Earnings call transcript: OneFlow Q2 2025 sees sales rise, stock dips

OneFlow AB reported a 28% increase in net sales for the second quarter of 2025, reaching SEK 42 million. Despite this growth, the company’s stock dropped by 2.7% to 25.2, reflecting investor concerns over ongoing losses and a sluggish market environment. According to InvestingPro analysis, the company maintains a ’FAIR’ overall financial health score, with a notably strong position in holding more cash than debt on its balance sheet. The company’s focus on profitability and restructuring efforts were key themes during the earnings call.

Key Takeaways

• Net sales increased by 28% year-over-year, reaching SEK 42 million.
• The stock price fell by 2.7%, aligning closer to its 52-week low.
• OneFlow is prioritizing profitability and operational efficiency.
• The company opened a new office in North America to expand its market presence.

Company Performance

OneFlow demonstrated strong sales growth with a 28% increase year-over-year, maintaining a robust revenue CAGR of 59% over the past five years. The company’s Annual Recurring Revenue (ARR) grew by 19%, signaling robust customer retention and expansion. Despite these gains, OneFlow continues to operate at a loss, with a negative EBITDA of SEK 8.4 million and EBIT of SEK 20.7 million for Q2 2025. InvestingPro data reveals that analysts currently maintain a Strong Buy consensus on the stock, with additional insights available through the comprehensive Pro Research Report.

Financial Highlights

• Revenue: SEK 42 million, up 28% year-over-year.
• Gross Margin: Stable at 93%.
• EBITDA: -SEK 8.4 million, a SEK 7.2 million improvement from last year.
• EBIT: -SEK 20.7 million, a SEK 4 million improvement.

Outlook & Guidance

OneFlow is focusing on profitability over growth, with plans to reduce losses in subsequent quarters. The company aims for a 30%+ ARR growth in the mid-to-long term and is exploring further expansion into the North American market.

Executive Commentary

CEO Anders Hamnes emphasized the importance of time efficiency, stating, "Time is the most precious thing we have in life. And if you can save time, that’s has a lot of value." He also reiterated the company’s focus on profitability, saying, "We focus on becoming profitable. And after that, we will work on getting the growth up again at 30% plus."

Risks and Challenges

• Market Sluggishness: The current market environment is described as sluggish, which could hinder sales growth.
• Profitability Challenges: Despite improvements, the company continues to operate at a loss.
• Reorganization Costs: One-time reorganization costs impacted Q2 financials.
• Competition: Strong integrations with platforms like HubSpot and Salesforce Dynamics are necessary to maintain competitive positioning.

Q&A

During the earnings call, analysts inquired about OneFlow’s new ARR calculation methodology and its workforce reduction strategy. The company also clarified its partnership structure in North America, aiming to leverage these partnerships for market expansion.

Full transcript - Oneflow AB (ONEF) Q2 2025:

Anders Hamnes, CEO, OneFlow: Okay. Good morning. Good morning. 10:00. Okay.

So welcome to this meeting where we will walk through the highlights of the second quarter twenty five for OneFlow. So my name is Anders Hamnes. I’m the CEO of the company. And next to

Natalie Selve, CFO, OneFlow: me we have Natalie Selve, CFO of OneFlow.

Anders Hamnes, CEO, OneFlow: Thank you. And also please use the Q and A function in Zoom and not the chat, and we’ll get back to your questions in the end of this deck. So first, some highlights for the quarter. ARR closed in at 171.2%. This is a growth of 19% year over year.

We ended July at 173.2%. Net new ARR was down 33% during the quarter and closed in at NOK 6,600,000.0. And the main reason for that is related to churn and expansion that you can see from the retention rates below. Net ended at 97% and gross retention at 87%. ARR per full time employee up 22%, 936,000.

And we had 15% more paying customers end of second quarter compared to last year. So getting the cloud close to four and a half thousand paying customers in OneFlow. So first, two slides to those of you that are new to OneFlow, just to give you some idea on what we are doing. OneFlow is a platform for handling contracts, all your contracts, sales, procurement, HR, legal, and this is an end to end solution for all the steps in the process. We work pre sign, sign and post sign.

