Lime Technologies AB (publ)

and warm welcome to our Q3 call. My name is Thomas Davoud and I've been at Lime since 2017. Started as CEO in the beginning of this year and with me I have Anders.

Hello, my name is Anders. I've been at Lime since September 2024 and I'm the CFO.

And as usual, feel free to write any questions in the chat and we will try to answer them in the end of the session. So the agenda for today is to start with an overview of Lime and the sum up of Q3. We'll go into the order intake, we'll look at the revenue, the profit and we'll end up with a summary. So starting with an overview, we have always been running line with a long-term perspective and that has left us with this fantastic footprint. In 25 years we have grown on average 18% per year with an average EBITDA margin of 25% and of course that's something that we are really proud of. And what I would say is the biggest reason why we have managed with this year of the year is our people and our great corporate culture. And we know that in order to win in the competitive environment that we actually play in, we need to be a little bit better in everything we do. And we believe in creating a culture that is great at combining high performance with a lot of care. And it doesn't matter the times, if it's been good times, bad times, our goal has always been the same, and that is to help companies become great at sales and customer care so they can help their customers in the best possible way. We create value by being a true partner to our customers, by being local, close to our customers, and combining our software and expertise. And we have two revenue streams, which is the software and the services and the ARR or our annual recurring revenue, which comes from the software stands for around 68% of our total revenue. And we've done it for quite many years now since 1990. And we scaled our business into several markets starting in Sweden, we've grown into Nordic. And since 2020, we entered Netherlands and since 2021, also in Germany. Now we are present in seven markets, 12 offices, and we have almost 500 employees. If you look across our products, we have more than 7,500 customers and over 1 million users. So let me give you a sum up of Q3. If we look at the numbers, we have 11% aero growth, 26% EBITDA margin, and 11% revenue growth. On the first bullet, I'm glad that we have been moving in the right direction. We are on the 11% error growth. The EBITDA margin is on 26.3, which can be compared to 25.0 in Q3 last year. And Expert Services, our consultant department, they keep growing with a good utilization rate. So I'm glad we're taking steps in the right direction. However, we are not satisfied. I still believe we have more to give and more potential. On the second bullet, we've continued to make investments in our AI offering. And I'm happy to say that all our products now have AI capabilities to help our customers be more efficient. We rolled out AI Assist, which is like an assistant where you can ask questions about the database where you're in. And we roll it out to all our users in Lime CRM. And we are also rolling it out in the autumn to our sport admin customers. In Lime Connect, we've had an AI chatbot for many years. And now we also have a voice agent in beta. And that opens up a new market for customer communication as well. We also have LimeGo Agentic, a fully agentic product and that we have out on the market now with very positive response among customers, both new ones and also some of ones that have migrated on the existing customer base. On the third bullet, I'm glad to see that we grow quicker outside of our home market. That shows that we can export our offering to other markets and also we have a lot to grow in. Norway has had a good quarter. And the fastest growing market for whole lime is the lime CRM part in Germany, where we have great traction and we continue to grow deeper into the utility vertical. And lastly, a few words about our position in a world where sauce is changing faster than ever. So we are the European verticalized platform for business critical customer processes powered by AI still unmistakably human. Our position has always been to be a partner to our customer. That's why we have decided to keep everything in-house and own the whole chain from development to sales, consultancy and support. We help our customers become better at customer care with local people, experts who speak the language, who understand the complexity in the verticals and who know the regulations and nuances on the specific markets. It doesn't matter if it's Finland, Germany or any other of our markets. That's always been our key factor to win. And in a world where software development becomes faster and cheaper, this is more important than ever. Another upside, as the world seems to change by the day, is our size and our culture that are more important than ever. We are big enough to have built up customer relationships, that we have a lot of experience, we have reference customers, but we are small enough and we have a culture that makes us extremely agile and fast-paced. Being from Europe, on the other hand, has not historically been a reason for customers to buy from us. Choosing US software has been the most common thing to do in Europe. And it's changing rather quickly. And it gives us a nice tailwind. Data sovereignty is talked more and more about in our customer dialogues and procurements. And that's something we clearly see in our analysis of customer calls as well. And now, as most of you know, our three biggest competitors, they are from US. So I believe that this can help us on our growth journey going forward. All in all, we have the same position as we've always had, only now it serves us better than ever. So let's have a look at the order intake. If we start to look at our customer concentration, you can see that it's really low. Our top customer stands for less than 1% of our revenue, our top 10 for less than 7%. And if we look into the deals starting with LimeCRM, we have yet another Stadsverket that's come in this quarter with Stadsverket Vismar. We've also grown in the utility segment in Finland together with Alva who have expanded their solution. On the membership segment, we welcome Comaskelegium as a new customer. In the wholesale segment in Finland, we welcome Telatech and in Sweden, Universal Power Nordic. in the real estate segment, among others, a commercial real estate solution with Holger Blomstrand. Going over to Lime Connect, we made also utility deal with an existing Lime CRM customer, which is Stadsverket Vitten, but they now also add the Lime Connect product. And we continue to expand with existing customers here as well, for example, with Porsche and AXA, which is really nice. In LimeGo, as I said, LimeAgentic has had a good reception in these last week and months. And we have a customer that's been with us since 2018 called Tickster, who have now gone over to the agentic solution and really likes it. And we also welcomed a new customer, Abitzhälsa, that are also working in the agentic platform. On the sport admin side, we have many new organizations, among them Fisksätra IF and Önnereds HK. And we already have a lot of organizations in the top two football leagues in Sweden. And we continue to expand here with a new league partnership together with Etan Futboll. So with that, let's go into revenue. If we look at the overall growth, we reached 11% in Q3 or 10% organically. Over the last 12 months, it's 9%. If we break it down by geography, Sweden grew 7% in Q3 and the rest of Europe grew 20%. And as I said before, I'm happy to see that we continue to grow faster in rest of Europe compared to Sweden. Now we've been on similar numbers two quarters in a row. It demonstrates that our vertical strategy and our product offering resonate beyond Sweden, which is critical for our long-term growth ambitions.