Sweden's Upsales Technology Q2 EBITDA margin improves on Aira separation
Sweden's Upsales Technology Q2 EBITDA margin improves on Aira separation
Overview
Sweden B2B software firm's Q2 net sales rose 10.8% yr/yr
Q2 EBITDA margin increased to 26.2% from 22.8%
Company completed Aira separation, boosting profitability and focus on core business
Outlook
Company expects accelerating ARR growth in the second half due to lower churn
Upsales sees increased services revenue following AI Agent Workspace launch
Company expects ongoing profitability improvements after structural changes and Aira separation
Result Drivers
AIRA SEPARATION - Profitability improved as costs related to Aira were removed and focus shifted to core business
REORGANISATION BENEFIT - Margin gains reflect the full run-rate benefit of last year's reorganisation, per CEO
AI PRODUCT LAUNCH - Launch of AI Agent Workspace drove new customer wins and deeper adoption, supporting service and ARR growth
Company press release: ID:nMFNbwCnD7
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales |
| SEK 41.40 mln |
|
Q2 Net Income |
| SEK 5.40 mln |
|
Q2 Cash Flow From Operating Activities |
| SEK 8.90 mln |
|
Q2 EBIT |
| SEK 7.60 mln |
|
Q2 EBITDA |
| SEK 10.90 mln |
|
Q2 EBITDA Margin |
| 26.20% |
|
Analyst Coverage
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
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July 22 - Finland's TietoEVRY Q2 revenue falls on consulting demand weakens
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)