Q1 2025 Nepa AB Earnings Call Transcript

May 9, 2025 / 09:00 AM GMT

Release Date Price: kr19 (-3.55%)

Transcript

Key Points

Positve

Nepa AB (OSTO:NEPA) reported a positive net cash flow of 3 million for Q1, indicating strong financial management despite revenue challenges.
The company achieved a gross margin of 76.1% in Q1, reflecting improved profitability.
Strategic initiatives, including cost-saving programs in the UK and Sweden, are expected to generate annualized savings of approximately 19 million.
Nepa AB (OSTO:NEPA) has successfully redefined its ideal client profile, leading to increased order intake and new client acquisitions.
The launch of the continuous marketing mix modeling (CMMM) product has been well-received, allowing the company to engage with higher-level executives within client organizations.

Negative

Net sales for Q1 were down by 13% compared to the previous year, primarily due to phasing out low-margin contracts.
The company experienced a 19% decline in annual recurring revenue (ARR), although this was partially offset by strategic contract adjustments.
Despite strategic realignments, the market remains unpredictable, with macroeconomic factors such as tariffs impacting client spending.
The restructuring of the UK office resulted in a 2.6 million impact on operating expenses.
Nepa AB (OSTO:NEPA) acknowledges that the transformation process is ongoing, requiring patience and continued effort to achieve long-term growth and profitability.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

NEPA.ST - Nepa AB
Q1 2025 Nepa AB Earnings Call
May 09, 2025 / 09:00AM GMT

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Presentation
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Unidentified_1 [1]
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Welcome to NEPA Q1 2025 earnings call. I am here today with the CEO Anders Doll and the CFO, Philip Totti. Welcome.

Thank you.

Thank you. We will start off with a presentation of the quarter report, and after that we're going to have a Q&A session. And, if you as a viewer would like to, type in some questions, you can do that by going to the chat bar below and type it in there.

Go ahead. Thank.

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Unidentified_2 [2]
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You, thank you and welcome to the Q1 2025 Financial report from NEA. I'm Anders doll, and with me are Philip Torter today to present.

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