1 APRIL – 30 JUNE 2022

• Annual recurring revenue (ARR) amounted to SEK 130.6 (69.1) million, corresponding to an increase of 89 percent, of which 40 percent relates to organic growth and 49 percent acquired growth.
• Net sales amounted to SEK 31,159 (15,413) thousand, corresponding to an increase of 102 percent, of which 32 percent relates to organic growth and 70 percent acquired growth.
• EBITA amounted to SEK -12,636 (-14,963) thousand.
• Profit before tax for the period amounted to SEK -19,489 (-15,035) thousand.
• Profit after tax for the period amounted to SEK -18,408 (-15,035) thousand.
• Earnings per share amounted to SEK -1.04* (-311.13), before and after dilution.
• Cash flow from operating activities amounted to SEK -21,491 (-12,343) thousand.
• Cash and cash equivalents at the end of the period amount to SEK 131,228 (43,389) thousand.

1 JANUARY – 30 JUNE 2022

• Annual recurring revenue (ARR) amounted to SEK 130.6 (69.1) million, corresponding to an increase of 89 percent, of which 40 percent relates to organic growth and 49 percent acquired growth.
• Net sales amounted to SEK 55,759 (26,508) thousand, corresponding to an increase of 110 percent, of which 54 percent relates to organic growth and 56 percent acquired growth.
• EBITA amounted to SEK -34,564 (-22,496) thousand. Nonrecurring items affected EBITA with SEK 1,732 thousand which related to transaction costs in connection with the acquisition of Sumdog Ltd in February 2022.
• Profit before tax for the period amounted to SEK -44,593 (-22,638) thousand.
• Profit after tax for the period amounted to SEK -43,017 (-22,638) thousand.
• Earnings per share amounted to SEK -2.43* (-468.47), before and after dilution.
• Cash flow from operating activities amounted to SEK -46,449 (-21,801) thousand.
• Cash and cash equivalents at the end of the period amount to SEK 131,228 (43,389) thousand.

*Earnings per share have been calculated for 2021 with the share split (250:1) registered on 25 August 2021.

SIGNIFICANT EVENTS DURING THE SECOND QUARTER 2022

• In April, the technical and operational integration of Jaramba, which was acquired in December 2021, was completed. Jaramba's platform, focusing on reading, arithmetic and learning games for children aged 1-5, is thus available to all Albert customers, which has increased the product offering.
• In April, Jonas Mårtensson was recruited as Chief Operating Officer with effect from 1 June 2022. Jonas will be part of the management team and responsible for the company's B2C operations.
• In June, a license agreement was signed with Bonnierförlagen to launch a mathematics book for the age category 6-9 years. The book is expected to go on sale during the second quarter of 2023.

FOUNDER’S COMMENT

The acquisition of Sumdog in February was strategically important in the ambition to eventually deliver a comprehensive offer to both schools and families, and thus connect teacher-parent-student. Albert as a group is taking shape while we continue to optimize towards cost-conscious growth. In short, the quarter has been characterized by 2 primary focus areas, to (i) realize the synergies from the previously made acquisitions and (ii) evaluate and execute on cost-conscious growth areas.

We look back with pride on the team's efforts in recent months to bring Jaramba and Sumdog into Albert's consumer business, with Jaramba first out for the Swedish market and then Sumdog for the UK and US markets towards the end of the quarter. In previous years, we have shown that the marketing strategy also works in markets other than Sweden and the Nordic countries, and now happily also see clear indications that it also works with brands other than Albert. With a centralized customer acquisition as a start, work also began during the quarter to find other Group-wide synergies.

In parallel with the integration of Jaramba and Sumdog for the B2C business, we have evaluated other growth opportunities. Changes in the rest of the world with rising interest rates and high inflation have had a positive effect on the opportunities to make strategically important acquisitions for Albert. The flexibility to be able to drive growth in different ways gives us greater security on the journey towards becoming a leading European player within EdTech. In addition to contributing important pieces of the puzzle to the vision, the flexibility helps to make growth less sensitive to rapid fluctuations in, for example, costs for digital marketing. We have, and will continue to, carefully consider growth options.

With a decentralized product and development organization, we were affected by the ongoing war in Ukraine. Our first and highest priority was, and continues to be, to contribute in every possible way to increasing the security of our affected colleagues in the region. As a result, a number of colleagues have joined the team in Gothenburg, and we are following developments in the region closely.

The recruitment of Jonas Mårtensson as COO is another key event during the quarter. With a focus from us founders to shape and drive the group's growth, Jonas has come in and from day one taken responsibility for the B2C business in an exemplary way. With Jonas joining the management team, the group is also organisationally well equipped to continue the growth journey.

When we look back at the past quarter, we find that a lot has happened. The entire business continues to move towards the goal of becoming a leading player in the European EdTech market, at the same time as major changes are taking
place in the outside world. All in all, the consequence of this will be that we will continue to be selective in how we invest in growth, at the same time as we consider and act on new growth opportunities that are created. Our vision
and long-term goals will continue to lead us into an exciting future.

Link to the report
The report is attached to this press release and is available at: https://investors.hejalbert.se/uk/reports

Presentation of the report
Today at 09.30 CET, founders Arta Mandegari and Salman Eskandari as well as CFO Martin Dahlgren will hold a presentation of the report via webcast. Link https://www.finwire.tv/webcast/albert/q2-2022/