3.12.2024 09:00:01 EET | Digital Workforce Services Oyj | Company Announcement
Company Announcement December 3, 2024 at 9am EET
Digital Workforce Services Plc refines its strategy and raises its profitability targets by 2026
Digital Workforce Services Plc has successfully executed a profitable growth strategy based on holistic business process automation during the current strategy period (2022-2026). The company's Board of Directors has confirmed the focus areas for strategy execution, with the aim of accelerating the company's profitable growth during the end of the period.
The cornerstones of strategy execution towards the end of the strategy period are:
- Revolutionize the way large organizations do knowledge work: We are expanding our continuous services business and Outsmart automation platform with Enterprise AI Agents by creating unique, measurable customer value to knowledge work automatization.
- Transformation of Outsmart automation services' core business: We maximize customer benefits from our productized service offering. We use AI to improve the scalability of continuous services and the productivity of automation deployment. We enable customers to automate on a larger scale faster than ever before.
- Market leader in social and healthcare care pathway solutions: We focus on productized automation solutions for care and customer pathways. We will radically renew the follow-up of long-term conditions, improving patient safety and the productivity of healthcare professionals.
- Accelerating growth through acquisitions: We are actively looking for acquisition opportunities that support the cornerstones of our strategy and profitable growth.
Refined company financial targets for the strategy period:
- The company aims for an annual revenue of EUR 50 million in 2026. Revenue of approximately EUR 40 million is expected through organic growth and approximately EUR 10 million through inorganic growth. The share of strategically important continuous services is aimed to increase to over 70% of revenue during the strategy period.
- The company aims to reach an adjusted EBITDA level of over 15% by the end of 2026.
Previous financial targets for the strategy period:
- Growth: Digital Workforce aims to achieve annual revenue of EUR 50 million by the end of 2026.
- Profitability: Adjusted EBITDA margin of over 10% by the end of 2026.
Chief Executive Officer Jussi Vasama:
"In the summer of 2024, Gartner introduced a future direction of process automation market called BOAT (Business Orchestration and Automation Technologies), which is similar to the Outsmart offering launched by our company in 2022. We have now also included autonomous digital workers, Enterprise AI Agents, in our service offering, which will significantly change knowledge work and its automation.
We have researched, tested, and piloted generative AI-based AI agents with multiple technologies during 2024. We announced in June 2024 the strategic partnership with Sema4.ai. Sema4.ai is a pioneering U.S. company that has developed technology for demanding enterprise-level use that enables the developing, managing, and scaling AI agents in an enterprise environment. AI agents enable Digital Workforce to grow its strategically important continuous service invoicing at scale. In our view, AI agents will radically revolutionize the possibilities for automating knowledge work and multiply the business benefits for customers.
Our extensive automation and technology expertise makes us a reliable partner to help both our existing customers and new large organizations find the right targets and quickly achieve business benefits with AI agents. For large organizations, it is critical to quickly increase understanding of what AI agents are and how they can be utilized. In January 2025, we will launch the agentacademy.ai online training service, which provides a channel for fast learning for both business decision-makers and automation teams.
Healthcare is a strategic focus area for our company. In our main geographic markets, we have created several different Care Pathway automation solutions, such as long-term follow-up of cancer patients or access to emergency care. In the future, we will focus more and more on automating care pathways and customer journeys. Our company's strong position as a healthcare automation solutions provider puts us in a unique position to implement solutions in a quick and agile way, generating customer benefits and increasing patient safety. In practice, this will ensure that all patients on long-term follow-up are treated in line with best practice, while optimizing the productivity of healthcare staff.
An extensive study will be completed in December where the productivity potential of process automation is mapped in four well-being services counties in Finland. Preliminary results show that automation can achieve a productivity potential of tens of millions of euros per well-being services county. We will continue the study in January 2025 with several well-being services counties to form a broader picture of the productivity potential of automation in the well-being services counties throughout Finland. We will publish the full results of the study in spring 2025.
The company is exploring acquisition opportunities that support its strategy. These may include acquisitions that, for example, increase in-depth knowledge of the company's key growth markets, like the United States and the United Kingdom, healthcare processes and operations, or technological know-how. Our goal is to complete 1-3 transactions to achieve EUR 10 million revenue growth through acquisitions."
Digital Workforce will present its refined strategy at an event on 4 December 2024 at 3 pm (EET). You can follow the webcast live or watch the recording after the event at https://digitalworkforce.videosync.fi/companypresentation-startegyupdate. The presentation material will be available after the event on the company's website at https://digitalworkforce.com/investors/reports-and-presentations/. The presentation will be held in English.
For further information. please contact:
Jussi Vasama, CEO, Digital Workforce Services Plc. Tel. +358 50 380 9893
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Aktia Alexander Corporate Finance Oy. Tel. +358 50 520 4098
About Digital Workforce Services Oyj
About Digital Workforce Services Plc
Digital Workforce Services Plc is a leading business process automation services and technology solution provider globally. Digital Workforce Outsmart services and technology solution suites allow organizations to save costs, accelerate digitalization, increase revenue, improve customer experience, and gain a competitive advantage. Globally, over 250 large customers use Digital Workforce's services and technologies to transform their businesses with automation. Founded in 2015, Digital Workforce currently employs over 200 business automation specialists in the US, UK & Ireland, and Northern and Central Europe. Digital Workforce is publicly listed in Nasdaq First North Growth Market Finland. https://digitalworkforce.com
