Sweden's Upsales Technology prelim Q2 sales rise

Overview

• Sweden B2B software firm's preliminary Q2 net sales rose 10.7% yr/yr

• Pro forma EBITDA margin seen at 36-38%, above previous guidance

• Annual recurring revenue increased quarter-on-quarter

Result Drivers

• MARGIN IMPROVEMENT - Pro forma EBITDA margin exceeded previous guidance, attributed to lower costs excluding Aira and spin-off expenses

• ARR GROWTH - Annual recurring revenue increased quarter-on-quarter after being flat in Q1

• LOWER CHURN - Churn is lower going into Q3, suggesting improved customer retention

Company press release:

Key Details

Analyst Coverage

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago

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