Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Upsales Technology AB (OSTO:UPSALE, Financial) reported an all-time high in new sales and customer acquisition in Q4 2024.
- The company has a strong focus on AI, integrating it into their core offerings, which is expected to drive growth in 2025.
- Upsales Technology AB (OSTO:UPSALE) maintains a high percentage of recurring revenue, accounting for 95.7% of total net sales.
- The company is management-owned, with 43% ownership, indicating strong alignment with shareholder interests.
- Upsales Technology AB (OSTO:UPSALE) has a net cash position of SEK47.4 million with no debt, providing financial stability.
Negative Points
- Annual recurring revenue growth was only 1% year-on-year, indicating slower growth compared to previous periods.
- EBITDA margin decreased significantly to 15.1% in Q4 2024 from 25.3% in Q4 2023, reflecting lower profitability.
- The company's slower revenue growth has impacted margins despite continued investment in product development.
- Net sales showed minimal growth, increasing from SEK36.3 million in Q4 2023 to SEK36.4 million in Q4 2024.
- The transition to a new pricing model may pose challenges in customer adaptation and acceptance.
Q & A Highlights
Q: With the changes in your pricing model, will there be a growth in higher revenue per user?
A: Yes, we expect that. The new product is at a higher pricing point but contains a lot more value. We are moving toward a consumption-based model, where the price depends on data usage and tool utilization. Long-term, AI aims to make us more effective, potentially shifting away from a seat-based model. However, we haven't seen this trend yet, but it might emerge in the coming years. - Daniel Wikberg, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
