Increased sales and strong ARR growth: Interim report January - March 2024

The first quarter

• Net sales MSEK 169.2 (144.5), rendering a sales growth of 17% (22%)
• Recurring revenue MSEK 105.8 (82)
• The 12-month recalculated recurring revenue at the end of the first quarter 2024 was MSEK 432.1 (330.9), rendering an ARR growth of 31% (14%)
• EBITA MSEK 43 (36.9), rendering an EBITA margin of 25% (26%)
• Adjusted EBITA margin 26% (26%)
• Operating income, EBIT, MSEK 32.5 (28.6)
• Cashflow from operating activities amounted to 62.7 MSEK (39.4)
• Net Income amounted to 23.4 MSEK (20.7)
• Earnings per share amounted to 1.76 SEK (1.56), an increase by 13% and earnings per share diluted amounted to 1.75 SEK (1.55), an increase by 13%
• Acquired 85% of the shares in SportAdmin i Skandinavien AB during reporting period

CEO's comments: Increased sales and strong ARR growth

We started the year with 17% growth, 26% adjusted EBITA margin and strong ARR growth of 31%. The quarter shows good profitability and continued good growth in our software-related revenues. During the quarter, we worked on integrating SportAdmin, carried out a brand update, concluded a number of good business deals across the entire product portfolio, and worked hard to counter a tough market in Expert Services.

Strong ARR growth in a challenging market
The current market conditions resemble previous quarters in which we have seen longer sales processes and more decision-makers involved in our new customer business. Our order intake from new customers remains strong and we have a good sales pipeline where we expect to achieve similar results to those of previous quarters. During the quarter we also demonstrated a strong ARR growth of 31%, a combination of continued stable organic and acquired growth. 

Lower growth in Expert Services in the first quarter
Growth in Expert Services was lower in the quarter compared to the first quarter last year. It was affected by fewer working days due to Easter and a strong comparative quarter. Business conditions have also been tougher in Expert Services, especially within existing customers. We are capitalising on the lower workload to implement value-creating activities in the form of proactive customer support, cost-reducing projects and more active pre-sale support for the sales staff to drive more new customer sales. 

Great deals in all business areas
Lime CRM continued to generate good business in our industry verticals. During the quarter, we welcomed property company Gavlegårdarna, energy companies Vestall AS and Gudbrandsdal, wholesale companies Kinnan AB and Atleve Nordic APS, and member companies Hessen Trade & Invest GmbH and Säkerhets- och försvarsföretagen. It is also encouraging that we saw positive development and strengthened growth for Lime Conncet (Userlike) during the quarter, with Deutsche Telekom MMS GmbH and Malteser Hilfsdienst GmbH HRS becoming new customers.

For Lime Go, our focus on attracting larger companies paid off, which is reflected in the improved average business. This puts us in a good position to continue our growth journey. We also welcomed new customers such as Nordic Inspekt Group, Colly Filtreringsteknik and LB Lux of Sweden. 

SportAdmin has had a promising start to the year. We had the privilege of welcoming new customers, including Swedish bandy champions Villa Lidköping BK and AIK Innebandy – two well-known teams that we look forward to supporting in their daily operations and member engagement efforts. I am feeling very positive about the collaboration with SportAdmin, with its strong proactive culture, good customer focus and a product that continuously creates great value for our customers.

We are strengthening our brand
As we grow and expand our business, we are taking strategic steps to strengthen Lime as a brand. The integration of Userlike and SportAdmin has paved the way for a comprehensive brand refresh in which we are introducing Lime Connect (Userlike) and Lime Sportadmin as part of our product portfolio, which already includes Lime CRM and Lime Go. By consolidating our products under a single brand, instead of marketing them separately, we improve our brand awareness and exposure in both local and international markets. 

We are building Lime for the long term and constantly striving for improvement
We started the year with the usual onboarding of new employees in Lund where we welcomed 20 new Lime employees. The candidate market remains strong, and we are continuing to recruit in all our markets ahead of the big onboarding session in August. Staff turnover remains low, which is largely due to the investments we have made in our staff and leadership. We know that staff turnover is lower in tougher market climates and usually increases when the market improves, so it is important to continue to recruit and invest in staff in order to strengthen Lime in the long term.

The quarter provided a number of good achievements that we should be proud of, and as a growth company there is always room for improvement and progress. We continue to invest in recruitment and our internationalisation, and I am proud of the attitude we show and the proactivity that creates the conditions to perform over time. With a stronger brand behind us, we are ready for spring.

/Nils Olsson, Managing Director and CEO, Lime Technologies

Read the entire report in the attached PDF

Invitation to the presentation of Lime Technologies’ Q1 report

Today, April 25, at 09:30 CEST, analysts, investors, media, and other interested parties are invited to attend a webcast where Lime’s CEO, Nils Olsson, and CFO, Maria Wester, will comment on the published report and answer questions. The presentation will be held in English.

The presentation material is available on Lime’s website.

The link to the webcast can be found here.