Upsales (UPSALE) Q1 2025 earnings summary

Executive summary

• ARR reached SEK 144.7 million at quarter-end, up 6.5% year-over-year, with a quarterly increase of SEK 2.8 million.

• Net sales for Q1 were SEK 36.1 million, down 3.2% from the prior year due to high one-off revenues in the previous period.

• Achieved four consecutive quarters of accelerating ARR growth, driven by new and existing clients investing in AI-powered sales and marketing tools.

• Strategic pivot from CRM to an AI-driven SaaS platform, launching proprietary AI agents for sales, marketing, finance, and service automation.

• Maintains a profitable, cash-positive, and debt-free position, with strong management ownership.

Financial highlights

• EBITDA was SEK 6.3 million (17.5% margin), EBIT was SEK 3.9 million (10.8% margin), and net income was SEK 3.1 million.

• Operating cash flow was SEK 5.3 million, with net cash at SEK 47 million at quarter-end.

• Subscription revenue comprised 95.6% of net sales, up from 91.6% in Q1 2024.

• Board proposed a dividend of SEK 1.5 per share for the upcoming AGM.

• EPS was SEK 0.19.

Outlook and guidance

• Expects continued acceleration in ARR growth, supported by strong demand for AI features from both new and existing clients.

• Management anticipates margin improvement as growth and operational leverage increase, with ongoing investment in AI product development.

• Company remains financially strong, debt-free, and positioned to capitalize on AI-driven opportunities despite market uncertainty.