Vertiseit AB (publ)

Good morning everyone and welcome to this Vertisit earnings call for the third quarter of 2026. My name is Jonas Lagerqvist and I am a deputy CEO and CFO of the group and with me I have... Johan Lent, I'm the CEO of Vertisit. This morning, we disclosed the group's financial results for the third quarter of 2026, and the report can be found on vertisit.com, and we will move through it during this call. If you would like to ask questions, please use the Q&A function. You can always also use the raise hand function if you would like to join the call and talk to us directly. So we will move through the financials in the report. We have one topic that is DICE becomes Scala, where Johan will elaborate on this. We will give you a brief strategy update on the ongoing strategy changes that we are performing. We will disclose some highlights and we will finish off with a Q&A session. So please bear with us.

And for those of you who are new to Vertisit, we support brands and retailers to create better customer experience in-store. We provide a SaaS platform for in-store experience management. that gives retail the ability to orchestrate all digital touchpoints in store, whether it's for branding, whether it's for campaign tactical communication, retail media, or sales support. To be able to orchestrate all those displays or devices in store is what in-store experience management is all about. We... If we look at the numbers now, we have reached 464 million in ARR. We are more than 300 full-time employees. We support more than 2,000 brands now. We've reached a new mark there since the Skal acquisition. And we operate more than 450,000 touchpoints.

Okay, so let's move into the financials. And to summarize the key findings in the Q3 report, this quarter we performed an ARR growth of 44% compared to last year, which is exceeding our financial targets. Isolated in the quarter, we have organic growth of 3.5%, which means that on an annualized basis, we grow by a growth pace of 15% organically, which is also aligned with our long-term target of growing ARR to 1 billion Swedish crowns until 2032. What we can clearly see in the report is also that with an increased share of SaaS revenue, we also improve our profitability. And on our most important profitability measure, which is the cash EBITDA, we improved that by 91% compared to the same period last year on a per share basis, which is also in line or exceeding our financial target. We have a negative cash flow effect that is very much affected by the Scala acquisition, which consists of one-offs and temporaries. The integration project was closed and performed according to the time plan and also in line with our own budgets for the activities. We also conclude that we have a strong international pipeline and have even improved market traction, but Johan will talk more about this later. In the quarter, we have a strong revenue, increasing by 45%. And despite having quite a lot of systems revenue during the quarter, we still perform increasing the SaaS share of revenue to 54%. which then leads to an increased profitability where the adjusted EBITDA margin is 25% and also the cash EBITDA margin is significantly strengthened to 22%. And this is, for us, this is the clear evidence that our strategy of increasing SaaS as share of revenue is actually paying off and will in time lead to the long-term profitability target of 35% cash EBITDA. In the cash flow, We have some seasonal build-up, which is due to a decreased holiday liability, because our staff is on holiday during the period. And there is also a seasonal working capital build-up due to picked up activity after people returning from holiday. And related to Scala, we have some one-off payments of the costs that were provisioned for in Q2 related to the integration project. And there is also a temporary working capital increase where we, since we have invoiced a lot of the Scala customers late in the quarter. All in all, this will have a positive cash flow effect in Q4, which will then likely be stronger than a normalized Q4 quarter. And for comparability causes I can also say that we have done some minor changes in the in the P&L and in the segments and that is very much driven by the ongoing project of relisting Vertisit from First North to Nasdaq main market and in practice it means that some segment related costs that were related to the segments SaaS and consulting they are now in the P&L moved to the cost of goods sold. It's solely an accounting change, and if you want to follow the gross margin in the same way that we have reported it historically, please look in the segment notes for this. ARR wise, we have a net organic growth within the quarter of 3.5%, meaning a growth rate organically of 15%. And year over year, when taking into account fixed foreign exchange rates, we grow by 44%. And we also managed to increase the net revenue retention slightly to 108%. And we also have a churn that remains on low levels, which is very comforting. So another quarter of ARR growth in the books and we are very happy financially and business development wise with the quarter and have the ambition to just keep on moving along in this direction. Ambition stays intact. We're moving towards our ambition to become the global number one platform company within our space. And our long-term targets are to reach 1 billion in ARR by 2032, which the current organic growth rate actually enables us to reach without acquisitions. But those will happen as well, so hopefully we will arrive at this target earlier than 2032. And Also, the increased share of the SaaS revenue pushes us towards an increased profitability. So measured as cash EBITDA, we are to have 35% by 2032, and we are moving in that direction. And the financial targets which we all exceed during the quarter is that we should always have an ARR growth exceeding 20%. We should always grow our profitability per share by at least 25% and have more than 100% net revenue retention. So all checks and balances are green for this quarter.