April -
•Net sales grew by 13.9% to MSEK 36.7 (32.2)
•Annual recurring revenue (ARR) at the end of the quarter was MSEK 141.4, an increase of 9.4% during the last 12 months
•ARR changed by MSEK 0.0 during the quarter
•EBITDA increased to MSEK 11.9 (7.6)
•EBITDA margin increased to 32.3% (23.4%)
•Operating profit (EBIT) increased to MSEK 9.8 (5.8)
•Net income increased to MSEK 7.9 (4.6)
•Cash flow from operating activities increased to MSEK 7.2 (3.3)
January -
•Net sales grew by 18.1% to MSEK 72.9 (61.8)
•EBITDA increased to MSEK 21.3 (13.2)
•EBITDA margin increased to 29.2% (21.4%)
•Operating profit (EBIT) increased to MSEK 17.2 (9.7)
•Net income increased to MSEK 13.8 (7.6)
•Cash flow from operating activities increased to MSEK 20.7 (8.4)
CEO COMMENT
During the second quarter of 2023, net revenue increased to 36.7 MSEK, representing a growth of 13.9% during the last twelve months. Our Annual Recurring Revenue (ARR) amounted to 141.4 MSEK at the end of the period, representing a growth of 9.4% during the last twelve months.
I’m not happy with the ARR growth in the second quarter. The ARR remained unchanged from the previous quarter because churn and contractions were at the same level as new sales and expansions. Our main objective is to build a strong sales capacity to get us back to rapid growth rates. This means that in the short-term, we will focus less on our international expansion and more on building sales capacity in general. This quarter, we’ve continued building the sales organisation needed for our growth ambitions in the coming years. The sales organisation and practices from the last couple of years took Upsales ARR to 141 MSEK. We’re focused on creating an organisation to grow the ARR to
Increasing our average deal size and selling more add-ons and upgrades to larger customers is essential to our strategy. We continue to invest in our product, adding more functionality for companies with advanced requirements. The product team is in the final stage of releasing our CPQ offering targeting customers with complex quotes and orders. We’ve also added more features related to our Swedish cloud, which remain a key requirement for data privacy-sensitive customers. The engineering team is also growing, with several new members joining us after the summer.
Although I’m not happy with the current ARR growth rates, I’m excited about pursuing future opportunities for
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