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Introduction & Market Context
LeadDesk Oyj (HEL:LEADD), a Nordic provider of contact center software as a service (CCaaS), presented its H1 2025 earnings results on August 14, 2025, highlighting strong revenue growth and continued profitability. The company’s stock has responded positively, trading at €7.22 as of August 15, up 1.4% from its previous close of €7.12.
The company operates in a €1 billion total addressable market across Continental Europe and the Nordics, with a strategic focus on both SME companies (40-45% of the market) and enterprise clients (55-60%). LeadDesk noted that 43% of potential customers still operate on-premise solutions, with 76% of those planning to move to cloud-based platforms, representing a significant growth opportunity.
As shown in the following overview of LeadDesk’s business and market presence:
Quarterly Performance Highlights
LeadDesk reported impressive financial results for H1 2025, with revenue reaching €19,545 thousand, representing a 26.4% year-over-year growth. The company maintained a healthy EBITDA margin of 14.0%, which falls within its target range of 14-19%. On a last twelve months (LTM) basis, the EBITDA margin improved to 15.1%.
The company’s annual recurring revenue (ARR) contract base grew substantially to €34,225 thousand by the end of H1 2025, providing strong visibility for future revenue streams. While the Nordic home market delivered the strongest absolute growth, Continental Europe (particularly Spain) showed the highest relative organic growth.
The following chart illustrates LeadDesk’s revenue and ARR growth trajectory:
Profitability and cash flow generation also showed positive trends, with operational cash flow reaching €4,885 thousand for H1 2025 LTM, primarily driven by improved EBITDA performance:
LeadDesk’s long-term growth journey demonstrates consistent performance, with a 20% CAGR from 2014 to H1 2025. The company has tripled its revenue since its IPO in 2019, as shown in this historical performance chart:
Zisson Acquisition Impact
A significant driver of LeadDesk’s H1 2025 performance was the acquisition of Zisson, completed in February 2025. This strategic move has transformed LeadDesk’s market position, making Norway its largest market and significantly boosting Nordic revenue growth.
Zisson contributed €8.7 million in revenue (FY2024) and brought 33 employees to the organization. The company has a strong market position in Norway, particularly in healthcare and public sectors. According to the presentation, the integration is proceeding as planned, with the first cross-sell deal already completed and active sales through Swedish partners.
Management expects cost synergies to become gradually visible throughout the second half of 2025 as the company harmonizes its organizational structure. The acquisition aligns with LeadDesk’s strategy of combining organic growth with strategic M&A to reach its long-term revenue target of €100+ million.
AI Strategy and Innovation
LeadDesk emphasized the strategic importance of AI in transforming the contact center industry. The company reported that over a third of its core cloud users are already actively using AI features, indicating strong adoption of these new technologies.
The company is developing a broad AI product portfolio to provide comprehensive CCaaS solutions. A key initiative for 2025 is "AI Insight," which is progressing as planned for pilot release in the second half of the year. LeadDesk is also conducting voicebot pilot projects in the finance and taxi sectors.
While AI products still represent a small portion of revenue, the company views them as strategically important for future growth and competitive differentiation. LeadDesk is focusing on AI solutions that genuinely improve customer service quality and agent productivity.
Market Outlook and Guidance
LeadDesk provided a balanced view of market conditions, identifying both tailwinds and headwinds affecting its business. Positive factors include increased activity from larger clients, growing need for operational efficiency, and accelerating AI adoption in contact centers. Challenges include economic uncertainty slowing down investments, customers seeking to curb costs, and the impact of increasing regulation on customer communication.
The company’s CCaaS market breakdown shows the segmentation between outbound call centers, traditional call centers, and more comprehensive contact centers:
Despite these mixed market conditions, LeadDesk maintained its guidance for 2025, projecting 23-33% annual revenue growth on a comparable currency basis and a 14-19% EBITDA margin. This confidence suggests management believes the company is well-positioned to navigate current market challenges.
Long-term Growth Strategy
LeadDesk outlined a clear strategic roadmap with short-term, mid-term, and long-term objectives. In the short term, the company is focused on strengthening profitability and creating a solid financial foundation for future investments. The mid-term strategy emphasizes accelerating organic growth, pursuing inorganic growth through M&A, and capitalizing on AI opportunities.
The company’s long-term targets include becoming the leading European alternative for customer service and sales (CCaaS), facilitating 1 billion customer interactions annually, generating over €100 million in revenue, and achieving a 20% EBITDA margin.
LeadDesk’s path to reaching €100+ million in revenue involves growth across multiple segments:
The company’s execution strategy balances profitability with growth initiatives:
In summary, LeadDesk delivered strong H1 2025 results with 26.4% revenue growth and 14.0% EBITDA margin, despite seasonal factors and some one-off integration costs. The successful integration of Zisson has opened significant new opportunities, particularly in the Nordic region, while the company continues its strategic transition toward larger, more complex clients. With its focus on AI innovation and balanced approach to growth, LeadDesk appears well-positioned to progress toward its long-term financial targets.
Full presentation:
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