New Risk • Jun 11
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -kr27m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr27m free cash flow). Earnings have declined by 5.8% per year over the past 5 years. Minor Risk Revenue is less than US$5m (kr35m revenue, or US$3.7m). Board Change • May 21
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 5 non-independent directors. Independent Chairman of the Board Erik Hammarberg was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 27
Third quarter 2024 earnings released: kr0.089 loss per share (vs kr0.11 loss in 3Q 2023) Third quarter 2024 results: kr0.089 loss per share (improved from kr0.11 loss in 3Q 2023). Revenue: kr5.59m (down 6.7% from 3Q 2023). Net loss: kr5.90m (loss narrowed 7.0% from 3Q 2023). Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 04
Second quarter 2024 earnings released: kr0.11 loss per share (vs kr0.10 loss in 2Q 2023) Second quarter 2024 results: kr0.11 loss per share (further deteriorated from kr0.10 loss in 2Q 2023). Revenue: kr6.52m (down 3.7% from 2Q 2023). Net loss: kr7.20m (loss widened 21% from 2Q 2023). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. New Risk • May 25
New major risk - Revenue and earnings growth Earnings have declined by 5.6% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr27m free cash flow). Earnings have declined by 5.6% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (12% average weekly change). Shareholders have been diluted in the past year (16% increase in shares outstanding). Revenue is less than US$5m (kr31m revenue, or US$2.9m). Market cap is less than US$100m (kr157.2m market cap, or US$14.7m). New Risk • Apr 29
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 16% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Less than 1 year of cash runway based on free cash flow trend (-kr26m free cash flow). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (kr16m net loss in 2 years). Shareholders have been diluted in the past year (16% increase in shares outstanding). Revenue is less than US$5m (kr30m revenue, or US$2.7m). Market cap is less than US$100m (kr191.8m market cap, or US$17.5m). Recent Insider Transactions • Mar 21
Director recently bought kr4.6m worth of stock On the 15th of March, Mikael Lindblom bought around 2m shares on-market at roughly kr3.02 per share. This transaction amounted to 24% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Reported Earnings • Feb 11
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: kr0.43 loss per share. Revenue: kr29.6m (up 54% from FY 2022). Net loss: kr24.6m (loss widened 7.9% from FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.9%. Revenue is expected to decline by 17% p.a. on average during the next 2 years, while revenues in the Software industry in Sweden are expected to grow by 14%. New Risk • Oct 04
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Swedish stocks, typically moving 12% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (12% average weekly change). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (kr18m net loss in 2 years). Revenue is less than US$5m (kr23m revenue, or US$2.1m). Market cap is less than US$100m (kr173.6m market cap, or US$15.7m). Reported Earnings • Aug 28
Second quarter 2023 earnings released: kr0.10 loss per share (vs kr0.11 loss in 2Q 2022) Second quarter 2023 results: kr0.10 loss per share. Revenue: kr6.81m (up 39% from 2Q 2022). Net loss: kr5.96m (loss widened 1.7% from 2Q 2022). Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Software industry in Sweden. New Risk • Aug 27
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.8% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.8% per year for the foreseeable future. Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (kr18m net loss in 2 years). Share price has been volatile over the past 3 months (11% average weekly change). Revenue is less than US$5m (kr21m revenue, or US$1.9m). Market cap is less than US$100m (kr231.4m market cap, or US$20.9m). Reported Earnings • Feb 12
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: kr0.45 loss per share. Revenue: kr19.3m (up 16% from FY 2021). Net loss: kr22.7m (loss widened 11% from FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 7.3%. Revenue is forecast to stay flat during the next 2 years compared to a 18% growth forecast for the Software industry in Sweden. Board Change • Nov 16
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. 1 independent director (4 non-independent directors). Independent Chairman of the Board Johan Rutgersson is the most experienced director on the board, commencing their role in 2015. They were also the last independent director to join the board. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Reported Earnings • Nov 02
Third quarter 2022 earnings released: kr0.10 loss per share (vs kr0.11 loss in 3Q 2021) Third quarter 2022 results: kr0.10 loss per share. Revenue: kr4.88m (up 16% from 3Q 2021). Net loss: kr5.90m (loss widened 16% from 3Q 2021). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Software industry in Sweden. Reported Earnings • Jul 22
Second quarter 2022 earnings: Revenues miss analyst expectations Second quarter 2022 results: Revenue: kr4.91m (up 24% from 2Q 2021). Net loss: kr5.86m (loss widened 1.4% from 2Q 2021). Revenue missed analyst estimates by 11%. Over the next year, revenue is expected to shrink by 30% compared to a 40% growth forecast for the industry in Sweden. Board Change • Apr 27
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. 1 independent director (4 non-independent directors). Independent Chairman of the Board Johan Rutgersson is the most experienced director on the board, commencing their role in 2015. They were also the last independent director to join the board. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Reported Earnings • Feb 12
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: kr0.47 loss per share (up from kr0.63 loss in FY 2020). Revenue: kr16.9m (up 37% from FY 2020). Net loss: kr20.5m (loss narrowed 11% from FY 2020). Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the next year, revenue is expected to shrink by 37% compared to a 69% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Oct 26
Third quarter 2021 earnings released: kr0.11 loss per share (vs kr0.13 loss in 3Q 2020) The company reported a solid third quarter result with improved revenues and control over costs, although losses increased. Third quarter 2021 results: Revenue: kr4.20m (up 26% from 3Q 2020). Net loss: kr5.09m (loss widened 9.4% from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 13% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 25
Second quarter 2021 earnings released: kr0.13 loss per share (vs kr0.15 loss in 2Q 2020) The company reported a solid second quarter result with improved revenues and control over costs, although losses increased. Second quarter 2021 results: Revenue: kr3.95m (up 23% from 2Q 2020). Net loss: kr5.78m (loss widened 6.3% from 2Q 2020). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 26
First quarter 2021 earnings released: kr0.13 loss per share (vs kr0.16 loss in 1Q 2020) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2021 results: Revenue: kr4.13m (up 27% from 1Q 2020). Net loss: kr4.68m (loss narrowed 20% from 1Q 2020). Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 9% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 14
Full year 2020 earnings released: kr0.63 loss per share (vs kr0.62 loss in FY 2019) The company reported a soft full year result with increased losses and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: kr12.3m (up 3.8% from FY 2019). Net loss: kr23.1m (loss widened 14% from FY 2019). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Feb 14
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 11%. Earnings per share (EPS) exceeded analyst estimates by 1.7%. Over the next year, revenue is expected to shrink by 35% compared to a 54% growth forecast for the Software industry in Sweden. Is New 90 Day High Low • Feb 08
New 90-day low: kr9.50 The company is down 12% from its price of kr10.75 on 10 November 2020. The Swedish market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 41% over the same period. Reported Earnings • Oct 25
Third quarter earnings released Over the last 12 months the company has reported total losses of kr22.1m, with losses widening by 23% from the prior year. Total revenue was kr13.0m over the last 12 months, up 12% from the prior year. Analyst Estimate Surprise Post Earnings • Oct 25
Third-quarter earnings released: Earnings miss expectations Earnings per share (EPS) missed analyst estimates by 8.3% at -kr0.13. Revenue is expected to shrink by 47% over the next year, compared to a 33% growth forecast for the Software industry in Sweden. Is New 90 Day High Low • Sep 23
New 90-day high: kr14.50 The company is up 72% from its price of kr8.42 on 25 June 2020. The Swedish market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 11% over the same period.