Oneflow AB (publ)

Okay, good morning. Welcome to all of you to this earnings call for Q1 2026. Okay, so my name is Anders Samnes. I'm the CEO of the company and next to me we have Nathalie Hjelve, CFO of OneFlow. And as always, please use the Q&A button in Zoom and we'll get back to the questions in the end of this presentation. And please don't use the chat. OK, first, some highlights for the quarter. ARR keeps growing and we ended at 194.2 billion in Q1, which is up 80% year over year. If we look at the total CLM market, it has been growing for the last years in the range between 10 and 15%, depending on which analyst you ask, but in the range 10 to 15%, and last year it was close to 10%. So we are actually growing somewhat faster than the market, so we take market share. Also considering the sentiment that's been around for the last few years, it's not that many companies in the Nordics that keep this growth in this market. So we are quite happy in one flow. Net new ARR reached slightly north of 11 million for the quarter, which is one of the highest we've had in the company. ARR per FTE, important KPI to measure our efficiency of almost 50% year over year. Net and gross retention. 97 and 87 percent, which is up one percent on both actually since Q4 last year, and EBITDA 16 percent and EBIT minus 12 percent. I know that many of you like to talk about the rule of 40, So if you take our, and there are different ways of calculating that one, but the most common way seems to be the ARR growth and plus the EBITDA margin. So, one year ago, if you summarized our AR growth and in the terminology one year ago, we had 1% and today it's at 34%. Where would it be next year? We'll see. Okay then, so there are always so many people joining this call, so we just like to take one slide and just very on a high level describe what we are about. We work with contracts, the full lifecycle, contract lifecycle management. pre-sign, sign, post-sign. You can do all the steps in the process in one flow. You can build templates in a very powerful editor. You can collaborate in real time. You can manage your contracts and analyze the contracts. And of course, we have a lot of ai support throughout every step in the process everything from writing highlighting improvement areas highlighting risks in the contracts give you suggestions for how you can improve the content uh you can summarize you can even describe or make templates for how you want us to summarize the contract what data to focus on and so on and you can you can extract the data with ai you can you can analyze all your contracts throughout all workspaces with ai to kind of find out the For example, contracts that deviate from the template or if you want to find out if some contracts are missing a clause or if a value is below or above X and so on, it's a really, really powerful AI capabilities across all steps in the process. I'm not going to talk much about AI today, but I would just like to say that since there seems to be some, at least some in the market, that feel that we talk about the death of software. To me, this is just the biggest bullshit. Can I use that word? I think it's fine. Today, it's a Friday.

It's a Friday, exactly.

