Speqta AB (publ) Interim Report for the period January 1–March 31, 2024 is published and available on: https://speqta.com/en/investors/financial-reports

First quarter results in brief

• ARR grew by 46 %, compared to the previous year, to KSEK 65,792 (44,967). 
• Net sales in the first quarter amounted to KSEK 17,163 (12,820), a yearly increase of 34 %, mainly consisting of organic growth in BrightBid. 
• Recurring revenue amounted to KSEK 13,187 (9,297) during the quarter, a yearly increase of 42%.
• The EBITDA result amounted to KSEK -11,066 (-6,449). Adjusted EBITDA amounted to KSEK -11,066 (-6,449). Already executed cost synergies from the merger have clearly lowered the operating costs, and is expected to be further reduced during the second quarter. 
• Earnings per share amounted to SEK -0.68 (-0.50).
• Cash flow from operating activities amounted to KSEK -12,474 (-2,341), which is an improvement of KSEK 5,336 compared to the previous quarter of KSEK -17,810. The ongoing effect of the cost synergies in combination with continued growth, means that Speqta is positive about the development of cash flow going forward.
• Cash and cash equivalents at the end of the period amounted to KSEK 6,979 (7,903). The direct issue executed on April 10, 2024 increased the cash by MSEK 55.
• Number of customers grew to 488 (393), a yearly increase of 24%.

Events during the quarter

• The Board appointed BrightBid's CEO Gustav Westman as Group CEO of Speqta and he took up the position on January 3, 2024. Speqta's former CEO Fredrik Lindros, has been elected as an ordinary member of the Board, at the Extraordinary General Meeting (“EGM”) on February 2, 2024.
• The Extraordinary General Meeting on February 2, decided to amend the Articles of Association and adjust the share capital to a minimum of MSEK 120 and a maximum of MSEK 480, and the number of shares shall be a minimum of 24 million and a maximum of 96 million. The EGM also decided to authorize the Board of Directors to decide on the issue of shares, warrants and/or convertibles with a maximum dilution of 30 %.
• Board of directors did not propose a dividend, which was decided on the Annual General Meeting
• Speqta carried out a directed new share issue of 12,222,222 shares, corresponding to approximately SEK 55 million at a subscription price of SEK 4.50 per share. Two major reputable strategic investors Fåhraeus Startup and Growth Fund (FSG) and Solberget Invest AB stood for the majority of the directed issue, which was oversubscribed.

Events after the quarter

• The Extraordinary General Meeting April 10th approved the Board's decision to issue new shares with deviation from the shareholders' preferential rights, and to reduce the share capital without withdrawal of shares. It was also decided to amend the Articles of Association so that the share capital shall amount to a minimum of MSEK 80 and a maximum of MSEK 320. The company's share capital amounted to SEK 83,051,218 divided into 24,213,183 shares (before the decision and registration of the directed share issues, which changed the share's quota value to SEK 3.43 per share.
• The Annual General Meeting May 17th (“AGM”) elected a new board via re-election of Mikael Lindblom, Anders Gustafsson and Christos Stavropoulos, and new-election of Linus Wiebe, Henrik Garvner, Johan Dahlqvist and Anders F. Börjesson. Linus Wiebe was elected as chairman of the board of directors.
• The AGM also decided to rename Speqta AB to BrightBid Group AB. The new name will take effect in July with a new IR page ir.brightbid.com and a new ticker: STO:BRIGHT.

CEO Comment
In the first quarter, we set a new ARR record of 65.8 MSEK and grew by 46% compared to last year. Thanks to Nordic successes and a leaner cost structure, a positive EBITDA future during next year is being built. With FSG and Solbergets investments, we will continue our growth and invest in new advertising platforms, preparing us for a more global rollout. We will adopt a new group identity as BrightBid, representing our unique, AI-powered SaaS and Adtech vision, ready to take on 2024 with full force.

65.8 MSEK in ARR and changing cost structure. As we close the first quarter of 2024, BrightBid continued to grow its ARR (annual recurring revenue) with +46% YoY and reached 65.8 MSEK, marking an important milestone in our journey. Growth was largely driven by the acquisition of new customers, primarily in the Nordics, demonstrating our growing influence and the scalability of our business across markets.

With the post-merger synergies, we have successfully reduced our operating costs. We expect most of the cost reductions to be realized in the first half of the year, and mostly in Q2. During Q1 cash flow from operating activities improved with 5.3 MSEK compared to the previous quarter. Adjusted for the upcoming direct issue-related transaction costs, the company is now on the right path to reach a positive EBITDA and become cash flow positive during the course of next year.

Two new major strategic investors. The recent The recent private placement has strengthened the shareholder list with several strategic investors who improved our financial stability by an additional SEK 55 MSEK. The capital injection is earmarked for three strategic areas: firstly, to drive our organic growth and further refine our proven go-to-market model; secondly, to develop new customer channels, especially through digital agencies to boost organic growth; and thirdly, to expand BrightBid's offering to additional advertising platforms such as Meta, LinkedIn and TikTok, thereby broadening our service offering. I particularly welcome the two major reputable investors, FSG and Solberget Invest AB, who have joined the board. FSG has taken over the chairmanship through Linus Wiebe and I look forward to learning from their experience and working closely with them to take BrightBid to new heights.

New group name for clarification: BrightBid. In line with the strategic changes of recent years, we will change the name of the group from Speqta to BrightBid. This change signals our transition from a diversified group of companies to a single, focused AI-based SaaS provider in the Adtech space. As one of the fastest growing in the Nordics, we are now positioned to meet our customers' global needs more effectively, thanks to our universal platform that does not require any local geographical adaptations. Going forward, all investor relations and future communications will be channeled through ir.brightbid.com, starting in the second half of 2024.

For me personally, I will focus on maintaining our entrepreneurial spirit that has been the guiding star in BrightBid's growth journey so far. We have a great team and we will, with our new major owners, continue 2024 forward with great energy and high ambitions.

Gustav Westman, CEO Speqta AB (publ)

Financial calendar
Year-end report 2024: 19 February 2025
Interim report January–September: 13 November 2024
Interim report January–June: 22 August 2024

This information is such information that Speqta AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the agency of the contact person below, for publication on May 31, 2024 at 07:00 CET.

Contact:
Gustav Norberg, CFO Speqta AB
Mobile: +46 (0) 72 084 85 48
E-mail: info@speqta.com
www.speqta.com

About Speqta
Speqta is an Adtech company that enables online advertisers to optimise their marketing through data and AI. The company’s SaaS service BrightBid (including Bidbrain) is a tool to give customers the best possible results and bridge different ad platforms. Speqta is listed on Nasdaq First North Premier Growth Market in Stockholm under the ticker “SPEQT”. Redeye AB serves as the company’s Certified Adviser.