Press release
16 February 2024
Oneflow publishes its year-end report for January-December 2023:
October-December 2023 (compared to the same period last year)
- Net sales increased 39.5% to MSEK 28.4 (20.4). Share of Net sales outside Sweden increased to 33% (28) with paying users in 40 countries.
- EBIT was MSEK -26.5 (-24.4), with an EBIT margin of -93% (-120).
- Net income for the period amounted to -26.3 (-24.0).
- Basic earnings per share amounted to SEK -1.05 (-0.95) and diluted to SEK -1.05 (-0.95).
- Total ARR YoY increased 42.7% to MSEK 129.3 (90.6). Net New ARR for the fourth quarter increased 29.7% to MSEK 13.2 (10.1).
- During the quarter cash-flow from current operations amounted to MSEK -8.6 (-11.1).
- Total cash and cash equivalents amounted to MSEK 100.6 (211.7).
January-December 2023 (compared to the same period last year)
- Net sales increased 44% to MSEK 99.7 (69.1). Share of Net sales outside Sweden increased to 30% (25) with paying users in 40 countries.
- EBIT was MSEK -98.1 (-65.8), with an EBIT margin of -98% (-95).
- Net income for the period amounted to -95.5 (-67.3).
- Basic earnings per share amounted to SEK -3.80 (-2.89) and diluted to SEK -3.80 (-2.89).
- Net New ARR for the year increased 15.6% to MSEK 38.7 (33.5).
- Cash-flow from current operations amounted to MSEK -52.7 (-28.9).
- Total cash and cash equivalents amounted to MSEK 100.6 (211.7).
- According to the policy no dividend will be paid out.
Anders Hamnes, CEO and Founder of Oneflow, comments:
"Oneflow continued to deliver strong sales numbers during the last quarter of 2023. The ARR increased with an all-time-high of MSEK 13.2 during the quarter, ending the year at a total of MSEK 129.3, representing a year-over-year growth of 43%.
During the fall, and especially during the fourth quarter of 2023, we made the strategic decision to reduce our workforce, to further improve efficiency and optimize our organization and performance. This adjustment represented a modest reduction, impacting approximately 5% of our workforce. Some of the employees affected by the downsizing are currently within the termination period of the employment and will be compensated in the initial months of 2024. However, the entire termination costs have been allocated to the fiscal year 2023, resulting in a one-time expense of MSEK 1.2 in the fourth quarter.
Fourth quarter EBIT was MSEK -26.5, including the one-time expense, and in line with our internal projections. From the first quarter of 2024 and going forward, you'll see a steady improvement of our EBIT, quarter by quarter. Considering our current ARR and growth rate, our cost base - that now will be more or less fixed throughout 2024 - we'll maintain a sufficient cash position, and steer towards profitability with our current cash reserve.
We've seen a slight improvement in the gross retention rate throughout 2023, month by month, closing the year at 91.1%. We expect the gross retention rate to continue improving slowly going forward. The net retention rate is at a healthy level (110.2%), despite expansion ARR still being under pressure from customers downsizing and laying off employees rather than hiring. We expect the net retention rate to improve again as soon as the economic sentiment recovers.
Oneflow offers a critical product that is proven to reduce costs and increase productivity, delivering high value for money and a quick payback. We will never compromise our financial position and strive to make sound long-term business decisions. We maintain our financial targets of reaching an ARR of MSEK 500 and an EBIT margin of 20% during 2027.
Say contract, think Oneflow!"
Oneflow's report presentation webinar
Anders Hamnes, CEO and Founder of Oneflow, and Natalie Jelveh, CFO of Oneflow, will present the report and answer questions in a webinar at 10:00 CET on the same day. The presentation will be held in English.
To join the conference, please register here:
https://oneflow.zoom.us/webinar/register/WN_pKnXiTeJS_SEJtXiJqUS4A
Report and presentation will be available for download on our website here: https://oneflow.com/ir/investors/financial-reports/
This information is such information that Oneflow AB (publ) is obligated to make public according to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 16 February 2024 at 8:00 CET.
For further information, please contact:
Anders Hamnes, CEO and Founder
Mobile: +46 76 788 50 76
Email: anders.hamnes@oneflow.com
Certified Adviser is FNCA Sweden AB.
About Oneflow
Oneflow develops, sells, and implements digital contract management and automation systems. Oneflow believes that contract processing today, both in Europe and globally, is characterized by manual and paper or file-based contract management, resulting in a high degree of time and resource-intensive administrative work and high exposure to human errors. With Oneflow, companies can handle all types of contracts before, during, and after signing digitally within one single platform, automating and streamlining the entire contract management process from start to finish.
