Upsales (UPSALE) Q3 2024 earnings summary

Executive summary

• ARR reached SEK 138.4 million in Q3 2024, up SEK 0.8 million sequentially but down year-over-year, with a focus on reigniting growth after a flat or negative period in 2023.

• Emphasis on customer retention, operational KPIs, and expanding sales capacity and partnerships to drive new business.

• Continued investment in product innovation, especially AI and enhanced support modules, to increase customer value and deal size.

• The company remains profitable, net cash positive, and debt-free.

• No significant events occurred during or after the reporting period.

Financial highlights

• Q3 2024 ARR was SEK 138.4 million, up SEK 0.8 million sequentially but down from SEK 141.2 million in Q3 2023.

• Net sales for Q3 were SEK 35.7 million, down 0.9% year-over-year, with subscription revenue accounting for up to 97.7% of total revenue.

• EBITDA for Q3 was SEK 11.0 million (margin 30.8%), EBIT SEK 8.8 million, and net income SEK 7.0 million.

• Operating cash flow for Q3 was negative SEK 1.9 million; net cash position at quarter-end was SEK 29.9 million, with no debt.

• Dividend of SEK 25.3 million paid in Jan–Sep 2024.

Outlook and guidance

• Management expects ARR growth to continue improving, driven by internal changes, sales team expansion, and ongoing focus on customer satisfaction and retention.

• New AI-driven features and expanded support modules are anticipated to increase deal size and market reach.

• No specific Q4 guidance provided; strategy remains to build sales capacity and enhance customer care.