You can build templates in one flow, you can collaborate in real time with your participants, making changes, audit trail, suggestions, and so on. So you don’t have to jump between word, Outlook and so on. Can do it all on one slate. Of course, signing is a part of the application as well, a small part. And post sign where you can manage your contract.

You can be notified on key events along the timeline. You can summarize, filter. We have, a set of really powerful AI features where you can analyze your contracts. You can get advice on improvements for your contracts, you can scan through all your contracts and find contracts that have some kind of deviation from whatever. So so a a lot of really powerful AI features both in the pre sign and in the post sign stage.

And, obviously, contracts is a part of every company’s workflows, so integrations are a very, very key area for us. We have more than 20 developers in Sri Lanka working full time only on building integrations and maintaining our APIs. So this is one of our cornerstones in the company. So we have tons of really good integrations to CRM, HTS, HR, and API middleware, a lot of different tools. Time is the most precious thing we have in life.

And if you can save time, that’s has a lot of value. And this is what OneFlow is about. Contract is the part of every department, every company across across the globe. That’s why companies exist to buy and to sell and to hire people and so on. It’s all about contracts.

So if you can save time, that has a huge impact for companies. That’s what we do, in presign and post sign. And if you go for one of the more simpler esign solutions out there, there are tons of those vendors. You’re only gonna save the purple bar on top of the sign stage. So you can see that it’s a very, very small part of the potential.

The magic happens in pre sign and post sign. E sign is a commodity. That’s not what we do. We have it, it’s a wheel on the car, but that’s not where we put the focus. Then to some product highlights for the quarter.

We added what we call signature fields on PDF. Those of you that know OneFlow know that we are not a big fan of PDF. But still, a lot of companies are trapped in all ways of working, so we have to support this. So we are definitely on top of, the line when it comes to PDF as well, even though that is not, the core in what we’re doing. New content tab.

This is a very powerful way for people to, work with templates to drag in, whatever data field section you need. So this is helping to increase the happiness and the and the ease of use in OneFlow. Before, we only had a marketplace for admins. Now we

Natalie Selve, CFO, OneFlow: have it for all users, so

Anders Hamnes, CEO, OneFlow: you can see all the powerful stuff you can activate to do even more contract magic in in OneFlow. We have a lot of e IDs. We have a lot of QES. Actually, had a discussion yesterday if we had the most in the market. I’m not sure, but definitely on the in the top league there.

And if companies should need something that we don’t have, it’s it takes a very short time for us to activate it. So we have a really, really powerful suite of of advanced and qualified signature capabilities. We support today 12 languages in the application. We have made several improvements to how the language behaves through the application. We have launched new integrations with the hard pace HR and SuiteTime, two big HR tools.

And we continue to make improvements to HubSpot and SuperOffice and Power Automate. Main, events during the quarter, after the quarter, during the summer, we have many developers working during the summer, as well. We continue to work on HubSpot. And those of you that have followed one for one for some time, have seen that HubSpot goes again and again and again and again. A lot of consulting firms working with helping companies to integrate HubSpot have told us that we have, by far, the best integration in the market.

We already knew that, but it’s always fun to hear it from external companies as well. We are definitely a big, big step ahead of competition when it comes to HubSpot. And even for Salesforce Dynamics, we are definitely in the top three league league globally when it comes to powerful integrations. This is a key area for us. New integration with Lime.

We have had a Lime integration for years, but we decided to just remake it totally. And also we launched with, an HR tool called Talent Recruiting. I think it’s, Benelux based in The Netherlands. It’s quite big there. Notes to documents.

Before, you only had the possibility to make comments between participants, but now you can even make notes, in in the documents as well. We have launched a lot of new and really powerful capabilities when it comes to AI review, more concepts. So you can do you can you can decide how you want us to scan through your contracts and and what kind of information data you want us to look for in a much, much more powerful way than than you could during the spring of this year. And since OneFlow is a contract life cycle management tool, we have made a lot of really powerful add ons to our folders and how you can archive and manage your contracts. This is just some of the big highlights.

We also launched or opened a new office in the North America. The office is up and running and we are starting selling in the September. First day one, only one guy, but we have a pipe of more people. So we expect this team to be somewhat bigger relatively soon. Location will be in Chicago.

