Oneflow AB (publ)

Okay, good to go. Welcome to this presentation of the year end results 2024 for OneFlow. My name is Anders Hemnes and I'm the CEO and founder of the company.

My name is Nathalie Hjelberg and I'm the CFO of OneFlow.

Okay, so as always, please use the Q&A function in Zoom. Then we will get back to your questions in the end of this presentation. And do not please use the chat box. Q&A is better for us. First, as always, some highlights for the last quarter. We closed in at 166.8 million in total ARR end of last year. End of Jan, we had 168 million in ARR. We're still growing quite fast, 29% year over year. Net new ARR was down 60% since last year, ended at 11 million sec for the quarter. An important KPI ARR full-time employee up 33% and getting close to 900,000 soon. Net and gross retention 101 and 89% in the last quarter and we had 4,100 paying customers in the last year up 21% since one year earlier. As always, we like to just take this opportunity and describe what we are doing at OneFlow for those of you that are new to our company. So we, OneFlow is a platform for handling contracts, all kinds of contracts, sales, procurement, HR, legal, and we work with the whole process from pre-sign, sign, and to post-sign. So you can build very powerful contract templates inside OneFlow. You can collaborate in ways which is not possible to do if you work with Word or Google Docs, you can control your templates in fundamentally different ways, what is allowed to do and not do and so on in the template, you can collaborate in real time, audit trail, fact changes, and so on, of course, sign sign is a small part of what we do, but but it's important, obviously, and post sign, you can manage your contracts, you can notify it on key events, you can filter, summarize, and work with the data inside your contracts. And throughout this process, we have a lot of AI features that will assist you, help you to write content and to analyze the content inside the contracts. so um and obviously integrations is very important since contract is a very central part of the process for any company we have a lot of integrations to crm and another systems uh the main Benefit of using OneFlow is to save time, obviously. You will save a lot of time in all stages throughout the process. And the pink bar here is how much time you can save in the pre-sign, sign, and post-sign stages of the process. So let's zoom in at some of the product highlights for 2024. We had a better release of AI review and AI insight, AI review. Highlight risks in your contracts and improvement areas and make suggestions for you. Super powerful tool, AI insight. is is a cousin of that. So we inside you can, you can get dashboards with overview of contracts based on data inside the contracts. And you can, for example, see cohorts on on notice period jurisdiction, if the consumer price index is less uh then x for example so you can make we we call it concepts you can make concepts and filter uh filter contracts uh smartly lots of ai insist improvements and assist is our tool for you can you can prompt if you need a clause if you need a contract template or whatever you can prompt it that we're going to give it to you on the fly super powerful approval flow is I would say the more advanced version of signing order, but with approval flow, you can do more. You can have different types of participants and more advanced flow in how you approve contracts before you, for example, send it to a counterparty. Inline comments, suggestions, redlining. We all know this from Word and Google Docs. Super powerful tools. We now have it also inside Monflow. fields of PDF is actually a little bit maybe dated feature, but we decided we had tried to not do this for many, many years because we are very much in found of HTML contracts. We think it should be live contracts. We don't think it should be PDF picture of image, but we decided still to do it because we have presence in uk and in france and um in those markets um docusign had a much stronger foothold and we needed to build that feature to bring in larger accounts and then bring bridge them over to our solution in the second stage so this was more like a tactical decision that we decided to bring it to to to build it for for especially you can and france that are a little bit behind when it comes to working in a modern way with with contracts Contract preview. Now you can see how the contract is going to look like on a desktop device, on a cell phone, an iPad, for example, for the counterparty. So you have full control of, of the look and feel for the contract, we redesigned our editor last year, much more neat, good looking, easy to use view. And we made tons and tons and tons of improvements on our integrations. We have a big team in Sri Lanka, 25 people working full time on our API and integrations. This is one of our core unique selling points. I would say with one flow we have, of course, many more, but this is this is one of them and might even be the most important because contracts is always a part of the flow. for any company. And we have very, very strong integrations at Bonflow. And of course, much more. This is just a snapshot of the maybe more kind of bigger feature launches last year. And of course, also, we had the big ISO project that was finalized last summer in June. So now we have ISO 9000, 14000 and 27000. So we also made a small change to our ARR formula from the beginning of this year. So it did not affect the 2024 numbers, but it affected the Jan number that we sent out a few days ago. And so from now on, when we book a churn in our ARR, we're going to book it on termination date. when the contract period is actually ending. Before, we took it in right away on the date that the customer noticed us about the charm. We've done a lot of research on this. We have talked to other companies in the space. This is how most, maybe even all companies that we have talked to at least, are doing it. It seems to be a standard way of doing it. Jan-Willem Wasmann, We didn't know one more change to the formula so before. Jan-Willem Wasmann, When we sign a contract we booked in the air are on the contract signed it. Jan-Willem Wasmann, But today now or starting now, we will book it in the air are. on the start date of the contract or the month where we push out the first invoice. So for example, we can sign a contract in January, which have started in April, then you won't see that ARR before in April. So how is this gonna affect our ARR going forward? I would say that, these two obviously the first one we turn is going to pull up the ar a little bit and the second one is going to pull it down and the total is effect is going to be roughly nothing i would say yeah yeah so it is going to balance out uh over time on the average in january we would have had half a million higher ARR if we used the old way of reporting the error. So it would have been a little bit better in general. But this feels better for us. So that's why. And it seems to be a more common way of reporting it, a more live ARR, so to say. So that's why we decided to do it. Okay. Net new ARR was down 16%. in q4. And if you look at the graph to the right, we did have actually have a quite good q1 last year, q1 was also okay. But then second half, something happened, we broke our beautiful pattern of constantly increasing our ARR quarter by quarter. And it This is also obviously below our forecast estimates. What is also worth to mention is that we are still doing actually very good on new ARR. So we had an all time high new ARR in Q4. But We are having a quite low expansion ARR and churn is very high. So churn picked up a lot starting in September last year. And then we had a peak. It went a little bit back, but still every month after September, the churn has been quite high in our, I mean, it's obviously all relative to something else, but how it used to be at least for one floor, not compared to other companies. and also expansion is lower. So that's why we missed our net new ARR goal because of expansion and churn. New ARR, all time high in Q4. We're still quite good at the acquisition part, first part. So churning, if assuming that the churn, it is still most these small companies that adjourn and we see a clear pattern it's it is small companies with a low adoption of the product um On the expansion part, market sentiment is still a little bit, I would say, sluggy. We have investments get paused, it takes time, cycle cycles are longer, and hiring is still slow. So that's why the expansion is not as it should be at the moment.