CEO’S COMMENTS

In the first quarter of 2021 the 24SevenOffice team continued doing a tremendous effort during the fourth quarter of the Covid-19 pandemic. Thanks to the technology-oriented culture and experience of remote working over a number of years the 24SevenOffice team achieved a lot from their home offices.

High M&A activity

We strengthened our offering and experience within project management and project accounting with the acquisition of Exicom Software in Sweden. The solution is targeted at large project organisations and has large enterprise customers such as PwC, Scania, Länsforsäkringar and Axfood. This is a very good fit with the large and enterprise business segment 24SevenOffice is moving towards with its software in accordance with the strategic transformation to larger organisations.

24SevenOffice is a multinational technology platform developed with the same source code for all customers in all markets. During the quarter we secured a deal where we can create a joint 24SevenOffice with the Nordics, USA and Europe and build long term international presence. This unites the family of 24SevenOffice companies into a joint company, where it will be consolidated from the second quarter.

We are continuing to be active in M&A and see several interesting opportunities in the Nordics, Europe and USA and it is expected that we continue to acquire new companies going forward. The most recent acquisition of a recruitment system platform extends our module offering into the HR space with functionality for recruitment, hour and absence registration and payroll in one solution.

New technology launches

At the end of the quarter, we had a soft launch of our new payroll system, which already after one month after the soft launch processes about 800 pay slips monthly. We are still in line with the previous target of launching the first fintech service the first half of this year and with continued R&D into these areas will drive more revenue to new and existing customers in the coming quarters.

In the beginning of Q1 we launched our new self-service portal for adding new modules and functionality for our customers and partners to make it easier for our customers to utilize more of the 24SevenOffice software.

We have increased the efforts and focus on the transformation of the sales and marketing towards enterprise sales and enterprise AI deals. We have now launched our enterprise section on our website. We continue to build the pipeline and an order backlog for rolling out already signed AI deals the next 3-4 quarters.

Good results despite the Covid pandemic

As a result of the pandemic we, as several other companies in the sector, also see signs of temporarily slower growth rate and some downscaling of existing customers after a long lockdown affecting businesses in the Nordic countries. Unforeseen downscaling, bankruptcies and longer decision-making processes have impacted us stronger in this quarter compared to other quarters in the pandemic where we have seen less effects.

Despite the by far hardest Covid-19 quarter in the pandemic, currency adjusted revenues for the quarter ended at 49.8 million SEK, which is an 19% growth in revenues adjusted for the extraordinary currency fluctuations between Norwegian and Swedish kroner due to the market situation in the quarter. The EBITDA margin was 2% in the quarter, ending at 0.9 million SEK.

We have also increased investments in sales and marketing back to pre-covid levels that will create future growth. We closed the quarter with signing another large accounting firm on a 3-year AI contract with 24SevenOffice AI engine as the front system towards all its customers. The rollout starts in Q2 2021 and aims to be fully implemented during 2021. This deal adds to the existing order backlog of AI deals in the process for onboarding and roll-out throughout the rest of this year.

There are positive signs from governments in our core markets and vaccination is accelerating which makes me positive that we soon will see the end of the Covid-19 pandemic. In a post-pandemic situation, I believe businesses again will invest more with an increased focus on digitalization and that we will be able to see increased speed again within the next 3-4 quarters. The traction we have in the enterprise AI market with a substantial backlog of signed deals being rolled out this year, new revenue streams with high upsell potentials and results from the enterprise market transformation puts us in a good position to deliver long term growth in the future.

Ståle Risa

CEO

This disclosure contains information that 24SevenOffice Scandinavia AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 06-05-2021 07:15 CET.

For further information please contact:

Ståle Risa, CEO

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

24SevenOffice in brief

24SevenOffice's vision is to empower businesses for the future, through delivering world class cloud based business systems. The system is currently used by 62,600 companies in the Nordic region, with PwC, among others, as accounting partner. The business system is module-based, where the modules are provided independently or packaged as complete solutions. For more information see www.24sevenoffice.com