Göteborg, Sweden, 25 October 2023.
The third quarter in summary (July-September 2023)
- Net sales increased by 11.1% (12.8%) and totaled tSEK 61,065 (54,976). Currency-adjusted net sales growth totaled 2.6% (7.3%).
- Operating profit totaled tSEK 20,427 (13,563) and the operating margin was 33.5% (24.7%). No expenses affecting comparability have been expensed.
- The total number of paying subscribers at the end of the period was 887,000 (912,000), a decrease of 2.7% compared with the previous year.
- Average Revenue per User (ARPU) for the quarter totaled SEK 276 (239), a growth of 15.5% (14.4%).
- Earnings per share before dilution for the quarter totaled SEK 0.82 (0.55). Results per share after dilution totaled SEK 0.82 (0.54).
Nine months in summary (January-September 2023)
- Net sales increased by 11.5% (16.8%) and totaled tSEK 175,745 (157,569). Currency-adjusted net sales growth totaled 2.2% (14.4%).
- Operating profit totaled tSEK 44,251 (39,099) and the operating margin was 25.2% (24.8%).
- Adjusted operating profit totaled tSEK 49,082 (39,099) and adjusted operating margin was 27.9% (24.8%). During 2023, non-recurring items of in total tSEK 4 533 related to the optimization program and tSEK 298 related to the public cash offer from Velvet Cichlid during 2022 affecting comparability have been expensed.
- The total number of paying subscribers at the end of the period was 887,000 (912,000), a decrease of 2.7% compared with the previous year.
- Average Revenue per User (ARPU) for the period totaled SEK 261 (231), a growth of 13.0% (10.0%).
- Earnings per share before dilution for the period totaled SEK 1.77 (1.59). Results per share after dilution totaled SEK 1.77 (1.55).
Important events during the reporting period
- At an extraordinary general meeting held on July 26, Sleep Cycle's founder and majority shareholder Maciej Drejak was elected as a new board member.
- On August 25th it was announced that Erik Jivmark was being appointed as the new CEO to replace Carl Johan Hederoth. Erik Jivmark takes over on November 1; the company's CFO Per Andersson is serving as acting CEO for the period October 1 to October 31.
- In September, Sleep Cycle released new features that align with the updates in Apple iOS 17 and Watch 10.
Important events after the period end
No significant events have occurred after the reporting period.
Commenting on the quarter, acting CEO Per Andersson says:
"The third quarter was successful for Sleep Cycle as we delivered the highest operating margin since the IPO in 2021. At the same time, the number of subscriptions increased for the first time since new prices were implemented during 2022. I am very pleased that we have managed to grow the subscriptions base while also improving the margin. The success is spelled cost efficient user acquisition, a result from core product focus with new features attracting users and increasing the conversion rate".
"We are currently in a strong momentum after several successful feature launches in the third quarter. One of these are the new features released as part of Apple's iOS 17 launch, which have been performing very well thanks to a good cooperation with Apple. With a strong product roadmap, increased investments in AI and several exciting partnership discussions, we are in a good position to capitalize on our success and further increase the growth rate going forward".
This information offered is such that Sleep Cycle AB is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the care of the below contact person, for publication on 25 October 2023 at 8:30 CET.
The full interim report is available on https://investors.sleepcycle.com
Acting CEO and CFO Per Andersson will give a presentation on Wednesday 25 October at 9:30 CET. The presentation can be followed on https://ir.financialhearings.com/sleep-cycle-q3-2023
For more information please contact:
Per Andersson
Acting CEO and CFO
per.andersson@sleepcycle.com
+46 70 939 5327
About Sleep Cycle
With millions of daily active users and over two billion nights analyzed in more than 150 countries, Sleep Cycle is the leading sleep tracking application and one of the most widely used solutions worldwide to improve sleep health. Sleep Cycle's mission is to improve global health by empowering people to sleep better. Since its launch in 2009, Sleep Cycle has helped millions of people understand their sleep habits and improve their sleep. The mobile application helps users fall asleep more easily, tracks and analyses sleep during the night, wakes the user in a light sleep phase and provides insight into how sleep quality is best improved. Sleep Cycle is one of the world's most comprehensive sources for statistics on sleep and contributes to research and reporting on sleep worldwide. Sleep Cycle is listed on Nasdaq Stockholm under the ticker SLEEP. The head office is located in Gothenburg, Sweden.
