Press releases

Interim report October - December 2018

2019-02-14T07:30:00Z

Fourth quarter 

-       Net sales amounted to MSEK 4.8 (7.8)

-       EBITDA amounted to MSEK -11.2 (-2.6)

-       EBIT amounted to MSEK -15.4 (-4.7)

-       EBT amounted to MSEK -17.9 (-9.4)

-       Earnings per share before dilutions amounted to SEK -0.40 (-0.31)

-       Launched Online Sales

-       Launched SpectrumOne and signed first customer

-       2019 revenue prognosis MSEK 60

Full year (1)

-       Net sales amounted to MSEK 21.6 (78.3)

-       EBITDA amounted to MSEK -27.4 (15.4)

-       EBIT amounted to MSEK -40.4 (0.4)

-       EBT amounted to MSEK -46.8 (-16.1)

-       Earnings per share before dilutions amounted to SEK -1.0 (-0.55)

Significant events after the reporting period 

-       MSEK 17.2 convertible bond issue

1) the comparable 2017-numbers include the divested subsidiaries Vianett and Sendega

CEO statement

Full speed ahead with SpectrumOne 

We have now successfully launched our new platform SpectrumOne and are happy to see the positive feedback from both customers and partners. Two customers have already signed, and we have a strong pipeline of new customers. We are confident that the heavy investments through 2018 have been correct and we have made a strategic move into an open spot in the martech market. We frequently see peer companies with valuations that states the opportunity in the market. TargetEveryone is now perfectly positioned to join this opportunity space and I look forward to go full speed ahead in 2019.

The last part of 2018 has also shown us that our strategic priorities have been correct, as the revenue from our first-generation platform has been slowing down despite structured effort towards customers and partners. Consequently, we have reorganized our resources towards SpectrumOne and Online Sales and scaled down costs related to legacy. The cost cutting effects will take full effect towards the end of Q1 19, but at the same time it is important for me to emphasis that only a sharp increase in sales and revenues as indicated in our 19´prognosis will bring this company into profitability. This has been a demanding process and I honor the team at TargetEveryone for a great effort over the last months since I joined in October.

SpectrumOne 

We are both proud and happy to see the feedback from customers and partners from SpectrumOne. As of today, we have already signed two new customers – Agria dyreforsikring and Createurene. The reception from the market has exceeded our expectations. We see that direct customers easily understand the tool that addresses three pain points that no other solutions can address with the same quality:

1) Lack of one common truth:

With SpectrumOne, our clients can collect market data, customer data and customer dialogue in one solution rather than employing multiple separate solutions in each vertical.

2) Big data is not accessible across organizations:

Very few systems make the users able to easily process the massive amount of data that is available. Marketeers lack a visual tool for understanding their customers.

3) Communication channels are not aligned:

Owned marketing channels are managed as silos within organizations. This leads to a suboptimal communication in channels that customers might not prefer and respond to.

SpectrumOne solves all these pain points. We serve a solution in a fast-growing market where “tool fatigue” is becoming a problem for marketeers with too many systems to manage.

We have also experienced that the price points are accepted in the market, thus SpectrumOne makes us able to charge up to 10.0x higher license than the previous platform.

The strategy and the execution

The revenue development in the second half year has been slowing down, despite a substantial effort to regain momentum. This has proven that our legacy business model has put us in a position where we were “stuck in the middle”. The enterprise customers have not been sufficiently interested in the solution, and we have not had a sufficiently standardized product to sell with limited efforts in a larger scale.

This makes us confident that the chosen strategy to differentiate in two clear market offerings has been correct – SpectrumOne to premium enterprise clients and our legacy TargetEveryone solution in online subscription offering towards Global SMEs.

To address this strategic situation, we made adjustments during Q4. A new strategy was laid and we created new identity and websites for both our legacy and new product. We also made several changes to our organization. The sales resources have redirected their full attention towards SpectrumOne from the legacy platform. We have also reduced staff and reorganized our partnership in Portugal to make the organization more lean towards either SpectrumOne or Online Sales. These were key actions to launch and sign the first customers on SpectrumOne as fast as we did during the fourth quarter. This has been a challenging process and I would like to thank the great team in TargetEveryone for pulling in the same direction with a constructive and trustworthy attitude.

Our ambitions 

In total, 2018 became a year with a giant transformation for TargetEveryone. By developing SpectrumOne, we have invested heavily with high costs and capitalizations compare to our revenue. The main job is now done and we look forward to harvest.

The martech market serves us with a fantastic opportunity space, where we are perfectly positioned with a solution that addresses the megatrends driving the growth. The expectations to the market are visible through highly comparable companies with valuations at five times revenue and higher.

Based on the great market and the feedback on SpectrumOne, we presented our 2019 revenue prognosis of MSEK 60. This revenue contains both SpectrumOne, Online Sales and a continuation of existing legacy revenue. The sales will be handled with our own organization and through our partners, and we experience a strong pipeline. Telenor is getting up to speed and the collaboration towards larger clients has so far been promising. We will also sign more media and advertising agencies as partners that will both be paying customers and resellers.

Online Sales is already targeting a global market, while SpectrumOne will be concentrated towards the Norwegian and Swedish market in H1 2019. We want to keep close to the customers in the first phase after launching SpectrumOne, to be able to respond quickly to the request for improvements. In the following period our ambitions are to expand to Europe and USA. We have partners ready in both Holland, Portugal and USA, which gives us a quick setup in these countries. I genuinely look forward to 2019 and to go full speed ahead.

STOCKHOLM, FEB 2019
TORKEL JOHANNESSEN
CEO

A presentation of the fourth quarter will be available on TargetEveryone´s Investor page at 9.00 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 February 14, 2019 at 08.30 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 SasS 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