Q1/2023: Profitable growth - 13% EBITDA margin

LeadDesk Plc unofficial translation of Company Release 24/4/2023 at 9.15 am    

Figures in parentheses refer to the equivalent period in the previous year unless otherwise stated. Figures presented in this business review are unaudited.
 

January-March 2023

• Revenue EUR 7,259 (6,850) thousand, growth 6.0%
• Annual recurring revenue contract base EUR 24,711 (23,036) thousand, growth 7.3%
• EBITDA EUR 916 (685) thousand, 12.6% (10.0) of revenue

CEO Olli Nokso-Koivisto's comments on the first quarter of 2024:

"LeadDesk is a leader in European cloud-based contact center software. The LeadDesk product improves the efficiency of our customers' operations, helping them provide a better customer experience and increase sales productivity. Our products are used weekly by over 20,000 customer service and sales professionals in Europe.

Profitability secures growth despite market swings
Last year, we focused more and more on profitability. That work continued and bore fruit during the first quarter of 2023, as our EBITDA was EUR 916 thousand, 12.6% of revenue. We will continue to monitor profitability and act quickly if necessary. Solid profitability improves our chances of reacting to market changes and supports the growth of our business even during uncertain times.

Our revenue grew by 6.0%, and our annual recurring revenue contract base grew by 7.3% compared to the equivalent period last year. I'm super happy that the start of our new VP of Sales has boosted our sales in the small and medium-sized enterprises (SME) segment. In the Enterprise segment, i.e., our large customer segment, our growth was slowed down as the general economic uncertainties made customers more cautious about their decision-making.     

As the growth of the annual recurring revenue contract base was slower than revenue growth last year, we set a moderate revenue target for the first quarter of 2023. Typically, annual recurring revenue contract base growth is visible in revenue in the next quarter. Overall, revenue growth in the first quarter is within our targets.    

Our contracts allow regular price increases. A large share of the price increases will occur in the second quarter of this year. Increased prices will support the growth of the annual recurring revenue contract base during the next quarter and revenue growth during the rest of the year. 

The rapid development of AI solutions continues
At the moment, Artificial Intelligence solutions are developing rapidly. We are doing our part to speed up the development by investing heavily in the development of new AI solutions. AI is already an essential part of our product. Its significance will only strengthen in the future. New AI solutions help us further enhance the competitiveness of our products. Our goal is that all LeadDesk customers will use at least one of our AI tools within the next two years.

AI solutions will make customer service more efficient. Customers will receive faster and better service as artificial intelligence helps agents work more efficiently. For example, shorter waiting times can significantly improve operations in many overburdened industries, such as health care. High-quality customer service and high-performing sales will continue to rely on the collaboration between humans and technology. LeadDesk's high-quality products enable this collaboration.

Towards a successful year
During the first quarter of 2023, we progressed according to our plans in recruiting and have again succeeded in recruiting awesome talent. We will continue to recruit sensibly and in line with our profitability goals.   

I'm super proud of our LeadDesk team, who achieved an expected level of growth during the quarter. By investing more in our AI solutions, we can offer customers even better tools for enabling high-quality customer service and sales. At the same time, we are taking important steps towards our EUR 100 million revenue goal."

Future outlook

Guidande for 2023 remains unchanged

The company expects 6-14% annual revenue growth for 2023 and 11-16% profitability as measured by EBITDA. The outlook does not consider the impact of significant acquisitions on revenue or profitability. 

Financial publications

The company will publish the H1 report on August 7, 2023 and Q3 interim report on October 25, 2023.

 
LeadDesk Plc

Board of Directors

More information

Olli Nokso-Koivisto, CEO, LeadDesk Plc

[phone]

[e-mail]
 

Approved advisor:

Oaklins Merasco Ltd, tel. [phone]
 

Distribution:

Nasdaq Helsinki

Relevant media
http://www.leaddesk.com

LeadDesk Plc in brief

LeadDesk is a fast-growing and internationalising software company, operating in the cloud-based software market in Europe. The company offers the LeadDesk cloud service for sales and customer service and has grown to a leading cloud service vendor in sales and customer service in the Nordics. In 2022, the company's revenue was E28.1 million. The international revenue share was approximately 58%. LeadDesk's shares are traded in the Nasdaq First North Finland market under the ticker LEADD. The company has offices in seven European countries. The LeadDesk cloud service is used by ca. 1900 customers around the world. 

www.leaddesk.com

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