Divio Technologies AB (publ) 2021 Year End Report – Increases net sales by 38%

Divio Technologies AB The (public) decision to allocate significant resources to sales and implement new sales strategies is yielding excellent results. A good start and continuous growth throughout the year. Net sales increased by 38% compared to the same period of 2020.

Summary of the year-end report

For the period July 1, 2021 For December 31, 2021

  • MRR in December increased by 8% to 144 (133) KUSD
  • Net sales increased by 38% to 7,607 (5,501) KSEK
  • Subscription revenue increased by 20% to 7,270 (6,047) KSEK
  • Loss reduced to -5,619 (-8,413) KSEK
  • Earnings per share before dilution was -0.066

For the period January 1, 2021 For December 31, 2021

  • MRR in December increased by 8% to 144 (133) KUSD
  • Net sales increased by 33% to 15,703 (11,791) KSEK
  • Subscription revenue increased by 33% to 14,729 (11,096) KSEK
  • Loss reduced to -10,878 (-18,610) KSEK
  • Earnings per share before dilution was -0.130

Significant events during the semester

  • Reinforcement of the sales team with the addition of a new senior sales representative in Sweden
  • Reinforcement of the board of directors: Anette Ringnér took over as chairman and Kimmo Björnsson returned to the board

Important events after the semester

  • Established a partnership with three Swedish IT consulting companies
  • Hiring of the first full-time sales representative in Switzerland
  • Strengthening of the sales team Sweden with an additional senior sales representative
Key indicators July-Dec 2021 July-Dec 2020 2021
MRR (Montreal Recurring ReveKUSD December 144 133 144
Subscription revenue, KSEK 7,270 6,047 14,729
Cash and cash equivalents at the end of the period, KSEK 9,287 1,095 9,287

CEO Commentary

I’m very proud of how we achieved everything we set out to do this fall.

Growing our customer base and revenue is everything to us right now and the only thing we are focused on. That’s true, whether it’s improving the platform or hiring new resources.

2021 has been a very important year for Divio, where we achieved many important goals. Implementing the new sales strategy with the help of a team of senior sales specialists and IT consulting industry partners was a very important step.

Currently we have three fully dedicated sales staff with the support of a technical sales specialist. We hired our first full-time sales representative in Switzerland, Divio’s first step in building a sales team focused on the Swiss banking sector.

The second part of the business strategy is to work with IT consulting firms of varying sizes. We started talking to potential consultancies in early 2021, and it took some time to find the right setup for a partnership where partners can take full advantage of the Divio platform and our deep expertise in cloud infrastructure. Our cloud infrastructure platform and expertise are tremendous assets when IT consulting firms are both seeking new clients and expanding their relationships with new clients.

Through partnerships, we have achieved two important benefits. We have expanded our sales organization with the help of partners who (1) already have access to large customers and (2) have a strong need to simplify their cloud infrastructure. These IT consulting companies, in turn, can improve their service because using our product saves them hours of work.

The second advantage is that instead of positioning Divio as a competitor to IT consulting firms, we have aligned ourselves with them. In order to improve partnerships with consulting firms and achieve better results, we have relaunched the partnership format. Our new sales team will be the critical factor in our success.

To increase results, we also need a clear message and offer using an effective marketing platform. In the first half of 2021, we launched a partnership with a digital agency to put Divio on the map and improve the inbound sales channel. The impact has been significant. To continue to improve, we hired a digital marketing specialist in December. We now have regular production of content, articles, webinars, blog posts, etc. which, combined, have essentially increased the interest and recognition of Divio. The number of registrations for demonstrations, requests for additional information and appointments with potential customers has increased considerably.

On the product side, the most important work we have done in 2021 is preparing for ISO certification. The heart of Divio is our industry-leading platform, and we’ve worked hard to improve it and secure our edge over the competition. As we target banks and insurance companies in line with our strategy, it is of the utmost importance that our platform meets the highest possible compliance and security standards.

Being certified is a requirement for many companies to start the procurement process. By becoming certified, an external party verifies that we meet all requirements. We have invested a lot of effort in the compliance process, not only to meet the requirements, but to ensure a smooth process both for the audit itself and especially when presenting and accepting new clients.

We have developed a GRC (Governance, Risk and Compliance) tool that structures our policies and efficiently generates reports tailored to the needs of potential clients. We now have a solid basis for further certification. Certification will open up more dialogue and speed up the sales and procurement process.

In order to further improve market reporting, we have decided to start with quarterly reporting from the third quarter of 2022.

We are now seeing the effects of an increased focus on sales with an increased workforce combined with a digital marketing platform: more valid calls, more prospect inquiries and curiosity, but most importantly more customers. I work with an incredible team that continues to grow and achieve incredible accomplishments.

Jon Levin

CEO

This disclosure contains information that Divio is required to make public in accordance with the EU Market Abuse Regulation (EU No. 596/2014). The information was submitted for publication, through the contact person, on 4 March 202208:30

press inquiries
For more information on Divio Technologiesplease visit www.divio.com or contact the CEO Jon Levin: jon.levin@divio.com
The company’s certified advisor is FNCA Sweden AB: +46(0)8-528 00 399, info@fnca.se

On Divio Technologies
Divio Technologies AB (Publ) is the Cloud management software development group behind the Divio platform, which simplifies cloud hosting, deployment and development via a PaaS solution. The platform enables companies to reduce costs, time to market and employee burden, as well as reduce reliance on cloud providers.

https://news.cision.com/divio/r/divio-technologies-ab–publ–year-end-report-2021—grows-net-sales-by-38-,c3518775

https://mb.cision.com/Main/16840/3518775/1544272.pdf

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Ann J. Cox