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Bricknode year-end report 2022
Bricknode has today published its year-end report 2022. The report is attached to this press release and is available on the Bricknode website (https://www.bricknode.com/investors/financial-reports-calendar/).
- Net revenue increased by 9% to 4,647 (4,271) TSEK
- Net revenue retention rate 98% (115%)
- Earnings per share amounted to -0,56 (-0,88) SEK
- EBIT result amounted to -5,214 (-3,725) TSEK and the margin amounted to -112% (-87%)
- Agreements signed with three new wealth management customers
- Net revenue increased by 18% to 18,229 (15,385) TSEK
- Net revenue retention rate 101% (115%)
- Earnings per share amounted to -1,83 (-1,39) SEK
- EBIT result amounted to -17,521 (-8,459) TSEK
Comments from co-CEOs, Stefan Willebrand & Erik Hagelin:
2022 was a challenging year for many companies and the financial markets. At Bricknode we started the year prepared for long-term growth and an organization of just below forty people. As the markets softened, we had to adapt rapidly and unfortunately slim down the organization considerably and put many projects on hold for the future.
Despite these challenges, Bricknode's revenues increased every quarter in 2022, closing out the year at an all-time high. Our subscription-based recurring revenue model really set us apart from companies that are more dependent on project income. Bricknode has invested significantly in building its products, which allows us to increase revenues even in times like these.
On the cost side we launched an aggressive savings program during August 2022 resulting in extensive layoffs. The nature of the Swedish labor laws is such that notice periods are relatively long causing a delay in the reductions being reflected in the financial reporting. Q1 2023 will be the first quarterly report when the significant reductions will be evident. Q3 2022 and Q4 2022 were focused on respectfully reducing the number of team members in Bricknode, re-organizing around a smaller body and assigning roles to keep up with production and demands.
Shareholders provided a SEK 2.5m loan in December. We will continue to monitor our cash position very closely going forward and adapt according to business needs.
We have reduced fixed costs throughout the organization by making efficiencies and prioritizing activities. During 2022 our average monthly fixed cost was 930,000 SEK. This includes significant costs for the project where Bricknode is working towards establishing its own regulated securities brokerage firm together with large hosting costs. One of the important goals that we announced in the Q3 2022 report was to complete a large technical upgrade and a move to Azure from Amazon Web Services for our hosting before the end of December. We are happy to announce that this goal was indeed reached and because of this we could make efforts to optimize our hosting during January and February with significant cost reductions being obtained during Q1 2023 in this area.
Despite long sales cycles, we signed three significant customers within the wealth management area in December 2022 alone. We continue to work on a very strong pipeline of new prospective customers and partnerships.
While we have focused our efforts on delivering financial operations software to customers, we have also received a lot of interest in off-the-shelf end-user experiences. Responding to this, we were extremely pleased to have developed a new end-customer portal during 2022 which we plan to put into production in 2023. More firms are looking for a complete end-to-end solution when launching new financial services or transforming existing products. By launching our end-customer portal, we will be able to meet this demand.
Stefan Willebrand and Erik Hagelin will host the year-end 2022 earnings call & webcast on 23 February 2023 at 09:30 CET. Interested parties should register in advance: Webcast registration link (https://us06web.zoom.us/webinar/register/WN_HdBevkBbRqufc1EOzoJdrA).