OCTOBER – DECEMBER 2022
· Annual recurring revenue (ARR) amounted to SEK 154.7 (89.6) million, corresponding to an increase of 73 percent, of which 30 percent relates to organic growth and 43 percent acquired growth.
· Net sales amounted to SEK 34,178 (18,536) thousand, corresponding to an increase of 84 percent, of which 27 percent relates to organic growth and 57 percent acquired growth.
· EBITA amounted to SEK -22,819 (-16,557) thousand. Nonrecurring items affected EBITA with SEK 903 thousand which related to transaction costs in connection with the acquisitions which were communicated during December.
· Profit before tax for the period amounted to SEK -29,549 (-16,608) thousand.
· Profit after tax for the period amounted to SEK -27,853 (-16,608) thousand.
· Earnings per share amounted to SEK -1.57 (-0.94), before and after dilution.
· Cash flow from operating activities amounted to SEK -11,589 (-17,964) thousand.
· Cash and cash equivalents at the end of the period amount to SEK 104,144 (251,499) thousand.

JANUARY – DECEMBER 2022
· Annual recurring revenue (ARR) amounted to SEK 154.7 (89.6) million, corresponding to an increase of 73 percent, of which 30 percent relates to organic growth and 43 percent acquired growth.
· Net sales amounted to SEK 123,055 (62,564) thousand, corresponding to an increase of 97 percent, of which 40 percent relates to organic growth and 57 percent acquired growth.
· EBITA amounted to SEK -78,888 (-57,113) thousand. Nonrecurring items affected EBITA with SEK 2,635 thousand which related to transaction costs in connection with the acquisition of Sumdog Ltd and the acquisition which were communicated during December 2022.
· Profit before tax for the period amounted to SEK -102,445 (-57,264) thousand.
· Profit after tax for the period amounted to SEK -97,664 (-57,264) thousand.
· Earnings per share amounted to SEK -5.51 (-3.26), before and after dilution.
· Cash flow from operating activities amounted to SEK -65,479 (-51,513) thousand.
· Cash and cash equivalents at the end of the period amount to SEK 104,144 (251,499) thousand.
 
SIGNIFICANT EVENTS DURING THE FOURTH QUARTER 2022
· During December, three companies were announced to be acquired which contributes approximately MSEK 77 in ARR and accelerates the company’s growth and path to increased profitability
· During December, a directed share issue of 4,099,410 shares were communicated and the company will be provided with MSEK 70 before transaction costs
 
AFTER THE END OF THE PERIOD
· During January, Albert has completed a directed share issue of 4,099,410 shares and is hereby provided with MSEK 70 before transaction costs
· During January, all acquisitions communicated during December 2022 were carried out
· The Board of Directors proposes that no dividend be paid for the financial year 2022

FOUNDER’S COMMENT
We are now leaving the last quarter of the year behind us, a quarter marked by an effective year-out campaign in our consumer offer (B2C) as well as several major sales preparation activities in our school offer (B2B) in the UK school market. Furthermore, we have taken big steps in our acquisition agenda with the goal of becoming Europe's leading educational platform for children and young people, this after three acquisitions were communicated in the current quarter.

During the quarter, the group has further strengthened its role as a consolidating player on the European educational technology market after three acquisitions that are both strategic and transformative in nature. Strategic in terms of gaining a foothold and a good market position in France that we can build on and transformative in terms of diversifying and securing stable income by growing our school offering significantly. In the current capital market and the prevailing macroeconomic climate, we minimize the financial risk in our business by not being equally exposed to the consumer market and diversifying our revenue streams towards more markets as well as B2B.

Looking forward, the school market contributes almost half of our annual recurring revenue (ARR), revenue that is stable and characterized by low churn and long-term loyal customers. Important to highlight is the contribution in reducing the need for capital in the operational activities as well as the acceleration of the journey towards profitability and positive cash flow.

In the short term, we will now focus on realizing the cost synergies while directing much of our focus on exploring and realizing the revenue synergies in the group. The development of a common product offer for both consumers and schools through a harmonized product portfolio in combination with the efficiency of sales teams between the companies has a high priority in the integration work. This work will be an important building block in forming a stable foundation from which the group will be able to grow further in the future.

From a full-year perspective, we are proud that, despite a turbulent macroeconomic year, we continued to execute and deliver on our strategy and against our communicated financial goals. Since the listing just over a year ago, we have tripled the company's turnover and ARR, gained a foothold in new European core markets such as Great Britain and France, launched new products both organically and via acquisition. In addition to this, we and the staff are even more proud of the opportunity to help even more children and young people raise their knowledge levels. Now there are 1.2 million children and young people who continuously use our products for high-quality and fun learning.

With a strong year behind us, a good market position, diversified revenue streams and lower financial risk in the group, we look to the future with confidence. It is important for us not to put the company in a position where the need for capital becomes intrusive in a financial market where it is difficult to access. We will therefore, with the current market situation as a basis, prioritize the journey to profitability and optimize towards our existing cash register to get us there. With a pro forma post-acquisition position of approx. 230 MSEK in ARR and approx. 200 MSEK in net sales, where approx. 50% of the revenue comes from B2B, we feel secure in the journey towards profitability going forward.

We would like to end these words and this year's chapter with a big thank you to all our staff and all our shareholders. Our employees' tireless work and commitment to democratize knowledge and learning for children and young people in combination with our shareholders' strong trust, will and support make our journey towards becoming Europe's leading EdTech actor possible. Thank you for your contribution and we look forward to reaching new heights together.

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 09.00 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/q4-2022/