Divio Technologies AB (Publ) has increased sales by 27%, won another global wealth management bank as a customer and enhanced the efficiency of the company

• Total revenue amounted to 9,802 (8,104) KSEK

• Revenue from subscriptions and professional services amounted was 6,290 (5,868) KSEK
• Operating loss for the period was -9,938 (-10,143) KSEK
• Earnings before tax for the period was -10,130 (-10,107) KSEK

Significant events during the period

• Cost reduction to reach profitability faster, will affect the result in the second half of the yearDirect Issue of 8 MSEK in March
• Strengthened the board with a new chairman, Måns Danielson, and a new board member, Anette Ringnér.
• Onboarded important enterprise customers to grow with
• Reorganisation to increase efficiency and agility

Important events after the period

• Direct Issue of 5 MSEK in July 2020
• Enhanced the sales strategy
• Improved profitability of smaller customers

CEO Comments
I am pleased and very proud that we have succeeded in building an excellent sales operation in such a short time. We are already experiencing the benefits, in an expanding sales pipeline and a growing number of deals signed. One example is our new collaboration with GWM Innovation Lab of UBS Switzerland, part of the world’s largest wealth-management institution. 

Subscription revenue is also 27% higher than for the same period in 2019. This is recurring revenue that will continue to grow steadily – as will the cloud industry in which we operate as a valuable complement to the services of Amazon, Google and Azure.

Our business is based on recurring revenues and long-term agreements, and we can state with confidence that we have proved our business model. Customers are increasing their business, adding more and more projects to our platform. And we are succeeding in retaining almost all paying customers – evidence that we are providing real value to them.

This is very much how our business works. Customers typically start with a small project to test our platform and make sure we fulfil all the necessary requirements. When they experience our high standards and see how much they can gain from our platform, they add further projects and the customer account grows.
As part of the organisational changes, and in line with the overall goal to reach profitability, we have reviewed all costs and made some major adjustments and savings. I am delighted to announce that we have managed to cut costs by almost 50%. While doing this, we have maintained efficiency levels and increased them in some areas. We have worked hard to streamline processes and shorten the time from idea to solution. This is a measure of our scalability, which is a key foundation for future growth. These savings will first be reflected in the results for the next half year.

We have continued to make it easier for prospective customers to explore and adopt our platform, and we have made significant investments in innovative functionality. One example is our automated cloud-shifting technology, which makes it possible to migrate a complex web application from one cloud vendor to another in just minutes. We have also enhanced the interface for a better user experience, providing more powerful application management and oversight. We lead the field in terms of technology and offer functionality that most competitors cannot.

It’s impossible not to mention the ongoing global pandemic, which affects us all in one way or another. This turbulent situation has actually led to increased interest in our solutions, as we enable lower costs, reduced dependence on technical staff and a better environment for cooperation among developers. It’s impressive to see how the whole team has stepped up and put in even harder work during the pandemic, including pro bono work to help the Swiss Government build a tool that enables police, hospitals and testing centres to collect frequent status updates from frontline responders.
Divio has built a solid foundation for growth, and we have a strong and dedicated team in place. We already see significant trends in our favour, and the overall market potential is enormous. I look forward to continued success for our customers and us in the second half of the year.

Jon Levin

CEO