Eyeonid

Highlights

• Targeting to finalize the potential acquisition of a Swedish SaaS IT security company in early March.
• Sales growth adjusted for invoiced subscription revenues, 203% compared to Q4 2023.
• Positive EBITDA adjusted for restructuring costs and invoiced subscription revenues: approximately MSEK 7,2, corresponding to an EBITDA margin of about 60%.
• Positive cash flow: KSEK 247 during Q4 2024.
• Contracted Annual Recurring Revenue (CARR) amounts to MSEK 33,7 based on contracted customers as of February 17. In the Q3 2024 report, CARR amounted to MSEK 28,3, based on contracted customers as of October 11.

Summary October - December 2024 (compared to the same period the previous year):

• Net sales adjusted for invoiced subscription revenues: KSEK 12 005 (KSEK 3 958)
• EBITDA adjusted for invoiced subscription revenues and restructuring costs: KSEK 7 246 (KSEK 61)
• Net sales for the period: KSEK 9 616 (KSEK 3 958)
• EBITDA for the period: KSEK 2 543 (KSEK 61), adjusted for restructuring costs: KSEK 4 857 (KSEK 61)
• Result for the period: KSEK -1 923 (KSEK -3 510)
• Sales per share: SEK 0,34 (SEK 0,14)
• Earnings per share: SEK -0,07 (SEK -0,12)
• Equity per share: SEK 2,12 (SEK 2,32)

Summary January - December 2024 (compared to the same period the previous year):

• Net sales adjusted for invoiced subscription revenues: KSEK 32 763 (KSEK 14 576)
• EBITDA adjusted for restructuring costs and invoiced subscription revenues: KSEK 18 037 (KSEK -4 062)
• Net sales for the period: KSEK 25 198 (KSEK 14 576)
• EBITDA for the period: KSEK 3 844 (KSEK -4 062), adjusted for restructuring costs: KSEK 10 472 (KSEK -4 062)
• Result for the period: KSEK -5 358 (KSEK -17 521)
• Sales per share: SEK 0,89 (SEK 0,51)
• Earnings per share: SEK -0,19 (SEK -0,62)
• Equity per share: SEK 2,12 (SEK 2,32)

Events During the Period

• The savings program's effects were realized by the end of Q1, securing savings of approximately MSEK 10 annually, compared to the initially estimated MSEK 7-9. The work of reviewing the cost side of the organization's structure has since continued, leading to additional savings of approximately MSEK 1, beyond the previous savings program, which are expected to take full effect at the beginning of Q4 2024.
• EyeonGroup changes CEO, Georg Tsaros steps down, and Fredrik Björklund, current Chairman, will assume the role of CEO starting September the 1st.
• EyeonGroup secures a MSEK 10 loan facility from the company's main owner.
• EyeonGroup hires Translink Corporate Finance as an M&A advisor.
• EyeonGroup establishes a sales office in Dubai.
• EyeonGroup signs several reseller agreements for the new B2B service.
• EyeonGroup takes over a former reseller's B2C business, now operated under the Protectia brand.
• EyeonGroup broadens its product portfolio through strategic licensing agreements for VPN and Password Manager.
• EyeonGroup signs reseller agreements with Yettel Bulgaria and a fintech company in the USA regarding Eyeon Group's id-protection service (white label).
• EyeonGroup to deliver a Proof of Concept to a banking group in the Netherlands and has signed a Letter of Intent with Locon in Poland for a white label solution.
• EyeonGroup updates its plan to accelerate the company's sales force, aiming to increase the sales team to 33 sellers by the end of August to achieve closed deals equivalent to approximately TEUR 440 per month. The goal is to reach sales of MSEK 100 for the fiscal year 2025.
• When Fredrik Björklund assumed the role of CEO on September 1, Børge Granli took over as Chairman of the Board. For the next Annual General Meeting in 2025, EyeonGroup's main owner, Mattias Kaneteg, has announced that he is available to the Nomination Committee for the upcoming term.
• EyeonGroup has signed a white label reseller agreement with a Nordic telecom operator for the resale of EyeonGroup's ID protection service.
• EyeonGroup has entered into an agreement with Mangold Fondkommission as a financial advisor in the process of changing stock exchange.
• EyeonGroup has entered into a white label agreement with Ekomni AB regarding the resale of EyeonGroup's ID protection service to Ekomni's customer groups in the Swedish market.
• EyeonGroup submitted an application for listing on Nasdaq First North but chose to withdraw it after evaluating the company's strategy for growth and cost efficiency.
• EyeonGroup has transferred the trademarks AreYouHacked and Protectia.
• EyeonGroup has launched a new comprehensive cybersecurity solution for B2B. In addition to the company's B2B service, Enterprise, the new package includes VPN, advisory services, and insurance.
• EyeonGroup's customer, Telenor Denmark, has upgraded its customer portal to the latest technology based on Dynamic Matching.

