Vertiseit AB (publ)

Hi, everyone. Welcome to this earnings call. Vertisit has today released its year-end report for the fourth quarter of 2024. My name is Jonas Slageqvist. I am CFO and Deputy CEO for Vertisit.

And my name is Johan Lind. I'm the CEO of Vertisit. So as Jonas said, we are now really happy to present the year-end report. And it's also Q4 is actually the first quarter where we also incorporated the latest acquisition of visual arts into the figures. So this is the first time you actually see how does Vertisit look like stepping into the new year.

And on today's agenda, we will walk through the Q4 financials. We will highlight some business highlights during the quarter. We will also elaborate on the visual art integration which has been going on during the quarter. And we will finish off with a Q&A session where everyone can join in and get their questions answered. So please use the Q&A function in this webinar. And we will answer questions by the end of the presentation. Yeah, so We have today released the interim report for the fourth quarter, year-end report 2024. And ARR is reported at 275 million Swedish crowns, which is of course a significant increase both compared to last year and previous quarter, mainly due to the incorporation of visual art in this quarter's numbers. The acquisition was finished on the 2nd of October, meaning that this quarter is the first where we actually have consolidated visual art into Vertisage Group financials. By this quarter, we can summarize more than 13 years or 52 quarters of straight sequential ARR growth, something which we are really, really proud of. Compared to last year and adjusted for currency effects, we had a year-over-year ARR growth of 19% when looking at it from a straight organic perspective. When taking the additional visual art ARR into account, the growth compared to last year was almost 70%. EBITDA is coming in on a level of 33 million for the quarter, corresponding to a margin of 16%, which is a decrease compared to last quarter, but also expected due to the revenue mix that VisualARQ adds to the group, which has a larger portion of systems sales. Cash EBITDA, which means profitability after taking investments into product development into account coming in at 21 million or a margin of 11%. In connection with the acquisition, we took up some financing at our bank, leading us into a net debt position of approximately 200 million, which is well within the company's cabinets. Cash flow for the quarter was strong from operations, but due to the fact that Q4 is always quite systems heavy quarter, as well as we had quite heavy sales by the end of the quarter, meaning that working capital increased, but is expected to be corrected during the first quarter in 2025. So, sauce-wise, We had a currency adjusted quarterly net growth of 3.6%. So somewhat a little bit softer growth during the quarter, but given the facts that the integration work that has been ongoing that Joan will elaborate on, we think it's quite understandable. But the churn rate is still on really controlled levels. And the net revenue retention, meaning how much we grow on existing customers, is still in the vicinity of 110%. As we can see by the source metrics, somewhat slower growth isolated in Q4 due to that focus have been more or less on the integration. Net revenue retention still on really, really good numbers. And what is actually really good to see is that average revenue per brand when taking all the new visual art customers into account increases significantly, meaning that we now have a significantly higher revenue per brand. which is very much in line with our strategy to focus on larger customers with larger potential.