Oneflow (ONEF) Q4 2023 earnings summary

Executive summary

• FY23 net sales rose 44% to MSEK 99.7 and ARR grew 42.7% to MSEK 129.3; net loss widened to MSEK 95.5 from MSEK 67.3.

• Paying users reached 41.2k, up 41% YoY, with users in 40 countries; sales outside Sweden rose to 30% of FY23 net sales.

Financial highlights

• Q4 net sales increased 39.5% to MSEK 28.4; FY23 net sales increased 44% to MSEK 99.7.

• Software-related recurring revenue was 96% of net sales in Q4 and FY23; FY ARR/net sales was 130%.

• FY23 net income was MSEK -95.5 vs. -67.3; basic and diluted EPS were SEK -3.80 vs. -2.89.

Outlook and guidance

• Management expects EBIT to improve quarter by quarter from Q1 2024, with the cost base more or less fixed through 2024 and profitability targeted using current cash reserves.

• Financial targets remain ARR of MSEK 500 and an EBIT margin of 20% by FY2027.

• Management expects retention to improve as economic sentiment recovers; ARR growth is expected to remain strong.