Vertiseit AB (publ)

Hi, everyone. Welcome to this earnings call. We at Vertisit have today published our interim report for the third quarter of 2025. My name is Jonas Lagerqvist. I'm deputy CEO and CFO of the company. And my name is Johan Lind. I'm the CEO of Vertisit. Today we published our interim report, which we will deep dive in a bit during this call. We will touch upon the integration of the acquired MDT, which was acquired in July. We will present the financials and discuss things like the background for them. We will also touch upon the Winning Together camp that we performed during the quarter. And by the end of the session, there will be a Q&A. So please use the raise hand function or just write your questions in the Q&A function in Zoom. Yeah.

And just to give you a brief overview over the quarter and our view on the report, we are really happy to exceed now 300 million Swedish crowns in ARR. It's a big milestone. And as you see, like the last year, we have grown the ARR 69%. We have been able to integrate the visual art and we, as you know, in Q2, we also took measures to realize synergies. We were guiding towards a margin above 20% and we delivered 22% in the quarter. So really happy about that. The MDT integration is also finished according to plan and on top of that we deliver 15% organic growth the last 12 months. During the quarter the organic growth was a bit softer. 11%, a little bit due to a weak Q2, but we see how the market is really ramping up. So I think we are in a really strong position and we think it's a strong report. As you know, we are a SaaS company delivering in-store experience management platform to leading brands and retailers. And the value we create for our customers is the ability for them to facilitate a better customer journey, orchestrate all diggable touchpoints in-store. And from a business model perspective, In our report, we followed the license revenue, the ARR growth, but there are also components of consulting services and system sales that can fluctuate. In this quarter, the revenue mix was very much tilted towards SaaS, where we delivered strong figures, but but the system sales and consulting were soft. But that's something that can vary over time. Talking about the MDT integration, as you know, we did an acquisition of MDT in Germany with customers such as Deutsche Telekom, McDonald's in Germany, 1,250 restaurants for McDonald's. And it's a part of our new strategy to deliver on a roll-up agenda. And this fits perfectly into our strategy to do acquisitions, which add to our customer base, takes us into new markets, et cetera. And just to give you a recap, when we did multi-queue acquisition years ago, it took us one and a half year to finalize the integration. With Visual Art, we were up to speed with six months, but now we managed to actually finish off this integration within three months, and it gave us a lot of confidence going forward into executing on our roll-up agenda. I also want to highlight some key wins that we are really proud of during the quarter. We were signing the biggest retail media deals we have seen in the Nordics. We're selling a group. It's a group consisting of Netto, Fertek, Spilka, etc. And they also have like 2000 locations. So it's a huge potential, but it's a framework agreement where we, of course, have started to migrate, started to roll out, but we will grow with them over many years to come. Same goes with Instormedia from Spain. It's one of the leading international retail media companies and we will also work with them. We are now appointed their main platform and we will gradually, customer by customer, migrate to the GrassFish platform.

Moving into the financials. We can, like another quarter, confirm that we still are growing our ARR, both sequentially and, of course, organically. So we sum up our ARR by the end of the quarter to 316 million Swedish crowns. That constitutes a growth of almost 70% compared to last year. And looking at the organic growth in the quarter, it was 2.6%. And if we annualize that, we have an annualized growth rate of 10.9%, which is somewhat lower than usual. But looking in parallel at the NRR, we can confirm that we had a continued strong growth on existing customers, but had a somewhat lower new customer sales during the quarter, which is also a consequence of a Q2 where the activity was a little bit lower. We remain on really low churn levels, which is, of course, really important because it also points out the quality and the value that we manage to deliver to our customers and provide a stable base for our growth going forward. And during the quarter we can actually see that the activity on both existing and new customers are picking up.