Upsales Technology

October - December 2024 (compared to the same period last year, Upsales group)

• Net sales increased by 0.5% to MSEK 36.4 (36.3)
• Annual recurring revenue (ARR) at the end of the quarter was MSEK 141.9, an increase of 1% during the last 12 months
• ARR increased by MSEK 3.5 during the quarter 
• EBITDA amounted to MSEK 5.5 (9.2)
• EBITDA margin was 15.1% (25.3%)
• Operating profit (EBIT) amounted to MSEK 3.3 (7.1)
• Net income amounted to MSEK 2.6 (5.8)
• Cash flow from operating activities amounted to MSEK 20.8 (9.8)

January - December 2024 (compared to the same period last year, Upsales group)

• Net sales decreased by 0.3% to MSEK 144.8 (145.2)
• EBITDA amounted to MSEK 31.9 (42.6)
• EBITDA margin was 22.0% (29.4%)
• Operating profit (EBIT) amounted to MSEK 23.0 (34.4)
• Net income amounted to MSEK 18.5 (27.6)
• Cash flow from operating activities amounted to MSEK 30.7 (32.4)

CEO COMMENT
ARR growth continued to accelerate in Q4, driven by lower churn and an all-time high in new customer acquisition. We continue to see the results of our strategic focus on positioning and our investments in the product. 

In Q4, ARR amounted to MSEK 141.9, an increase of MSEK 3.5 during the quarter. Net sales increased by 0.5% to MSEK 36.4 (36.3) compared to the same period last year. EBITDA amounted to MSEK 5.5 (9.2), with a margin of 15.1% (25.3%). Operating profit (EBIT) was MSEK 3.3 (7.1), and cash flow from operating activities was MSEK 20.8 (9.8). Profit margins are slightly lower, which is explained by a period of slower revenue growth while we continue to invest in the product. We expect margins to improve as revenue growth resumes and accelerates during the year. For the annual general meeting, the board proposes an ordinary dividend of 1.50 SEK per share.

The release of Upsales AI is expected to accelerate growth further in 2025, with significant interest from existing and new customers. In this report, I have included a dedicated section about our pivot to an AI company and our exciting investments in this area. Growth is expected to continue to accelerate throughout the year, and we expect ARR growth to take off significantly in 2025. At the end of 2024, we launched our new, simplified pricing structure, which includes our new AI features. This new product, called Upsales Accelerate, replaces all previous price plans, and we expect significant upsell ARR due to current customers' demand for our AI services and features. The new pricing plan is a highly competitive, “all-inclusive” package with positive early feedback from existing and new customers.

Upsales AI and our vision for the future
Upsales has a long track record of building automated tools that help companies drive revenue growth in a cost-effective way. The AI project at Upsales is the most significant investment ever in the product. To make sure our customers get top-notch AI tools, this project has involved a big part of the company, as well as external partners, including some of the best experts available. Our motto when building the product has been “AI is not a feature”. If you want to be a competitive SaaS company in 2025 and beyond, it will not be enough to “add some AI” features here and there. You have to challenge old ways of working and drive innovation completely. Our goal has been to build the best European data model for driving B2B revenue growth, a true game changer for our clients, and help them create disruptive growth. With our long history of offering company data as a part of our software, we are well-positioned to supercharge our offering with AI. We have added a lot of data to Upsales that customers can use to understand existing customers, find new markets and opportunities, and identify risks. The most important goal has been to go beyond AI's most obvious use cases, like automating simple tasks like writing emails, summarising meeting notes, etc. Our focus has been on the use cases that have the potential to drive significant revenue growth for our customers. We are essentially building strategic AI tools for CEOs and other senior executives who are looking to use AI to grow faster. This led us to build a very sophisticated financial data model that can be used to forecast demand from customers and their segments automatically. We do this by collecting and analysing enormous amounts of data every day. Upsales AI analyses financial data for 80 million European companies, 1 million news articles (every day), and macroeconomic indicators, to name a few examples. Giving our customers insights that used to only be available for large companies with a dedicated budget for market research. Customers can use this to analyse the revenue potential and risks within existing customer segments and make recommendations for new segments. At its core, our model maps relationships and dependencies between companies, which allows our clients to “follow the money” and understand what events and developments will affect which companies in a very detailed way. I am very excited to see how customers will use Upsales AI to support their growth ambitions, and I look forward to exploring the many use cases we see throughout 2025 and beyond.

Daniel Wikberg
Founder & CEO