Q3 2025 Nepa AB Earnings Call Transcript
Key Points
- Nepa AB (OSTO:NEPA) reported a fourth consecutive quarter of bookings growth, with sales bookings increasing by more than 10% and ARR bookings rising by over 200%.
- The company has successfully realized SEK22 million in annual cost savings, contributing to a return to profitability with an adjusted EBITDA margin close to 1%.
- Nepa AB has made significant investments in technology and experienced hires, including data scientists and a new marketing optimization team, to enhance product innovation and client delivery.
- The new brand tracking platform, set to launch in early 2026, is expected to lower maintenance costs and improve product integration, enhancing client experience.
- The company has diversified its ARR portfolio, reducing reliance on customized solutions and focusing on a more uniform service offering, which supports scalability and cost efficiency.
- Net sales declined due to phased-out contracts and extraordinary churn, with an underlying change of only 1% excluding these factors.
- Despite improvements, the fiscal year 2025 result is expected to remain negative due to losses incurred in the first half of the year.
- The transition from ad hoc to ARR-focused sales has impacted short-term profitability, although it aims to build a more stable business model.
- The company faces challenges in predictability and seasonality, particularly in ad hoc sales, which can affect revenue timing and cash flow.
- Nepa AB's cash flow remains negative, with future improvements dependent on ARR bookings, upfront invoicing, and working capital management.
Good morning and welcome to Nepa 's 2025 interim report presentation. My name is Anders Dahl, and I'm going to walk you through the presentation today. I'm going to start with a quick overview, introduction to NEPA, and then I'm going to walk you through Q3 in a brief overview, and then on the underlying growth in our ARR business to describe that a little bit more in detail, but also the support in business transformation that actually drives or I've driven those numbers into a positive trend.
And also a short overview or an update of our new brand tracking platform transformation that we have been kicked off during the early phases of 2025, but we will be fully launched early 2026. And then a Q3 financial results outlook, and then a Q&A for the people to wrap up the session with.
Nepa is a leading marketing intelligence company driving brand growth by insects full market analysis. We track more than 7,500 brands across the globe with daily measure of thousands of advertising campaigns and annually across 50 plus markets. We deliver
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