Divio Technologies AB Publ grows net sales by 12% and expands new sales strategy
SUMMARY OF THE HALF-YEAR REPORT
FOR THE PERIOD 1 JANUARY 2022 TO 30 JUNE 2022
- MRR in June was KUSD 136 (146)
- Net sales increased by 12%, or KSEK 9,035 (8,096)
- Subscription revenue was KSEK 7,628 (7,459)
- Operating loss was KSEK -5,615 (-4,744)
- EBITA was KSEK -5,643 (-5,253)
SIGNIFICANT EVENTS DURING THE HALF YEAR
- Onboarded a large global non-profit organisation
- Achieved ISO 27001 certification
- Strengthened the board of directors with the recruitment of Leif Liljebrunn who also took over as Chairman
- Onboarded 4 CloudFlare customers
- Established a sales team for DACH (German, Austria & Switzerland) market
IMPORTANT EVENTS AFTER THE HALF YEAR
- MRR in August is expected to be 141 KUSD compared to 136 in June
- Recruited a new CFO: Fredrik Wallmark, formerly CFO of Bambuser
- Initiated a new sales strategy targeting mid-sized companies with typically shorter sales cycles
| Key indicators | Jan–June 2022 | Jan–June 2021 |
| MRR (monthly recurring revenue) KUSD | 136 | 146 |
| Subscription revenue, KSEK | 7,628 | 7,459 |
| Cash and cash equivalents at the end of the period, KSEK | 7,953 | 18,875 |
CEO COMMENTS
I am very pleased that the first half of the year has been so productive for Divio. We have worked hard to achieve ISO certification and have continued to win new customers. In addition, we have improved the efficiency, and the results, of our sales process. I am also pleased to welcome Leif Liljebrunnto the Board, with his extensive experience of growth companies.
At the AGM, Leif Liljebrunn was elected as our new Chairman. Leif has extensive experience of growing smaller companies and has achieved success with Visma and ZetaDisplay, both as CEO and as a board member. Leif has also gained extensive sales experience at several SaaS companies. He has been following Divio for a while and became increasingly involved in the spring before joining the company in June.
We have also recruited a new CFO - Fredrik Wallmark, who has extensive experience from listed companies such as Bambuser, EU-Supply and Footway. I have long promised improvements in the dialogue with shareholders, and expect both frequency and clarity to improve with Fredrik on board. I will also be able to increase focus on developing the organisation and dedicate more time to the sales team. To further improve communication with the market, we will, as previously announced, begin reporting quarterly from Q3 2022 onwards.
The efforts we have put into ISO compliance were rewarded in February with a well-deserved ISO 27001 certification. Our state-of-the-art platform is the heart of Divio, and we are continuously striving to improve it and maintain oru lead over competition. We cater for businesses with stringent security requirements and compliance requirements, so our platform must meet the highest possible standards. Having ISO certification means an independent body verifies that we meet all these requirements. We have also put extensive work into ensuring a smooth process both for procurement and especially when pitching and onboarding on new clients.
Sales have started to pick up in the first half of the year and I am especially gratified by our agreement with a large global non-profit organisation which has already more than doubled its investment in Divio in a short space of time. MRR was down slightly due to a decrease in work from an existing customer, but has now almost recovered. Overall our client base continued to grow. We are also very pleased with the results of our partnership with CloudFlare which has resulted in four new customers and continues to generate additional business.
Following a thorough analysis of the market and our existing customers as well as dialogues with new customers, we have decided to extend our sales strategy and reposition the company to accelerate growth. We have developed a platform designed to meet the requirements of enterprise customers in terms of capacity, security, support, etc. These are qualities that small and medium-sized enterprises also desire but often cannot afford. However, the flexibility of our platform enables us to offer medium-sized customers an enterprise solution at a cost they can afford. An advantage of smaller and medium customers is that they typically have much shorter and simpler decision-making processes. They tend to seek partners who see and value their potential and regard them as an important customer. We expect to gain a lot more business from companies we can grow with. Best of all, we have already gained buy-in for our new direction which also means a new communications approach and a simpler process for our sales team.
We have learnt a lot over the past year and I am proud of the efforts of our excellent team, which continues to grow and achieve great results - as confirmed by customers who praise our solution. We are getting closer and closer to the well-deserved breakthrough and success.
Jon Levin
CEO
The full report is available at
https://www.divio.com/company/investors/
This disclosure contains information that Divio is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 24-08-2022 08:09 CET.