Net sales

Divio Technologies AB (Publ) increases net sales by 12% and expands new business strategy

SUMMARY OF THE HALF-YEAR REPORT

FOR THE PERIOD JANUARY 1, 2022 To JUNE 30, 2022

  • The MRR in June was KUSD 136 (146)
  • Net sales increased by 12% to KSEK 9,035 (8,096)
  • Subscription revenue was 7,628 KSEK (7,459)
  • Operating loss was KSEK -5,615 (-4,744)
  • EBITA was KSEK -5,643 (-5,253)

SIGNIFICANT EVENTS OF THE SEMESTER

  • Joined a large global non-profit organization
  • Obtaining ISO 27001 certification
  • Reinforcement of the Board of Directors with the recruitment of Leif Liljebrunn who also takes over as Chairman
  • Integrated 4 Cloud Flare clients
  • Creation of a sales team for DACH (German, Austria & Swiss) market

IMPORTANT EVENTS AFTER THE SEMESTER

  • The MRR in August should be 141 KUSD against 136 in June
  • Recruitment of a new CFO: Fredrik’s Wallformerly Chief Financial Officer of bamboo
  • Launched a new sales strategy targeting mid-sized companies with generally 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 happy that the first half of the year has been so productive for Divio. We worked hard to achieve ISO certification and continued to win new customers. Additionally, we have improved the efficiency and results of our sales process. I am also pleased to welcome Leif Liljebrunnt to the Board of Directors, with his extensive experience in growing businesses.

At the AGM, Leif Liljebrunn was elected our new President. Leif has extensive experience growing small businesses and has been successful with Visma and DisplayZeta, both as CEO and as a member of the Board of Directors. Leif also gained extensive sales experience in several SaaS companies. He followed Divio for a time and became increasingly involved in the spring before joining the company in June.

We have also recruited a new Chief Financial Officer – Fredrik’s Wallwho has extensive experience with listed companies such as bamboo, EU Supply and Footway. I have long promised improvements in shareholder engagement, and expect the frequency and clarity to improve with Fredrik on board. I will also be able to focus more on the development of the organization and devote more time to the sales team. In order to further improve communication with the market, we will, as previously announced, start publishing quarterly reports from the third quarter of 2022.

Our efforts to comply with the ISO standard were rewarded in February with a well-deserved ISO 27001 certification. Our state-of-the-art platform is at the heart of Divio, and we continually strive to improve it and stay ahead of the competition. We cater to businesses with strict security requirements and compliance requirements, so our platform must meet the highest possible standards. Having ISO certification means that an independent body verifies that we meet all these requirements. We have also put considerable effort into ensuring a smooth process both for sourcing and especially when introducing and onboarding new customers.

Sales started to pick up in the first half of the year and I’m particularly pleased with our deal with a large global nonprofit that has already more than doubled its investment in Divio in a short time. MRR decreased slightly due to reduced work from an existing client, but has now almost recovered. Overall, our customer base continued to grow. We are also very satisfied with the results of our partnership with Cloud Flare which resulted in four new customers and continues to generate additional business.

After a thorough analysis of the market and our existing customers as well as dialogues with new customers, we decided to expand our business strategy and reposition the business 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 businesses also want, but often cannot afford. However, the flexibility of our platform allows us to offer midsize customers an enterprise solution at an affordable cost. An advantage of small and medium customers is that they generally have much shorter and simpler decision-making processes. They tend to look for partners who see and value their potential and see them as an important customer. We expect to win a lot more business with companies we can grow with. Even better, we have already gained buy-in for our new leadership, which also means a new communication approach and a simpler process for our sales team.

We’ve learned a lot over the past year and I’m proud of the efforts of our great team, who continue to grow and deliver great results – as confirmed by customers who appreciate our solution. We are getting closer and closer to well-deserved breakthrough and success.

Jon LevinCEO

The full report is available at
https://www.divio.com/company/investors/

This disclosure contains information that Divio is required to make public in accordance with the EU Market Abuse Regulation (EU No. 596/2014). The information has been submitted for publication, through the contact person, the 24-08-2022 08:09 CET.

press inquiries
For more information on Divio Technologiesplease visit divio.com or contact the CEO Jon Levin ([email protected]) +46 732 44 70 66.

The company’s certified advisor is FNCA Sweden AB: +46(0)8-528 00 399, [email protected]

About Divio Technologies
Divio Technologies AB (Publ) is the Cloud management software development group behind the Divio platform, which simplifies cloud hosting, deployment and development via a PaaS solution. The platform enables companies to reduce costs, time to market and employee burden, as well as reduce reliance on cloud providers.

https://news.cision.com/divio/r/divio-technologies-ab–publ–grows-net-sales-by-12–and-expands-new-sales-strategy,c3618665

https://mb.cision.com/Main/16840/3618665/1618176.pdf

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