Q2 2025 Nepa AB Earnings Call Transcript
Key Points
- Sales bookings grew by over 13% year over year, marking the third consecutive quarter of growth, driven by annual recurring revenue (ARR).
- Nepa AB (OSTO:NEPA) is focusing on transforming its business model towards more predictable and consistent recurring revenue.
- The company has launched a cost-saving program, particularly in the UK and Sweden, which is expected to show full impact in Q3 and Q4.
- Nepa AB (OSTO:NEPA) is scaling up its Marketing Mix Modeling team, which is a key growth area and is expected to drive future revenue.
- The company is transitioning its tech platform to a new tech stack, which promises reduced costs and improved client experience.
- There is cautious client behavior and budget constraints, leading to delays in project proposals to the second half of the year.
- The company experienced a negative adjusted EBITDA less CapEx for the quarter, indicating financial challenges.
- Ad hoc sales were softer, impacting overall revenue negatively, despite strong new sales in ARR.
- The previous churn of clients has affected revenue, and the revenue mix impacts the gross margin negatively.
- The departure of the CFO and ongoing evaluation of the CFO position may create uncertainty in financial leadership.
(technical difficulty) (Operator Instructions) Now I will hand the conference over to CEO, Anders Dahl. Please go ahead.
Thanks a lot, and welcome all to this second quarter 2025 report presentation. I am Anders Dahl. I'm the CEO of Nepa, and I will walk you through this agenda. So first, an introduction to Nepa, and then second quarter brief overview, and then I'm going to walk you through the annual current revenues highlights and some words about scaling up Marketing Mix Modeling, the product that we introduced late 2024, beginning of 2025, that we now see good interest in the market, and therefore, we are increasing that organization or improving that organization with a new head of that team.
I will also walk you through the transition of the transformation we are doing on our tech platform, net impact, especially our brand tracker, and then an overview of the financial results and an outlook for the remaining part of the year, and then we end up with a Q&A as a wrap-up for this session.
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