Vertiseit AB (publ)

Hi everyone, welcome to this earnings call after Vertisit this morning have released our interim report for the first quarter of 2026. My name is Jonas Lagerqvist, I'm the Deputy CEO and CFO of the Vertisit Group and with me I have... Johan Lind, CEO of Vertisit. Welcome. We will guide you through the quarterly report of the first quarter of 2026. On today's agenda, we have a walkthrough of the financials. We will present and discuss some of the highlights during the quarter. We will finish off with a Q&A session. So if you have any questions whatsoever during the call, please use either the chat function or the raise hand function if you wish to join the call and speak directly. So let's start, Johan.

Yeah, and for those of you who are new to Vertisit, we are a SaaS company offering an in-store experience management platform for brands and retailers. Our vision is to connect the world of retail And we really want to be the infrastructure for the in-store communication. Basically being able to operate, orchestrate all digital touchpoints in store.

Diving straight into the financials for the quarter. Those of you who have been with us for a while, you recognize this slide. We have now added one more bar, proving that we can keep growing our ARR sequentially, and we have done so since 2012. And this, we believe, is like the strongest evidence of the value that our offering creates with our customers and the resilience in our revenues. So we close the quarter on an ARR of 341 million. We're on our way towards our long-term target of having 1 billion in ARR. In review, we would like to highlight that we continue to grow during profitability as we have done for a very long period of time. ARR growth compared to last year amounts to 24%, which is exceeding our financial targets of 20%. Profitability, the increase compared to last year was 27%. And recapping our financial targets, we say that we are to grow our profit per share by at least 25%, which is then the outcome is also in line or exceeding our financial targets. We are experiencing a strong demand in the market. We have a pipeline of very high quality opportunities that we are currently working with. And we would like to emphasize this communication that we now have done for some quarters that there is a strong interest and a strong demand in the market. And in this Q report, we also report briefly on the activities that we perform in the M&A market. And also there is a very strong activity. We have quite some opportunities that we are actively exploring. And we are confident that we will be able to deliver on that. on our acquisition plan, where we say that we will perform in the span between two and four roll-up acquisitions per year. We closed at an ARR of 341 million, meaning a year-over-year growth of 24%. And during the quarter, the growth isolated was 3.3%, meaning that the organic part of the growth annualized is approximately 14%. We have an NRR, which is normally quite close to 50% of the organic growth. This quarter, it was a little bit weaker than 50% of organic growth, meaning that the majority of the growth actually came from new sales and new customers this quarter. And we still operate with a good margin above our target of having 100% in NRR. For a Q1, the churn rate was still quite low, even though it was slightly higher than the previous quarter. In Q1, we normally have at least an acceptance for that the churn can be slightly higher than other quarters, depending on that there are many contracts that renews at year end, meaning that when churn occurs, it is quite likely that it occurs at year end and is then visible in the Q1 figures. Net revenue decreases slightly, but we are at the same time now back on a SaaS share of revenue of exceeding 50%. which is long-term where our margin expansion will come from, besides, of course, the general growth in SaaS revenues. But an increased SaaS share of revenue is incremental to increase our general profit margins. Yes, some highlights.