SUMMARY OF THE REPORT

Second quarter: 1 APR 2024 TO 30 JUN 2024

• Subscription revenue increased by approximately 11% to KSEK 4,856 (4,367) 
• MRR in June was KUSD 154 (145)
• EBIT was KSEK -4,129 (-3,227) 
• EPS before dilution was SEK -0.03 (-0.01) 
• Cash position was KSEK 5,326 (3,151)

Year to Date: 1 JAN 2024 TO 30 JUN 2024

• Subscription revenue increased by approximately 10% to KSEK 9,720 (8,816) 
• EBIT was KSEK -9,980 (-6,804)
• EPS before dilution was SEK -0.07 (-0.04)

SIGNIFICANT EVENTS (Second quarter)

• Payment of approximately MSEK 8 was received in April 2024 for support contract extension signed in Q1 2024
• Extensive platform improvements have broadened our customer base and enhanced the potential to upsell to existing customers

SIGNIFICANT EVENTS (Year to Date)

• Divio receives a contract extension of the value of approximately 12 MSEK in Q1 whereof 8 MSEK was prepaid in Q2
• Launch of self-service offering enabling free trials without hands-on involvement from Divio which will generate relevant leads for the sales team

SIGNIFICANT EVENTS AFTER THE QUARTER

• Partner Manager hired to expand and engage agencies using Divio's platform

CEO COMMENTS

This quarter has been a pivotal period for us, marked by significant achievements that are propelling us closer to our long-term strategic objectives. Across several key areas of our business, we have seen encouraging progress that not only underscores the effectiveness of our initiatives but also lays a strong foundation for sustained growth in the future.

One of the most notable advancements this quarter has been in our sales efforts, which continue to gain momentum. A few years ago, cold calling was the most effective way to find new customers. Today, however, few people answer the phone or respond to emails and LinkedIn messages. Finding the right customer and reaching them has become more challenging than ever. As a result, new methods were essential. The development of our prospecting engine is a major milestone. This innovative tool is designed to streamline and optimize our sales processes by identifying and targeting high-potential leads more effectively. It has taken time to implement and roll this tool out and when now finally completed we anticipate that this will significantly accelerate our growth trajectory, enabling us to capitalize on new opportunities with greater precision and speed.

Equally important is the launch of our self-service offering, a strategic initiative that represents a critical step forward in how we engage with potential customers. By enabling prospective clients to independently explore our platform through free trials, we are not only enhancing their experience but also generating high-quality leads for our sales team. This approach allows us to scale our outreach efforts without requiring direct hands-on involvement, making our sales process more efficient and allowing our team to focus on closing deals with the most promising prospects.

In addition to these sales initiatives, we have made substantial strides in strengthening our partner network, particularly among agencies that manage multiple projects. Our platform’s capabilities make it an ideal solution for these partners, and we have dedicated considerable resources to refining our features to better meet their needs. Earlier this year, we introduced a new partner program designed to foster deeper collaboration and mutual growth. As part of this initiative, we have also bolstered our sales team by bringing on a dedicated partner sales responsible. This individual brings a wealth of experience and insights, having previously worked with one of our long-standing agency partners who has been a strong advocate for our platform. These efforts are already bearing fruit, with 10 new active partners joining our network this year, a testament to the value and potential of our platform.
Additionally, our consultancy business, which plays a crucial role in our overall sales process, has seen meaningful expansion. We have successfully onboarded new clients who, while still small, possess significant growth potential. Furthermore, we have extended contracts with several of our long-standing customers, reinforcing the strength and satisfaction within our existing client base.

Our collaboration with AWS continues to be a cornerstone of our growth strategy, yielding highly productive outcomes. Beyond our ongoing efforts to attract new customers, we are currently exploring innovative possibilities with AWS Gen AI Bedrock. This project has the potential to further enhance our platform’s functionality, opening up new avenues for differentiation in the market and adding significant value for our users.

Throughout the year, we have remained committed to continuously improving our platform. We've implemented numerous enhancements that broaden its capabilities, making it more versatile and user-friendly. These improvements not only increase the platform’s appeal to new users but also deepen the value we provide to our existing customers.

One of our most important goals remains achieving cash flow positivity, a milestone that is critical to our long-term sustainability and success. I am pleased to report that we have made significant strides in this area. Through diligent cost management and the steady progress of our sales efforts. In addition to our sales efforts, we have been optimizing our cost management. We anticipate seeing further positive impacts from these initiatives by the end of next quarter. Our focus on reducing expenses without compromising on growth initiatives has been key, and we are confident that our disciplined approach will soon yield the desired financial outcomes.

The progress we have made this quarter is a strong indicator that we are on the right path for growth, and I am excited about the opportunities that lie ahead. I want to extend my deepest gratitude to our team for their unwavering commitment and hard work, which continue to drive our success.

Regards
Jon Levin, CEO