Vertiseit AB (publ)

Hi everyone, welcome to Varberg and this earnings call. Vertisit has today released its year-end report for Q4 of 2025. My name is Jonas Lagerkvist, I'm Deputy CEO and CFO of Vertisit and with me I have Johan Lind, CEO of the group. So this morning we published our Q4 report and we'll go through it and deep dive into some of the most relevant topics. We will go through the acquisition that was finalized during the quarter of Muse and Stoked AI in Germany. We will look into the quarterly financials. We will present some highlights in the business during the quarter. We will also go through and discuss some key AI related topics. And we will finish off with a Q&A session where everyone can get their questions answered. Should you at any time have any questions, feel free to use the chat function. And should you want to join the call and talk with us, use the raise hand function. So please, Johan.

Yeah, so for those of you who are new to the company Vertisit, we are a SaaS company. We provide an in-store experience management platform for retailers and brands to facilitate the customer meeting by bridging the gap between online and in-person. where the core capability that we have is to be able to orchestrate all digital touchpoints in store, whether it's for branding purpose, tactic, communication, if it's sales support, or all the way to transactional loyalty. So the business model is quite straightforward. So our SaaS revenue is related to the number of deployed touchpoints in storage. Looking into the Muse and Stoked AI acquisition, it's a really interesting one. It's a highly strategic acquisition from our side. Most of our previous acquisitions have been exactly in the same scope as we have acted ourselves, where we have basically covered the full value proposition of the target company. But News & Stoked is a little bit different and I will walk through this with you all. So EUS is a small company, Hamburg based, 10 employees, founded 2010. They have been in the forefront of retail tech and consulting in this space. like 50-50 portion of in-store audio and in-store experience. And we will go in a little bit into the in-store audio because that's a very interesting one where AI will have a big impact. If you look at from a revenue perspective, the revenue was 3 million, 0.8 million euros in ARR, profitable in line with where the group is running as of now. If we go to the next slide, the important thing with Muse is that it adds a lot of AI expertise into the group, especially in the field of in-store audio, but also in other disciplines. They have been one of the disrupting companies within the in-store audio space. So what we see is that they add knowledge both in product development, consulting and operations. I will get back to that in the AI section later today. The in-store audio is a space which is pretty much as big as traditional digital signage or visual communication. But for many years we have been outside of this space due to that Insta Audio had been highly regulated, very service-oriented. And what we see now is that you could do on-demand audio messaging in store with AI. you could leverage also like music libraries that are AI generated, meaning that Insta Audio goes from a service oriented service to more of like a product sauce tech delivery with the margins that we want to have. Interesting thing is also that Muse are very well positioned when it comes to the fashion retail industry in Germany. They have a lot of strong local German brands in their portfolio that we can grow with. What we do is that we bring Basically, the whole muse into visual art and form a new in-store audio division and bring some of the key people into consulting. And also Marco will join Grassfish and he is one of the two founders of the company.

So moving into the quarterly financials, I think this is a chart that many of you are familiar with by now. And we're just proud to say that we keep development according to our track record. We are now passing 14 years of sequential ARR, so we've always managed to grow our ARR from quarter to quarter during now 14 years, which is somewhat of an achievement. Some high-level bullets from the quarter. is that we keep growing our ARR. The ARR amounted to 332 million by the end of the quarter. That's a year-over-year growth of 27%. And out of that 27%, 16% is organic. which altogether is a growth number exceeding our financial target of 20%. We also managed to deliver profitability during the second half of the year of 20%, which was the profitability level that we guided for when we communicated this target in Q2 2025. During the quarter we have expanded our AI capabilities both internally but also through the acquisition of Muse and Stoked AI and all across both our product development, our consulting business and in our internal operations. We strengthened our organization in Germany. We continued to grow during profitability. We've also had a really high inflow of high quality international leads on a level that we have not seen before, which gives us like a very positive stance going into 2026. We've also started an evaluation to relist the company to NASDAQ main markets in line with our ambition of building a strong quality company and being able to attract even more broader investor base. So 27% growth year over year, of which 16% was organic. When looking at the net revenue retention, it remained stable and even increased a bit, so just above 108%, meaning that more than 50% of our organic growth now comes from growth on our existing customer, which is a solid receipt that we have a competitive offer that we deliver quality and value creating solutions to our customers so that they want to keep growing their business and keep expanding with us. The churn rate on like an annualized level stayed at 3%, which is very low and that we are really happy for. And we see that the sales environment is improving when we now enter 2026. On net revenue level, we decrease our top line by eight percent. And that is very much related to decreasing system sales during the quarter. And when we decrease system sales, we do that in favor of delivering hardware through our partners, which is in line with our overall strategy in order to become more scalable and being able to expand more rapidly. So we deliver on the 20% EBITDA guidance for H2. And worth mentioning is that we have some one-off costs during the quarter of approximately 5 million that we are not adjusting for. So underlying profitability is somewhat stronger than the actual reported.