Vertiseit AB (publ)

Hi, and welcome to this financial update for Vertisit. Today we have disclosed our quarterly report for the first quarter 2024. And due to today's capital markets day, this is a recording. There will be no Q&A session by the end. But as always, you're always welcome to contact me or Johan and get your questions answered. So I'm Jonas Lagerkvist, I'm the CFO for Vertisit and with me I have... Johan Lind, founder and CEO of Vertisit. So today we have disclosed the quarterly report for the first quarter and on this financial update we will go through the quarterly highlights of Q1. We will go through the priorities for the year that we are in, for 2024. And we will also elaborate on Vertisit's new long-term goals, which were disclosed last night, and will also be presented more in depth on today's Capital Markets Day. So, please, John.

Yeah, so we continue to grow in a really steady pace towards our goal. The goal that are already in places that we aim for 200 million ARR by the end of the year. The report now in Q1, year over year, we grow our ARR with 18%. And if you look at the pace of growth in Q1 annualized, we actually grow at the pace of 19% in Q1. really steady and strong strong result for a q1 so Real really happy about the progress that and the growth that we have in the market even in like a tougher climate than It has been before So looking into some operational highlights so of course Now we have a completely different infrastructure in place when it comes to enabling scalability and global reach. We focus a lot of growth with sell through partner and definitely we have delivered on that in Q1. I think I mentioned some projects, especially like in the metro in Dubai, for example, which is a sell-through partner in this quarter. We also have another organization in place to ramp up the IXM grid project, which the project now has a name. It's the unified backend initiative that we now focus a lot of our efforts into and we will elaborate on the strategies. during the day in the capital market session. Yesterday evening, we also launched new long-term goals for the period from next year and onwards. And we will have a sneak peek on the goals later in this presentation.

So during the quarter we had an ARR growth of 4.4%, which annualized is a growth rate of 19%, which we are quite satisfied with and is well within what it takes for us to reach our long-term goals. We continue to increase our profitability, which during the quarter reached 25% on EBITDA level. And if we look at the last 12 months, it amounts to 14%, meaning that we keep increasing our profitability. um this leads to that uh that we also have an improved cash flow uh which have made it possible for us to uh to lower our lower our debt during the quarter so we go from 116 million in net debt to uh to 94 meaning that we're on we're on the leverage level of 1.3 yeah One of our financial targets is the net revenue retention, which basically means that reflects our capacity and ability to grow on existing customers. And there we had a net revenue retention of 103 during the quarter. And looking at it for the last 12 months, the level was 109%, which we are also satisfied with. So, and looking into the SaaS metrics, the growth was slightly lower than last quarter, 4.4% in the quarter compared to 5.5 in the last quarter of 2023, but still on good levels. We're keeping the net revenue retention on a stable level And increasing the average revenue per brand, meaning that the customers that we churn are smaller customers and we grow on our larger customers, which is also in line with our strategy of improving scalability and global reach. So, and the slightly higher churn during the quarter, which is like a normal variation, but looking at it on a 12 months perspective, we're still on very low churn levels and are comfortable with that.