Litium AB (publ)

Hej alla tittare och lyssnare, klockan är 14 och det är dags att köra igång. Mitt namn är Martin Belenius och är vd på Litium. Det här blir min första kvartalsrapport då jag tillträdde mitten av februari i år. Jag ska göra mitt allra bästa för att hålla tungan rätt i munnen. Och med mig i studien har jag vår ännu nyare CFO, Petter Blyd.

Thank you Martin. My name is Petter Bli. I have been employed in Lithium since April 1st. So very new as I said. I had a short period before as an interim consultant. I have a background since almost 15 years ago in similar roles. Where I have actually worked on the customer side in relation to Lithium. So in many different e-commerce companies. And the majority of those companies have primarily had the goal of growing and scaling, just as we want to do here at Lithium. So I'm incredibly excited to get the chance to, together with Martin and the rest of the team, grow Lithium to new levels.

And for those of you who don't know me, again, as I said, I'm a new CEO since two months ago. and came last from a role at the SaaS company Medius as global CRO. I think this will be a little repetition for some, new for others, but I think we'll start with a short description of what we do here at Lithium and what actually makes us successful on the market. Then we go into the Q1 report following a shorter preview.

Okay, let's go.

What do we do at Lithium and who are we? For those of you who know us, I know that Lithium is a tech company in e-commerce. We manufacture and sell softwares for digital sales of products all over the world. Our mission, our entire purpose and existence is to help companies succeed with their digital sales. Our product is a so-called e-commerce platform that contains everything you need to drive advanced digital trade. It also makes it so that our customers can effectively sell the value regardless of the number of markets and regardless of the complexity in the product you sell. Our vision is that we at Lithium will be the clear choice in Europe for B2B customers when they are going to evaluate this new e-commerce platform. And in our eyes, we deliver a perfect mix between time to market and flexibility. Today, we have more than 200 customers who use lithium on more than 150 markets around the world, and we have achieved this together with our fantastic partners. Our business model is SaaS, and 100% of our revenue is recurring, and that is something we are very, very proud of. And as you can see in this picture, there are a lot of customers who have discovered and run their e-commerce solutions on the Lithium platform. I also think it's worth mentioning that through the platform, the value of the business flows between about 20 and 30 billion SEK annually. And as you will see later in the presentation, these customers will just get more and more. Let's jump into the report and start with some highlights from Q1. Revenue is up 6.7% compared to the previous year's Q1. This is our best Q1 ever, and better than planned. But there are still enormous opportunities to accelerate growth. It is still too low, but with our focus and the strategic initiative on growth- that we invest in, then this will, as SAAS Economy actually works, show up later this year in Q3 and Q4. And on the subject of growth, it is also very happy to be able to tell that we have had our best quarter ever when it comes to new technology acquisition. It is of course very satisfying that the market really appreciates our product. If we look at EBIT, it is also a better plan. The main reason for negative EBIT is, as I wrote in the video, that we worked very dedicatedly with migrating customers who are on older versions of lithium during last fall. When we do this, we also write about the agreement to match our current SAS model. What happens then is that here and now we get an income drop, when some of these customers were on a different type of deal and business model, where you took the income upfront. This is also of course a very moderate choice by us, and it is also a great advantage for customers to come to our latest version of Lithium. At the top of all this, we also have, as you know, a VD shift and recruited a new CFO. Given all this, we still deliver better than planned, but thanks to increased revenues. And then above all, as you see here in the presentation, mobile revenues. All 124% up compared to Q1 2024. Then you also have to take into account that this increase will come when the environment is worried. We have a USA that talks nonsense. It is also very, very nice and a confirmation that our model works. Finally, Very happy to have Petter on board. With his experience, he will contribute extremely much to the journey that Lithium is now on. But before you hear from Petter, I want to show a few more slides. And it's not just that we've had a very nice inflow of new customers. We've also had a lot of people who have gone live with our platform. I can't say enough how important it is for our customers to quickly appreciate their investment in Lithium. Time to value will become more and more important and my understanding is that patience will also grow more and more when it comes to all too long implementation projects. What you see on this slide is an axis of customers who have gone live and customers that we have actually signed in the queue. Finally, before I let in Petter, I would also like to make a statement for our annual report that we carry out here at Lithium. Last week we released our report Nordic Digital Commerce in B2B, which shows that digitalization is now deeply anchored in the B2B market. A full 83% of companies use digital channels for sales and almost 70% expect continued growth. What we also see is at the same time a clear shift in focus from internal efficiency to increased customer service, more sales and AI-driven initiatives. And I think this just confirms the strong growth potential we actually have in our market and that Lithium is very well positioned to meet these increased needs of scalable, data-driven solutions.

And with that said, I'm going to let in Petter again.

Okay, Petter.