Events After the Period

• EyeonGroup has signed a Letter of Intent with the intention to acquire a reseller of VPN and antivirus.
• EyeonGroup, together with the reseller Miss Group, has launched the first White Label B2B portal under the name Miss Group Safe.
• EyeonGroup has signed a Letter of Intent with the intention to acquire a Swedish SaaS company in IT security.

CEO statement

2024 has been an eventful and successful year for Eyeon Group. We have experienced significant growth, implemented strategic cost-saving measures, and intensified our focus on product development and sales through partners. Through targeted efforts, we have strengthened our position as a leading player in proactive cybersecurity, creating value for both our customers and shareholders. I am pleased that we delivered positive cash flow during the last three quarters of 2024 and that our White Label partners experienced strong growth in 2024 and continue to show growth in 2025.

Strategic White Label Agreements
Throughout the year, we signed several significant agreements that further solidify our position within cybersecurity.

• Telecom Sector: We signed three strategic agreements, including with Yettel in Bulgaria and a leading Nordic telecom company. Additionally, we extended our partnership with Telenor Denmark for two years. We also saw strong growth with A1 and Yettel, with an increase of approximately 6,500 users in Q4.
• New Partnerships: Through our collaboration with Locon, we have established a strong presence in the Polish market, reaching the largest telecom companies with our services. We also began a partnership with Basekit, making our B2B solution available to their customers, including Etisalat and Telefonica.
• Banking Sector: We won a highly competitive tender in the Netherlands, defeating 30 other suppliers to secure a contract with a leading bank. This is a clear testament to our ability to deliver standout solutions.
• Hosting Market: A new collaboration with Miss Group, one of Europe's largest hosting providers, paves the way for our B2B solution to be offered within the hosting sector as well.

Operational Efficiency and Cost Savings
In 2024, we worked intensively to streamline our operations and reduce costs without compromising quality. Our cost-saving program, initiated in September 2023, achieved full effect by the end of Q1 2024, resulting in savings of approximately SEK 11 million annually.
We have also strengthened our management team over the year. I took on the role of CEO in September, and we have added key talents, including Alice Samuelsson, who leads product development, and Carl-Magnus Jönsson, our experienced CFO.

B2B Sales and New Products
One of the biggest successes of the year was the launch of our new B2B product for domain monitoring in May. This has enabled faster growth as our partners can now sell a pure B2B solution. At the same time, we have continued to expand our product range and launched two new integrated products in our B2B portal: VPN and identity theft insurance.

M&A Strategy and Future Outlook
In March 2024, we began a partnership with Translink to identify acquisition targets within cybersecurity. Our goal for 2025 is to complete 2-4 acquisitions to further accelerate our growth. We have already announced that in January 2025, we signed 2 LOIs.

