Press releases

Interim report January - March 2019

2019-05-14T06:30:00Z

First quarter

  • Net sales amounted to MSEK 3.4 (7.5)
  • EBITDA before extraordinary costs amounted to MSEK -7.8 (-4.0)
  • EBT amounted to MSEK -14.6 (-10.4)
  • Earnings per share before dilutions amounted to SEK -0.25 (-0.32)
  • Signed totally seven new customers
  • Accumulated cost reductions to a total of approximately 30 %

Significant events after the reporting period

  • Announcement of MSEK 43.4 right issue

CEO statement

Fix before grow – important milestones reached

We have put a challenging time behind us. In late 2018, we saw that the legacy business was not sustainable and we carried significant development costs and non-value generating costs. As first quarter proceeded, we also experienced that finalization of SpectrumOne demanded more of us than expected. But now we have reached important milestones with a streamlined legacy platform and a shippable SpectrumOne platform. We are excited to see a growing pipeline and new signings that proves our concept. Our new clients are now using SpectrumOne and we receive great feedback. As a consequence of our clarified strategy and removal of non-core activities, we now also have been able to cut fixed costs by approximately 30 %, as well as free our attention towards our clients.

Customers and general pipeline

Even though the sales have been delayed we were proud to have signed 7 customers by Q1. For the next quarters we expect customer acquisition to increase steadily as our product reaches increased acceptance in the market. As anticipated, our software can be applied to a number of different industries with customers coming from Auto, Insurance, Banking, Advertisement Agencies, B2B and B2C. This spread proves that the market sees the value of our marketing platform, and only in the Nordics we are presented with a potential of + 1.000 customers.

We currently have a strong pipeline built up after only four months of concentrated work on our new SaaS solution. Several offers are sent, many successful meetings have been held and almost 200 active leads are started. The customers with monthly licenses below the expected TSEK 50 average have shorter lead times than the customers with higher licenses. Thus, the medium customers are dominating the customers closest to signing, but we expect this to even out through the second half of the year.

It is also satisfying to see that we have managed to sign three advertising agencies with Foll, Schjærven and Createurene, out of two reasons: Firstly, these are leading advertising agencies in Norway and Sweden, in the front of the development of the marketing industry, who knows what´s generating value to their customers. Secondly, their portfolio of strong brands will give a quick entrance to customers that are very suitable to SpectrumOne.

Cost cuts

As a result of the clear strategic focus, we have now been able to reduce costs substantially across the whole operation. TargetEveryone had a lot of different product and sales initiatives that demanded too much resources to handle, without generating sufficient revenue or profitability. Contracts with non-value adding partners are now terminated and the legal group structure is reduced. By directing our efforts towards SpectrumOne, we have discontinued the direct sales and new product development of our legacy platform. This led to staff reduction and the termination of our responsibilities towards our Indian Subsidiary. Coming out of Q1, we have now reduced our staff to 12 dedicated employees and our ordinary fixed cost base by 30 %, without affecting our ability to handle our clients or continue development. We rather experience a more focused and effective company after the changes of which the full effect will be from July 2019.

SpectrumOne delay

Development of deep technology software requires highly skilled people and significant time. Compared to other companies we are proud of what we have created for our customers in such a short time. In 15 months, we have developed SpectrumOne with a total cost of approximately MSEK 15. We launched our first version of SpectrumOne in January, but experienced that there still were some adjustments that had to be done before it was fully shippable. Parallelly, we also experienced that the sales process of our SaaS platform required longer lead time than expected. SaaS sales cycles are longer than typical product sales of our legacy platform, and we now anticipate typical sales cycle to be 2-6 months.

Capital increase

Even though we always want to please our shareholders we believe the upcoming right issues will be a good solution for everyone in the long run. It is both costly and resource demanding to not have a solid financing. With a successful right issue, we now will receive a funding that both brings us to cash positivity and also gives us room to expand further. Both our board members and our management are heavily invested in our company because we believe so strongly in the product and the market, and we will also use our right to invest further in the right issue.

TargetEveryone´s future

In essence, TargetEveryone now is a brand-new company ready for the future with only two value pockets; SpectrumOne and online subscription sales of our legacy platform. We daily see examples that the Martech market is an attractive spot for investors with high growth rates, a lot of opportunities and consequently high valuations. Analysts such as Gartner predicts that the market for marketing software will grow tremendously over the next years, with expected investments from close to all medium-large companies, regardless of industry. We in TargetEveryone have now been through some challenging months, but are more motivated than ever to go ahead with our state of art Martech platform, generate value for both our clients and shareholders, and then look beyond our Nordic home market for future growth.

Stockholm, May 2019

Torkel Johannessen

CEO

A presentation of the first quarter will be available on TargetEveryone´s Investor page at 8.00 a.m. CET: https://www.targeteveryone.com/investors/presentations.php?lang=en&type=present


For further information contact:
 

Vegard Brattum 
CFO
+47 977 00 338 
vegard@targeteveryone.com

Certified Adviser: 
Mangold Fondkommission AB (556585-1267) 
Box 55 691 102 15 Stockholm 
Telefon: +46 8 503 015 50 
ca@mangold.se 
www.mangold.se

TargetEveryone AB (publ) is obligated to publish this information under the EU Market Abuse Regulation. The information was provided by the above contact person's auspices, for publication on May 14, 2019 at 07.30 a.m. CET.


About TargetEveryone

TargetEveryone is a global MARTECH company, enabling our clients to streamline their 1-1 digital marketing, content and experiences within one SaaS online platform. The company´s strategy is to approach both the enterprise segment and the SME-segment with two different platforms that are based on the same technology, but with different modules and interfaces. Our unique solution makes marketeers able to easily target exactly the customers they want, and communicate with them in the channels they prefer, to maximize ROI. Our clients can easily segment their customers based on CRM data, market data and transactional data. Further, they can use a campaign editor to quickly build campaigns, and distribute these through our multichannel distribution system either by Email, SMS or SMS landing pages. The enterprise customers are served with our new platform SpectrumOne, combining market analysis, customer segmentation and communication tools, while the SME-customers are provided an online subscription solution through Targeteveryone.com. Both solutions are based on big data to analyze and refine the customers behavior and demands. TargetEveryone´s headquarter is in Oslo, with branch offices in Sweden, Holland, India and USA. TargetEveryone is listed on Nasdaq First North in Stockholm and Merkur Market in Oslo.

www.targeteveryone.com