This is an opportunity. This is the beginning of SaaS 2.0. And we are super excited about the times we're in. And I speak on behalf of everybody in the company. And I think the ecosystem of SaaS entrepreneurs as well. So this is the beginning of SaaS 2.0. So it's really, really exciting times. Okay, then. So I'm not going to go through all the product releases we had in the quarter, but I just picked out a few highlights. We had a really, really upgrade on our search capabilities. So you can do really powerful searches across all your workspaces to find whatever you want to find. In a second, we launched a whole new Document overview list, which is a very central part of the application. You can customize it in so many ways and you can see contracts. We get a much bigger overview of the contracts today than you could a few weeks back. AI extract has no more data points, is smarter. You can extract stuff that you could not do before and combinations of stuff. uh we've always had many currencies but the new thing here is that now you can have many currencies in the same workspace in the same database and you can combine them so that's of course powerful for companies that are of some size and have operations across different countries um we One of the strong USPs with OneFlow is that you can build an interactive web-based contract and not this kind of PDF paper experience and we had a huge upgrade on our image section this quarter as well which is can make your contracts or offers look even more stunning. It can be more kind of fulfilling to the whole experience. Data export, we've had that for many years, obviously, but now we can, at a much more detailed level, define how you want to export your data, what kind of data you want to export and so on. Tax fields, we did a huge upgrade on that as well in the quarter. Now you can, to a much more detailed level, define how you want VAT or whatever tax field you have to look like in a product table. that can be quite complicated because companies want to expose this table in so many different ways. And there can be multiple tables that you have to summarize and so on. So this is actually a quite big thing. And last but not least, Flex HRM, a new integration that we launched. And lots of other stuff I'm not going to go into today, but this is just some of the highlights for the quarter. Back to some numbers. Net new ARR was up almost 100% since Q1 last year. So we had a really strong start of the year and one of the strongest quarters ever actually, if you look to the right. We have to go back to Q1 2024 to see a quarter that was actually the all-time high we had. And just an interesting thing to note about that. If we compare this quarter, Q1 this year, to Q1 in 2024, gross new ARR was exactly the same in those two quarters. What makes them different is the churn, which has been higher over the last few years and quarters and even last quarter. So the churn was higher in Q1 this year compared to two years back. However, the churn is now... getting falling. We'll talk more about that in a few slides. So we have focused a lot on efficiency over the last few years, ways of working and the We actually achieved this with fewer sales reps this year than we had in Q1 last year. So almost double Net New Year R on a lot fewer sales reps because we are more effective in ways of working. We have done many changes in our go to market motion and ICP. So we are actually faster in many ways today. Yeah, I think I'm gonna move on to the next slide. We had an ARR growth at 18% year over year, ended at 194.2. And if you include April, it was at now 195.3. We have guided the market that our target is to achieve at least 30% growth and also to become profitable without raising more cash. However, we've also said that we will not focus or we will prioritize profitability today over growth and accept that we will not be able to reach the growth target in the short term. So still that stance, we're going to reiterate our targets. We focus really hard on becoming profitable. And once we have achieved that, we will be able to put some more weight on the growth again. And we strongly believe we have a plan. on how we can exceed 30% growth again. So obviously we have been through a phase for the last two years where we have cut some costs in several rounds and we have trimmed the organization. And when you go through stages like that, there are always ripple effects. So it's hard to maintain a really high growth and increasing growth in such an environment. But now this is behind us and a lot of things is actually pointing in the right direction again. What also is going to obviously at some point help to fuel our growth is that the market has been for the last few years a little bit tricky. At some point that will change, we believe. We are making a lot of improvements in the product. We have a new product strategy, which we are super enthusiastic about. are filling the gaps we are making customers more happy we are solving new problems for customers and we also made some huge changes in our go to market motion and and icp and also a proof that we are actually point moving the needle now in the right direction is that we actually almost double net new ARR in Q1 this year compared to last year with a fewer headcounts because we are working in a smarter way. ARR per FTE up almost 50% year over year. Internally, we talked a lot about achieve more with less. It is a good mantra that we believe strongly in. That's actually what excellence is about and we are almost growing at 20% almost and almost 50% efficiency improvement in combination that's quite strong I would say in this market so why this is important this KPI I mean we are an ARR first company our revenue is 99% recovery 99% recovery cross margin at 92% our main cost is salaries salaries salaries salaries and so this should actually give a very good idea on what on on when we will break the magic point of becoming profitable um and the pattern here we started with a quite low uh it's been like like half a million and seven hundred thousand so this is quite common in sauce because uh because in sauce the costs come up front you need to build something amazing before you can sell it but the beauty of sauce is that it is recurring so yeah a very common pattern but now we are strongly moving up in the right direction um Also, two of our favorite KPIs, net and gross retention. Gross retention include churn and contraction, also called downgrades. And net retention is a catch-all. That's churn, contraction, and expansion. We did improve net retention by 1% in Q1 versus Q4. And we did improve cross retention with 1% in Q1 versus Q4. What we also can say, or we brought in the report today, this morning, is that we do see now that the trend has shifted. The churn is going down. We believe that Q2 will be even better and that we know are going to move both net and gross retention up and up and up. If you look at some of the customer cohorts that are within our ICP, the net retention only today is way above 100%. So we have been through a phase where we have made a shift. We had a huge bucket of companies that did not fit as well. And now this bucket has become much smaller. And we believe that now it's going to be up, up, up going forward. So drivers for retention rate, obviously, when we are through this phase of becoming profitable, we can refocus our internal efforts, market fundamentals, product improvements, and what we talked about in the GTM. What we see is that The further away from the ICP the customer is, the higher churn rate we had and the lower expansion rate we've had, which makes sense obviously. So churn and expansion problems we've had is for customers that's far away from the ICP. We increased our paying customers by 8% in Q1 versus Q1 last year. And the ARPA went up 9%. And ARPA is average revenue per account. We can also disclose that we talked a lot about our GTM and ICP shift that we went through last year. In Q1 this year, we increased our ACV by 70%. Initial ACV. ACV is annual contract value. So the initial annual contract value increased by 70% in Q1 this year. The ARPA is the total customer base. So it takes more time to move that needle, but 9% is really, really strong considering that this is the total customer base. So why did we succeed to increase our initial ACV so much in Q1? Manufacturers, pricing and packaging is one of them. We are adding more value to the customers. We are solving new problems for customers. And it has a lot also to do with our focus internally when it comes to the GTM and ICP. And then, of course, you always have the renegotiation component and the more sales from our marketplace. Okay then, I think I will leave the next slide to you, Nathalie.