With positive cash flow for three consecutive quarters and growth of approximately 125% in billing, we are stronger than ever as we approach 2025. With continued focus on product development, strategic partnerships, and operational efficiency, we are on track to achieve our goal of SEK 100 million in revenue for the year.
On behalf of the management team and all employees, I would like to thank you for an incredible 2024 and look forward to continued strong development in 2025.

Fredrik Björklund
CEO, Eyeon Group AB

Description of the business

Eyeon Group AB (publ) was founded in 2015 and is a SaaS provider that, through proprietary technology for collecting, analyzing and packaging data, develops and sells smart solutions that make life on the internet easier and safer for people, companies and organizations. The company provides business solutions within IT security, privacy protection services and AI-based data solutions. These are primarily aimed at the B2B market in Europe for industries such as e.g. banking, insurance and telecom.

Eyeon Group in short

Eyeon Group AB (publ) is the parent company of a group with the wholly-owned subsidiary EyeonID Intressenter AB,. During the period, the American subsidiary Eyeonid Inc and the Belgian subsidiary EyeOnText BVBA was liquidated and the Swedish subsidiary Protectiahas been divested. EyeonGroup's headquarters, including development, production, and administration, is located in Stockholm. As of April this year, the company has a sales office in Dubai.

This report covers the entire group's and the parent company's operations during the period from January 1 2024 to December 31 2024.

Financial overview

The The following section presents summarized financial information for EyeonGroup for the period October - December 2024, compared with the same period in 2023, as well as for January - December 2024, compared with January - December 2023. During the period, EyeonGroup has both acquired and divested its wholly-owned subsidiary Protectia AB, which has been included in the consolidated financial statements from May 1, 2024, to November 30, 2024. The consolidated result of the divestment amounts to KSEK -665. During the period, the subsidiaries Eyeonid Inc and EyeOnText BVBA were liquidated. The American company was primarily established to ensure a structure that complied with regulatory requirements based on the conditions at that time. As those conditions changed, there was no longer a reason to maintain the company. The consolidated result of the liquidation amounts to KSEK 2,154. During the period, extensive cost-cutting measures within the EyeonText business area were decided and initiated, with full effect of these savings achieved by the end of the first quarter of 2024. A dividend of KSEK 1,385 was decided for the subsidiary EyeonText to the parent company. The dividend has no impact on the consolidated result. With the closure of operations in Belgium, the Belgian company was liquidated during the third quarter of 2024, and the consolidated result of the liquidation amounts to KSEK 4,599.

Sales and results

October - December

The group's net sales for the period amounted to KSEK 9 616 (KSEK 3 958), with a net result of KSEK -1 923 (KSEK -3 510). The consolidated result from the divestment of Protectia AB amounts to KSEK -665.

Sales were distributed as follows:

B2B KSEK 4 127 (KSEK 0)

B2C KSEK 510 (KSEK 0)

B2B2C White label KSEK 4 979 (KSEK 3 958)

Invoiced subscription revenues amounted to KSEK 6 837 (SEK 0).

January - December

The group's net sales for the period amounted to KSEK 25 198 (KSEK 14 576), with a net result of KSEK

-5 358 (KSEK -17 521). The consolidated result from the liquidation of Eyeonid Inc amounts to KSEK 2 154, the liquidation of EyeOnText BVBA amounts to KSEK 4 599 and the divestment of Protectia AB amounts to KSEK -665.

Sales were distributed as follows:

B2B KSEK 5 316 (KSEK 0)

B2C KSEK 2 265 (KSEK 0)

B2B2C White label KSEK 17 616 (KSEK 14 576)

Invoiced subscription revenues amounted to KSEK 13 344 (SEK 0).

Liquidity and financing

As of December 31 2024, EyeonGroup's bank balances amounted to KSEK 6 418 (KSEK 7 365). The group had interest-bearing liabilities of KSEK 1 261 (SEK 0).

