Q1 2026 Vitec Software Group AB (publ) Earnings Call Transcript
Key Points
- Vitec Software Group AB (STU:7VS) reported a 9% increase in sales, reaching SEK955 million, with a mix of 5% organic growth and 7% from acquisitions.
- The company successfully added two acquisitions in Q1, Dutch Autonet and Swedish Infometric, contributing SEK175 million to growth.
- Recurring revenue remains strong, with a 6% organic growth in subscription-based income, which includes SaaS and maintenance fees.
- Vitec Software Group AB (STU:7VS) is experiencing rapid AI adoption, enhancing internal efficiency and customer applications.
- The company maintains a diversified portfolio across 22 verticals, reducing dependency on any single industry, customer, or country.
- The company faces a 3% FX headwind, impacting overall sales growth.
- Energy sector volatility, influenced by external factors like weather and geopolitical events, makes future sales predictions challenging.
- Despite AI advancements, customer adoption is slow, with many clients preferring gradual implementation over rapid changes.
- The private M&A market is slow, with few deals being completed, although Vitec Software Group AB (STU:7VS) remains active in discussions.
- There is a seasonal decline in subscription revenue from Q4 to Q1, attributed to customer spending patterns and churn.
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Welcome to this conference call. I'm Patrik Fransson, Head of Investor Relations at Vitec Software Group, and within the room is our CEO, Olle Backman. As always, we will first give you a short overview of Vitec and then followed by comments on the report released early this morning. And after that, we will open up for any questions. So Olle?
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Okay, thank you, Patrik. And again, sorry, obviously not a Vitec software that was used for this. But like Patrik said, always starting with a short intro on the group level and then moving over to the Q1 results. So this picture by now, many of you, starting with the customer perspective, 27,000 customers by now. We have 49 business units. We started the year with 47, so we added two acquisitions during the first quarter.
We have our feet on the ground in 13 countries, and the pro forma sales is after the two
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