Sleep Cycle AB: Sleep Cycle Year-end report 2024: A strong year marked by continuous growth

The fourth quarter in summary (October-December 2024)

• Net sales totaled tSEK 66,756 (61,254) and increased by 9.0% (10.6%). Currency-adjusted net sales growth amounted to 8.0% (5.7%).
• Operating profit amounted to tSEK 21,543 (12,689), with an operating margin of 32.3% (20.7%). The quarter has not been affected by any costs affecting comparability.
• The total number of paying subscribers at end of period was 918k (893k).
• ARPU in the quarter totaled SEK 279 (272). Currency-adjusted ARPU amounted to SEK 276.
• Earnings per share before and after dilution for the quarter amounted to SEK 0.86 (0.52).

The full year in summary (January-December 2024)

• Net sales totaled tSEK 261,529 (236,146) and increased by 10.7% (11.4%). Currency-adjusted net sales growth amounted to 9.8% (3.1%).
• Operating profit amounted to tSEK 76,962 (56,606), with an operating margin of 29.4% (24.0%).
• Adjusted operating profit totaled tSEK 82,718 (61,437) and adjusted operating margin was 31.6% (26.0%). In the first quarter of 2024, adjustments have been made for costs of tSEK 5,756 related to the reorganization and consolidation of operations to the head office in Gothenburg.
• ARPU for the period totaled SEK 278 (262). Currency-adjusted ARPU amounted to SEK 276.
• Earnings per share before and after dilution amounted to SEK 3.09 (2.28) for the period.

Important events during the reporting period

• Sleep Cycle launches the world's first non-contact analysis of sleep stages based on both breathing patterns and movement.

Important events after the period end

• The Board of Directors proposes a dividend of SEK 3.00 per share, equivalent to tSEK 60,833, based on the number of outstanding shares as of February 4, 2025. SEK 1.85 per share constitutes the regular dividend for 2024, while SEK 1.15 per share is an extraordinary dividend.
• The Board has updated the financial target for the EBIT margin, setting a new goal of achieving an annual EBIT margin of at least 25%. Previously, the target was approximately 25% per year.

Commenting on the quarter, CEO Erik Jivmark says:
"When we sum up the fourth quarter and look back at 2024, we see a year of steady growth for Sleep Cycle, quarter after quarter, in both subscribers and revenue. We have managed to reverse a downward trend and now, 918,000 paying customers start and end their day with Sleep Cycle, an increase of 25,000 new subscribers in one year. Revenue grew by 9.0 percent during the quarter, and with continued effective cost control, we end the year with a strong operating margin of 32.3 percent during the quarter and 29.4 percent for the full year."

"During the fourth quarter, we launched Sleep Stages, a feature that gives users deeper insights into their sleep. This is more than a new feature - it's a technological breakthrough. Using AI and machine learning algorithms trained on a vast amount of polysomnographic data, we are the first on the market to offer contactless sound analysis of both breathing patterns and movements - an innovation that enables entirely new use cases."

The full year-end report is available at https://investors.sleepcycle.com

Sleep Cycle's CEO, Erik Jivmark, and CFO & Head of Investor Relations, Elisabeth Hedman, will present today, Tuesday, February 4, at 9:30 CET. The presentation can be followed at https://sleep-cycle.events.inderes.com/q4-report-2024

Written questions can be submitted during the webcast.

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 4 February 2025 at 7:30 CET.

For more information please contact:

Elisabeth Hedman
CFO & Head of IR | [e-mail]
[phone]

Erik Jivmark
CEO | [e-mail]

Jonna Grenfeldt
PR and Communication | [e-mail]
[phone]

About Sleep Cycle
With millions of daily active users and over three 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.