumes are growing either on a year on your basis or month on month basis just to kind of help us gauge how fast that's growing?

So yes you're right with the calculation on the revenue side and we have been yeah we have had I think for one year or a little bit more but it was first in October that we had the full solutions so the accounting firm also could use it with their full improvement flow and so we have had a stable growth and we believe that it's still great potential in that product.

Yeah and we're focusing on teaching our customers the benefits of this card and of course that takes time but we feel secure that this will be very successful and again that's why we wanted to show this number how it's growing from a steady base.

Perfect and then just finally kind of on the private offer in the press release there's a few mentions of international expansion something that I guess hasn't been discussed that widely in the past. Has there been any change in strategy here? Is this something that you're exploring in the next business plan period? Any details would be helpful in terms of how you think about that going forward?

No of course no details we are in the middle of creating the new business plan but of course it's been we're looking at different opportunities and we have been looking at M&A's as well during this business period but as said during this period we have seen greater potential within Sweden and for the next period we'll

let's see. Perfect well appreciate the color congrats on the core and thanks very much.

Thank you.

Thank you. I have a question here from the chat. Rorge can you give an update on the from EQT and the next steps and do we anticipate any delays regarding regulatory approvals required?

So no I can't comment on that offer that's up to the consortium so no information no comments.

And just to remind everyone if you have questions regarding the offer there is a website -offer.com you can find that address on the website as well so yeah please talk to them regarding this. Let's go to next question. Have you said anything how many cards have been issued to your customers since the launch? I don't think that's any information we have given right?

No so we're giving more than 8000 customers using the card in Q1.

Thank you. It looks like that was it for today. Thank you everyone for listening in to us here this morning. As always if you have more questions feel free to reach out to to me and our departments. I hope you will have a very good day and thank you very much.