Vertiseit AB (publ)

Hi, everyone, and very welcome to this investor earnings call from Vertisit. We've just released our Q3 interim report for 2024. My name is Jonas Lagerqvist. I'm deputy CEO and CFO. And my name is Johan Lind.

I'm CEO of Vertisit.

Welcome. So today we released our interim report for the third quarter and we'll elaborate on this as well as a couple of other topics. So during the call you can ask questions in the Q&A function. in the video conference, and you can also use the raise hand function if you wish to speak, and you will be let in during the Q&A session at the end of the call. So, During this call, we will look into the financials found in the Q3 report. We will also elaborate on some business highlights during the quarter. And we will also go into a little bit more into detail on the visual art acquisition that was performed after the end of the third quarter on the 2nd of October. So in today's announcements with the report, we can reveal that we now have reached an ARR of 187 million Swedish crowns in the Vertisit group, which is an organic growth of 21% compared to last year. When including visual art, we are now well above 250 million Swedish crowns in ARR, meaning that we have ticked off our current long-term goal of ARR exceeding 200 million by end of 2024, for which we are both proud and happy. And during the quarter, we had a 21% organic ARR growth in terms of in fixed currencies. Net revenue was down 50%, which was fully attributable to lower system sales during the quarter, which is in line with our strategy to expand our collaborations with partners when it comes to hardware sales. And despite this, we did perform the most profitable quarter in the company's history, both in terms of absolute numbers and in terms of margins. So we have an adjusted EBITDA of 23 million, meaning an EBITDA margin of 28%. And for those of you who have followed our new long-term goals, which starts in 2025, we will be measuring our profitability as cash EBITDA, which for this quarter came in on a margin of 22%. And by the end of the quarter, we did repay all our financial external debt, meaning that we were cash positive, negative net debt, but we had somewhat less available liquidity than last year, but also no external debt. During the quarter, we had a strong annualized growth and a share level, which was very much under control on a low level. Our SaaS metrics is pretty much in line with previous quarters and in line with our own expectations. We had a low share during Q3 and a gross growth of just over 23%. Net revenue retention is 111% on an annualized basis, which is well above our financial target of 100%. And we keep increasing the average revenue per brand, which is also in line with our strategy to focus on larger customers with more growth potential.