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2021-11-02

Interim report for January-September 2021

Continued high growth and launch of new product.

1 July – 30 September 2021

  • Annual recurring revenue (ARR) amounted to 81.0 (46.7) MSEK, an increase of 73 percent compared to the third quarter of 2020, of which all relates to organic growth.
  • Net sales amounted to SEK 17,520 (9,523) thousand, an increase of 84 percent compared to the third quarter of 2020, of which all relates to organic growth.
  • EBITA amounted to SEK -17,915 (-3,378) thousand. Nonrecurring items affected EBITA with SEK 1.9 million.
  • Profit before tax for the period amounted to SEK -18,004 (-3,416) thousand.
  • Profit after tax for the period amounted to SEK -18,004 (-3,416) thousand.
  • Earnings per share amounted to SEK -1.48* (-87.81), before and after dilution.
  • Cash flow from operating activities amounted to SEK -11,759 (1,731) thousand.
  • Net cash (-) / debt (+) at the end of the period amounted to SEK -29,247 (-8,230) thousand.

1 January – 30 September 2021

  • Annual recurring revenue (ARR) amounted to 81.0 (46.7) MSEK, an increase of 73 percent compared to the third quarter of 2020, of which all relates to organic growth.
  • Net sales amounted to SEK 44,028 (15,445) thousand, an increase of 185 percent compared to the same period in 2020, of which all related to organic growth.
  • EBITA amounted to SEK -40,411 (-17,984) thousand. Nonrecurring items affected EBITA with SEK 1.9 million.
  • Profit before tax for the period amounted to SEK -40,642 (-18,148) thousand.
  • Profit after tax for the period amounted to SEK -40,642 (-18,148) thousand.
  • Earnings per share amounted to SEK -3.34* (-465.99), before and after dilution.
  • Cash flow from operating activities amounted to SEK -33,555 (-5,981) thousand.
  • Net cash (-) / debt (+) at the end of the period amounted to SEK -29,247 (-8,230) thousand.

*Earnings per share have been calculated for 2021 with the share split (250:1) registered on 25 August 2021

Significant events during the third quarter 2021

  • In July, Albert Code was launched on the Swedish market with the goal of teaching children to program.
  • In July 2021, Albert Standard was launched as a new subscription plan. This enables a user to use all of Albert’s products for a monthly payment of SEK 139.
  • In August, the shares regulated in connection with the warrants during June 2021 were registered, which resulted in 406 new shares and an increase in the share capital by SEK 2 thousand.
  • During August, a capitalization issue was carried out without issuing new shares, which resulted in the share capital increasing by SEK 365 thousand. Albert also increased the company's shares by dividing each share into a ratio of 250: 1, whereby the number of shares increased from 48,729 to 12,182,250.
  • In September, the intention to list Albert on the Nasdaq First North Growth Market was announced. The offer was heavily oversubscribed, and the company added more than 6,500 new shareholders. The first trading day took place on 1 October.

Founders Arta Mandegari and Salman Eskandari comment:

“This is Albert's first interim report as a listed company, and it therefore feels extra fun to be able to present a quarter with continued growth and several strategic advances.

Net sales amounted to SEK 17.5 million, corresponding to an increase of 84 percent compared with the third quarter last year. At the same time, annual recurring income (ARR) amounted to SEK 81.0 million, corresponding to an increase of 73 percent. It should be noted that the comparative figures are tougher than earlier this year. During the second quarter of 2020, we launched a campaign with a longer trial period where all new users became paying subscribers during the third quarter. Against this background, we are particularly pleased with the growth in the period and pace with our financial targets according to plan.

In addition to more subscribers, an increase in the average revenue per paying user (ARPPU) is also behind the growth. The development is driven by our newer subscription types Albert Standard and Albert Plus, which give the user access to all products. It is clear that our customers increasingly prefer these subscriptions and that the perceived value will be higher than when they only pay for one product.

We currently prioritize growth over profitability, which means increased marketing costs in all markets and consequently negative EBITA. In the third quarter of last year, we converted to profitability during the final phase of the capital raising, which is reflected in the comparison between the quarters. But given the underlying profitability of each new customer, we then chose to focus again on growth during the fourth quarter of 2020. We think this flexibility in the business model is a strength and when we judge that we are large enough, we will be able to achieve margins in accordance with our financial targets.

In July, we launched the new Albert Code app, which teaches basic principles in programming – an area that we believe will become increasingly important in all children's education in the future. Earlier this year, we also launched the reading and writing app Albert ABC and the geography app Albert Geo. The initial feedback on all newly launched products has been positive and we continue to develop content and functionality. A strengthened offer and a broadening of our product portfolio is important to us and the promise we give parents and children to offer fun and individualized learning according to the current curriculum.

After the end of the quarter, after a successful evaluation period, we launched Albert widely in the UK. It is an exciting market where we see great opportunities to grow over time. In general, it can be stated that there is no dominant European player in our niche and that competition in each market is fragmented. This means good conditions for Albert's continued growth in Europe and we are constantly evaluating new potential markets.

Finally, we are proud of the interest that Albert met in connection with the listing on the Nasdaq First North Growth Market and it is with great enthusiasm that we have now begun the next phase in the company's development. With the help of the issue capital, we will invest in growth where both continued innovation and acquisitions are part of the strategy going forward - always with a clear focus on democratizing knowledge through technology. We would like to take this opportunity to thank all our colleagues for a fantastic job up to where we are now, and welcome all new shareholders on the journey ahead!”

Link to the report
The report is attached to this press release and is available at: https://investors.hejalbert.se/reports

Presentation of the report
Today at 09.00 CET, founders Arta Mandegari and Salman Eskandari as well as CFO Martin Dahlgren will hold a presentation of the report via webcast and conference call. The presentation will be concluded with a Q&A session.

Link to webcast: https://tv.streamfabriken.com/eeducation-albert-q3-2021

Dial-ins for conference call: SE +46 8 5055 8358 / UK +44 3333 00 9035

For additional information, please contact:
Martin Dahlgren, Head of Finance
Mobile: +46 (0)73 909 26 31
Email: martin@hejalbert.se

About Us


Albert is the children's digital teacher, who since the start in 2016 has helped over 275,000 families with homework via mobile devices. Albert's apps are aimed at younger (3-9 years) and older children (10-16 years) and include subjects such as Mathematics, Geography, Code and Reading & Writing. Albert was founded in 2016 by two friends in Gothenburg with a clear goal - to democratize knowledge through technology - and that is what drives us even today. Albert is listed on the Nasdaq First North Growth Market with the short name (ticker) ALBERT. The company's certified adviser is FNCA Sweden AB, info@fnca.se, +46 (0) 8528 00 399.
 
Read more at investors.hejalbert.se

This information is information that eEducation Albert is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2021-11-02 08:00 CET.

Attachments


eEducation Albert AB Q3 2021 (English)

Författare MFN