Thank you, Martin. If we start the financial part of the presentation with looking at our annual recurring income, our ARR. In this report and the graphs that we show, this is a retrospective key number. It is the revenues of the last 12 months. So this nice renewal that Martin mentions here, which we are very happy about, of course, De har därför en fördröjning på upp till 12 månader att få effekt när vi tittar på de här siffrorna. Och med det sagt då så är vi också väldigt glada över att vi har en ARR som har gått upp i varje kvartal sedan väldigt lång tid tillbaka som syns i den här grafen då. And in Q1, we went over 73 million. We reached 73.3 million. And the last quarter, we had an increase in IAR at 3.1% compared to the same quarter last year. And we have a big focus on growth, as we mentioned earlier, and a very nice new knowledge acquisition in recent months. So we have a very strong belief that ARR development will be far better than these 3% that we have in the report quarter. But as I said, with a certain increase in the effect of these new numbers. Moving on to total revenues and gross margin, the blue stacks describe our revenues, Q1 last year to the left and Q1 this year to the right. The yellow dots mark the gross margin for the period. The net turnover, as Martin mentioned earlier, rose by almost 7% towards 2024. All of our turnover is recurring. And 82.6% are fixed income. And as has already been mentioned, we have a very good growth on our moving income, which was up 124% compared to previous years. And here we have a very strong belief that the moving income will continue to increase forward, just like the fixed income. The gross margin is going down a bit compared to the previous year, 68.3% in the quarter versus 68.9% in 2024. These fluctuate a bit between the quarters. But what we see here, if you look forward, is that our new serverless technology will be much more cost-effective. We will lower our operating costs very clearly. And that will start to give effect as we migrate more customers to our latest platform, but also when we get new customers who are on our latest solution with significantly better margins. So in the future, we expect a positive trend here over the coming years and that we will work up to higher levels than we have seen historically in the company. As for the other costs, our OPEX and EBITDA, we have the blue stacks that show the OPEX and the yellow dots the EBITDA percentage. The total costs have increased somewhat in the quarter if you look at last year and the reasons behind that Martin has already mentioned. We have a VD shift that will cost us up to the third quarter of the year. But on top of that, we have a cost level that has gone down markedly in recent years and it is now very stable and now we see that we are on a good basis and have a very good potential to scale the company forward. EBITDA is just under 4 million, or roughly 20%. It's a small reduction compared to previous years, but the basis is actually the shift to OPEX, as already mentioned. And if you look at it in total, we see that the underlying salary, regardless of these input costs, increases the underlying salary in a daily business continuously. Sista sliden från mig gällande investeringar och kassaflöde. De blå staplarna är investeringarna i vår produkt och de gröna representerar bolagets kassa. Vi ser här att vi ökar investeringarna lite grann mot föregående år. Vi fortsätter att investera i vår produktutveckling och vi kommer att fortsätta göra det. Det som vi primärt investerar i är i funktionaliteten och användarvänligheten av produkten. Positivt kassaflöde i kvartalet på 600 000 kronor ungefär. Det är en klar förbättring mot föregående år när vi samma kvartal hade ett negativt kassaflöde på ungefär lika mycket. Och vi går ur kvartalet med en kassa på strax under 8 miljoner. Det var allt för mig gällande de finansiella talen så jag bollar tillbaka till dig Martin för en summering. Tack för mig!

Thank you, Petter.

There are a few slides left to talk about. If we look a bit in the binoculars, we feel a strong optimism, despite the uncertainty on the market, created by the previously mentioned bribes and anxiety around the world. And some reasons for my optimism is that we have a state-of-the-art product that we will continue to invest heavily in, as Petter just mentioned. We will above all invest in AI and use availability to make the product even better. According to me, we also have a very attractive business model. We grow together with our customers. If it goes well for our customers, it also goes well for Lithium. Last but not least, for those of you who have not read our service report, Digital Commerce in B2B, there is a great opportunity for us at Lithium here. We have a very good product fit and the trend to digitalize its sales, it just increases and we see that it will be so even in the future. And here we at Lithium see a great opportunity to take the lead. In summary, if I were to sum up this presentation, Lithium has a very strong foundation to stand on and we have a good quarter in our back. We will focus on growth. We are coming from our best quarter ever since the new art acquisition. Time to value. This is very warm in my heart. I am completely convinced that it is more likely that customers will be pleased if they get a quick ROI from using our products. Our product investments will largely be prioritized for this single goal. Then finally, our mission is to become the obvious choice in Europe for B and B customers when they are out and looking at a new e-commerce platform. It's a bit there. The journey has just begun, but I am 100% convinced that we will reach our goal. With that said, I just want to thank you for your interest and commitment. Till alla er som har frågor kring presentationen så tveka inte att kontakta oss och kontakta oss gärna på ir.litium så tar vi upp tråden där. Jag vill även rekommendera att följa Litium på LinkedIn och följa vår investerarkanal på webben. Det är det allra bästa sättet att få the latest and the greatest från oss på Litium. Stort tack!