Publicerat: 2020-08-26 07:15:00

24SevenOffice Scandinavia AB: Interim report, January - June 2020

Strong quarter despite the current market situation

April - June 2020

• Net sales increased by 31% Y-O-Y adjusted for exchange rate fluctuations

• Consolidated net sales ended at 39,061 (SEK 000s)

• EBITDA totaled to 5,326 (SEK 000s) (13,1% margin)

• Operating profit, EBIT, was 3,297 (SEK 000s)

• Profit after tax was 260 (SEK 000s)

• Earnings per share SEK 0.004


January - June 2020

• Net sales increased by 33% Y-O-Y adjusted for exchange rate fluctuations

• Consolidated net sales ended at 81,049 (SEK 000s)

• EBITDA totaled 5,994 (SEK 000s) (7,2% margin)

• Operating profit was, EBIT, 1,872 (SEK 000s)

• Profit after tax was -1,724 (SEK 000s)

• Earnings per share SEK  -0.03

CEO’s comments

I am proud of the 24SevenOffice team and its performance during this first full quarter with the Covid-19 pandemic. The effort by the team in this tough and uncertain market environment really shows the culture of the company. The customer intake was solid, growing with 12,200 customers, which is 29% growth compared to the second quarter last year.

Our original plan was to move to profitability during the year and by adjusting the target in the covid-19 situation our adjusted strategy resulted in an EBITDA margin which exceeds 10% in 2Q. At the same time we managed to keep our high revenue growth at 31% year over year, adjusted for the extraordinary currency fluctuations between Norwegian and Swedish kroner due to the market situation in the quarter. 

Currency adjusted revenue for the quarter was 43,4 million SEK with an EBITDA of 5,4 million SEK. For the first six months the currency adjusted revenue was 87 million SEK equaling a 33% year over year growth. The EBITDA for the first six months was 6,6 million SEK equaling a 7% margin.  

World class SaaS unit economics

As a SaaS company the unit economics are among the most important key performance indicators to follow closely and adjust the business. Our unit economics are continuing to improve as a result of getting return on the investments we have made during the previous year. Our new hires have been trained and are continuing to improve their productivity. The lifetime value to CAC (customer acquisition cost) ratio increased to 10.4 and we are recovering the CAC after 11.8 months of subscription. With the investments in new employees last year we have the foundation for growing without increasing the people count at the same level as last year which means we can grow with profitability going forward and having world class unit economics.

Even though we are delivering a strong quarter it is still too early to say that we are out of the Covid-19 crisis and that our results will not be affected by the pandemic. It is too early to tell if the effect on the economy will be worse during the second half of this year with an increase in bankruptcies that can affect the subscription base. We are, however, monitoring the development and possible impacts closely, and are prepared to adjust the business accordingly. On the positive side we do see an increase in companies wanting to digitize and automate their business administration with 24SevenOffice and it might as well be this effect that will continue to drive growth in the coming quarters.  


Raised 110 mill SEK during the pandemic

We raised 110 million SEK in the end of May in a substantially over-subscribed directed share issue with large interest from leading institutional investors in the Nordics, Germany, UK and US. This process proved that with online and cloud based systems it is possible to meet people around the globe and present without travelling and without leaving the home office. I do believe this will be the new normal and with the digitalization it will drive future demand for 24SevenOffice. 

The new share issue was, among others, subscribed for by the fund TIN Ny Teknik, Swedbank Robur Ny Teknik, Adrigo Small & Midcap, Joh. Berenberg Gossler & Co and Seven Canyons Advisors. With the proceeds and strong shareholders we can accelerate growth initiatives, including M&A opportunities.


Huge opportunities with Fintech

24SevenOffice has been one of the pioneers in integrating the accounting and ERP system with the banks allowing customers to pay their invoices and receive payments directly from the accounting system. We were also the first to launch financial services where companies can sell their invoice and get paid immediately and launched small business loans during the Corona crisis. 

Traditional banks have substantial revenue from payment transactions alone. With the PSD2 regulative and new technology the banking industry is open for disruption. Our investment in Optin Bank is the next step where we can offer our customers relevant banking products seamlessly integrated into our services, more efficiently, cheaper and faster. 


Moving events to the CLOUD

CLOUDCAMP has since 2013 been an annual all-day event for accountants, where we have met in a packed Rockefeller Music Hall in Oslo. Live events are, however, not possible during the pandemic and with the mindset of the 24SevenOffice employees they not only moved the event to the cloud, they also expedited the event launching and hosted a huge online event in June and continuing the journey now this autumn reaching almost 1,000 participants in online events before the original event was planned. This really shows the courage and enthusiasm of our employees in situations where they need to be dynamic.


Empowering businesses for the future

Companies that want to be competitive in today’s markets must have efficient accounting systems, invoicing systems, access to a CRM system, project management, time accounting etc. As a company that delivers an efficient, highly automated and fully integrated cloud-based ERP software for the corporate market, 24SevenOffice is very well positioned. 

I believe more companies are currently experiencing that their systems need to be available outside the office, and therefore switch to cloud-based systems. They will also see the importance of investing necessary time and take the required steps to switch to a both efficient and automated ERP system. As a consequence of the covid-19 situation we might see an increase in demand for cloud-based software solutions that both digitalises and streamlines companies and thereby, empowering them for the future.

Ståle Risa


This information is such information as 24SevenOffice is obliged to disclose under the EU Market Abuse Regulation 596/2014. The information was provided by the contact person below for publication at the point in time specified by 24SevenOffice’s news distributer Cision at the publication of this press release. For further information, please contact the person set out below.


For more information please contact:

Ståle Risa, CEO

Tel: +46 70-023 63 03, str@24sevenoffice.com

24SevenOffice in brief

24SevenOffice delivers business systems to small and medium-sized companies in the Nordic region via cloud-based solutions. The system is currently used by 54,500 companies in the Nordic region, with PwC and KPMG, among others, as accounting partners. The business system is module-based, where the modules are provided independently or packaged as complete solutions. 24SevenOffice's goal is to become a leading SaaS ERP player  in the Nordic region. For more information see www.24sevenoffice.com

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