Investments

October - December

Eyeonid's total new investments during the period amounted to KSEK 2 556 (KSEK 3 432) and concerned intangible fixed assets amounting to KSEK 2 556 (KSEK 3 432) such as capitalized development costs, and tangible fixed assets amounting to KSEK 0 (KSEK 0).

January - December

Eyeonid's total new investments during the period amounted to KSEK 9 973 (KSEK 12 882) and concerned intangible fixed assets amounting to KSEK 9 965 (KSEK 12 882) such as capitalized development costs, and tangible fixed assets amounting to KSEK 9 (KSEK 0).

Depreciation

October - December

The period's result was charged with KSEK 3 836 (KSEK 3 830) in depreciation, of which KSEK 51 (KSEK 58) refers to depreciation on equipment, tools, and installations, KSEK 3 770 (KSEK 3 773) refers to depreciation of capitalized development costs, and goodwill depreciation of KSEK 15 (KSEK 0).

January - December

The period's result was charged with KSEK 15 243 (KSEK 14 214) in depreciation, of which KSEK 208 (KSEK 300) refers to depreciation on equipment, tools, and installations, KSEK 14 984 (KSEK 13 914) refers to depreciation of capitalized development costs, and goodwill depreciation of KSEK 51 (KSEK 0).

Equity

As of December 31, 2024, EyeonGroup's equity amounted to KSEK 60 266 (KSEK 65 801).

The share and share-related Instruments

As of December 31, 2024, the share capital of Eyeon Group AB was divided into 28 410 125 shares with a nominal value of SEK 0.2. All shares are of the same series and have the same right to vote and profit in the company. The shares in EyeonGroup have been traded on NGM Nordic SME under the ticker EOID since September 20, 2016. Since February 7, 2023, the shares in Eyeonid have been traded with ISIN code SE0019763988 after the share consolidation decided at the extraordinary general meeting on January 27, 2023. EyeonGroup does not have a liquidity guarantee agreement.

At the 2023 annual general meeting, it was decided to introduce the Employee Stock Option Program 2023/2026 and the Warrant Program 2023/2026. The programs are aimed at the company's employees and consultants. Each option under the respective program entitles the holder to subscribe for one share. The exercise period runs from September 1, 2026, to September 30, 2026. If all issued options are exercised to subscribe for shares, the number of shares will increase by 1,495,269 shares, corresponding to a dilution of approximately 5 percent of the total number of shares and votes in the company. Due to known personnel changes, the number of shares will increase by 897,159 shares upon full exercise of issued options, corresponding to a dilution of approximately 3% of the total number of shares and votes in the company.

Employees

As of December 31, 2024, Eyeonid had approximately 2 (5) employees and around 30 consultants affiliated with EyeonGroup.

Accounting principles

The report has been prepared in accordance with the Annual Accounts Act of Sweden and BFNAR 2012:1 Annual Report and Consolidated Financial Statements (K3). Applied principles are consistent with those described in the 2023 annual report.

Proposed Allocation of the Company's Results
The Board intends to propose to the Annual General Meeting that no dividend be distributed for the financial year 2024.

Annual General Meeting and Annual Report
The Annual General Meeting is planned to be held in May in Stockholm. The exact date for the publication of the annual report and the auditor's report will be announced no later than in connection with the notice of the Annual General Meeting. The annual report and the auditor's report will be published through a press release and subsequently made available on the company's website.

Upcoming reporting dates

Eyeon Group AB provides regular financial information according to the following schedule:

This report has not been subject to review by the company's auditor.

February 17, 2025

Eyeon Group AB (publ)

The Board of Directors

For further information, please contact:

Fredrik Björklund

CEO

+46 70-892 35 92

Carl-Magnus Jönsson

CFO

+46 73-545 53 50

This information is information that Eyeonid Group AB (publ) is obliged to disclose under the EU Market Abuse Regulation. The information was provided, through the contact of the above contact person, for publication on February 17, 2025, at 08.30 CET.

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