Press releases

Interim report October - December 2019

2020-02-18T15:21:01Z

Fourth quarter

  • Net sales amounted to MSEK 0,7 (4.8)
  • EBITDA amounted to MSEK -32.6* (-11.2)
  • EBIT amounted to MSEK -34.9* (-15.4)  
  • EBT amounted to MSEK – 36.9* (-17.9)
  • Loan agreement amounting to SEK 10 million with largest shareholder
  • Extraordrinary general meeting held on November 19
  • TargetEveryone divests non-core legacy business TEO 1.0

Full year

  • Net sales amounted to MSEK 9.4 (21.6) 
  • EBITDA amounted to MSEK -56.4 (-27.4)
  • EBIT amounted to MSEK -70.1 (-40.4) 
  • EBT amounted to MSEK -74.6 (-46.8) 
  • Earnings per share before dilutions amounted to SEK -0,37 (-0,44)

Significant events after the reporting period

  • TargetEveryone completes a directed issue of shares, receives a loan facility and proposes further long-term financing in connection with strategic acquisition of Cloud Explorers.

*) Including loss on sales of subsidiaries amounting to MSEK 28,2

 

CEO STATEMENT

Closing and a new beginning

During the last five months of 2019, I have had the opportunity to lead a long-tormented company with amazing people and tremendous potential but in lack of leadership, focus and vision. I set a plan with the board in order to make a complete turnaround of the company, streamline our organisation and have the right focus on the market. What we had planned to be executed on 12 months basis we have accomplished to do in half that time. It turned out our people where more engaged, our potential even larger and our value to our clients much higher than we had expected. The times of insecurity are over, and our future is now brighter than ever.

We have a built a remarkable pipeline, secured clients on a high level and started processes with partners and new clients we could only have dreamt of earlier. All this a necessity in order to become the best Martech company in Europe. Also furthermore and importantly, become cash-flow positive and generate profit for growth and development increasing our shareholders value.

Today we have a highly competitive and unique platform approaching the very demanding and growing business data market, we have a partner program in place with several key partners and a sales structure optimized to enable us to approach the right clients. A clear cultural transformation in TargetEveryone has enabled us to dare to reach for larger clients and thus boost our own self-esteem.  This is creating a positive circle, clients and partners are now reaching out to us to elaborate on how to cooperate together. This is truly taking us to a new position in the market

From unstable and unprofitable heading towards a success 
We basically started off at zero after divesting our legacy business in TEO 1.0 in October. A decision not taken easily but looking back to it, we know more than ever that we did everything right. The divestment made it possible for us to have one focus, to develop and adapt our business to what is becoming the future of Martech - a high margin product with great future potentials and incredible testimonials from partners and customers today and I am certain from our future clients.

Significantly improved overall results & margin

TargetEveryone is at this moment experiencing the most remarkable turn-around in its history. Since last Q4 we have managed to cut the majority of operational costs by more than 70%, taking into consideration the extraordinary costs we have incurred during the reductions in staffing and restructured of our workforce.

Our EBITDA is clearly improved by more than 40% since last Q4, taking in consideration the one-off cost for loss on sales of subsisidiary. This is the result of a strict focus on our costs and streamlining the organisation to do the right things at the right time and on-time. All unnecessary costs not contributing to our immediate growth are basically cut off.

Essentially, starting off at zero in Q4 we have invoiced only for the fully implemented customers about 700 KSEK. We no longer offer any free trials or discounted contracts. Our product offering is strong and we do not experience that any of our clients are unwilling to pay from the beginning. Therefore, although these figures might seem somewhat low, with a levels that does not make us profitable in the short term – they should be seen as the beginning of our fundamental pricing and incomes, with each client fully invoiced earlier in the implementation phase giving us more solidpredictablereliable incomes and growth. Additional to that, several customers were signed at the end of the quartile leading to their revenue not contributing in the Q4 but in Q1 to come.

Major revenue growth

We foresee a major client onboarding and revenue growth in the coming quarters. Derived from the clients recently signed or about to be signed, along with our strong pipeline via direct sales and our partners. This coupled with the acquisition of Cloud Explorers and the ability to greatly shorten the length of implementation period grants us an even faster tempo to our progress. In addition to this we are in the process of acquiring several more companies in order to broaden our offer and strengthen our position in the market. This growth is not only making our company’s future brighter, but the strength for growth and our opportunities is becoming even more visible for me, and hopefully also for every shareholder of this company. 

Growth and acquisition strategy finally starting off
This week we have completed the financial plan required for us to implement our strategy. The finalized plan grants us the opportunity to act goal-oriented with clear and important foresight into what will come. It also gives our shareholders relevant insights and a much  appreciated transparency of what lays ahead us.

The following three aspects are of major importance in the financial agreement we communicated yesterday

1.                   An opportunity to act on our highly ambitious acquisition strategy

  1. We start our acquisition tour with the acquisition of Cloud Explorers, a highly successful tech-company we have worked closely with the last two years
  2. With the presented financial plan we get the necessity strength to execute on further strategic acquisitions without any additional rights issues
  3. By strengthening our balance sheet, we also become more interesting for major actors to cooperate and engage with in many ways

2.                   Strong funding secured

  1. Having the continued support from existing major shareholder and new professional investors investing in us secures our ability to accomplish our strategy and commitment of growth

3.                   One company – tremendous resources, talent and opportunities

  1. Becoming one with our associated company we finally have the opportunity to work with their many existing clients and broaden the services provided
  2. SpectrumOne is profoundly strengthened with the offerings we can add to it from Cloud Explorers services, hence increasing revenue streams
  3. Synergies coming from the acquisition will directly affect our financials positively from day one – reduced developing costs and increased revenue
  4. By becoming one company we can also allocate all of our resources to further develop SpectrumOne into a service for the future were technologies such as machine learning and AI-modules can become an integrated part of the platform
     

Our ambitions

This is indeed a very important crossroad for our company. A couple of years ago The Economist published an article "The world’s most valuable resource is no longer oil, but data". The article emphasizes that today’s world has made data abundant, ubiquitous and far more valuable than any other resource on the planet.  It states that “…collecting more data, a firm has more scope to improve its products, which attracts more users, generating even more data, and so on.” Our contribution to this era of data is making it possible to act on the resource most companies collect. We provide our customers with a unique tool giving them easy yet unprecedented ability to work with and visualize their data. This enables our customers to get a precise view of their customer behaviors and drive smart decisions based on insights and powerful analyzes.

I have no doubt we are right on target and in precisely the right place to make all of the above reality. We have begun a journey on which we have now taken our first fundamental steps. I am looking forward to you joining us in the very exciting times ahead of us.

 

 

For further information contact: 
Hosni Teque-Omeirat 
CEO

+46 70 225 18 77 
hosni@spectrumone.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 18, 2020 at 4.20 p.m. CET.

About TargetEveryone

TargetEveryone is a MARTECH company, enabling our clients to streamline their 1-1 digital marketing, content and experiences within one SaaS online platform. 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. TargetEveryone´s headquarter is in Oslo, with branch offices in Sweden, Holland and USA. TargetEveryone is listed on Nasdaq First North Growth Market in Stockholm and Merkur Market in Oslo.

www.targeteveryone.com