And the person that is gonna be responsible for this company is now, is not just somebody. This is, the person that, built up, OneFlo North America for Pagero, another Swedish company that that that was bought and unlisted last year. So he’s been living in Sweden sorry, in The US for a long time. He’s actually from Gothenburg in Sweden, and but but he he has done this this journey before. And also, I could add that this is not something we do as an experiment.

We have actually been selling in The US for quite some time. Around 40% of all business we close in The UK has been from The US. And we also have partners in The US. So we have a lot of data, we have a lot of customers, so we know what we are going into. So this is gonna be we’re super excited.

It’s gonna be really, really fun to to start playing in that little bit crazy land, I would say. Yeah. I kind of like it and hate it.

Natalie Selve, CFO, OneFlow: Well,

Anders Hamnes, CEO, OneFlow: great Yeah. With very good potential. So let’s dive into some more numbers. Net new ARR closed in at NOK6.6 million Q2 for the first half of the year, NOK12.2 million, which is down 45%. We had some headwind from currency, NOK2.6 million to be accurate.

So if you adjust for that, we were down 36% year over year first half. Around 40% of the ARR is foreign currency. New ARR was actually very strong for the quarter. We had the best second quarter ever when it comes to new ARR. And we also had the second best quarter ever across all quarters when it comes to new ARR.

So what pulls the numbers down is churn and expansion, which has been the case for roughly a year now, would say. So the market is sluggish. It’s not the most fun market at the moment and it’s been like that for some time. Do we see some sign of improvements? I would love to say yes, but actually I would say no.

But not the other way either. It’s still quite tough out there. And we can also add that we have also signed contracts for 8,100,000.0 that will be recognized after the quarter. So what we report here is the live ARR. So still there are 8,100,000.0 in deals that will fall into the following quarters, not yet reported.

ARR 171,000,000, up 19%. If we adjust for the currency, the growth would have been 21% and not 19%. But still, the trend has been declining, which is something that, most software companies experience, at the moment. It is is a different climate. It is tough out there.

We have communicated two goals to the market, that is to have an ARR growth of more than 30% year over year and to become profitable with the current funds. We also said to the market sometime now that we are going to prioritize to become profitable. Obviously, we have to do that. So we will not be able to reach our growth market during that phase. So that is still the case.

We focus on becoming profitable. And after that, we will work on getting the growth up again at 30% plus, which is our mid to long term goal. How to get there? Obviously, there are different factors there. We need to see some kind of underlying market improvements.

At some point that’s going to happen. When? I don’t know, obviously. We do have a lot of stuff in the product that we are working on that we need. It’s gonna have an impact on our hit rate and our customer happiness.

So we have a really good picture of what we need to do in the product, obviously, to make customers more happy and to increase the hit rate. And it’s not like we’re going to continue to do what we have done in the past and expect to see a different result when it comes to market go and how software companies operate. That has changed a lot over the last few years. I would say if you go back five, ten years, how ways of working were quite quite the same year after year. But now for the past few years, things are changing really, really fast, And you have to adapt and change your whole go to market motion to adjust to this more challenging market.

But this is something that we obviously, not only we, I guess all comes off also of the companies are having kind of the same situation. We don’t call it a problem. It’s more like a challenge. We think that’s also what makes it really fun to work in software because it is it is hard. It is tricky.

It’s just this is like playing playing chess. There are a lot of combinations. But we have a really good idea on how to get through the storm, how to get ahead of the 30% mark again. So we are very excited to see how this is gonna play out. Net new ARR.

Sorry, that was the wrong button. And this is another key metric we love to follow, talk about. ARR per full time employee up 22% year over year, 936,000 SEK. Why is this so important? Obviously, because we are an ARR company.

Ninety cent 99% of our business is recurring. 99% is recurring. That is beautiful. Gross margin is 93%. That is also beautiful.

It’s super high gross margin. So we have basically one cost. It’s salaries. Salaries, salaries and salaries. So that’s why this is a key KPI to follow.

The beauty of sauce is that the the revenue is recurring. But the challenge with sauce is that you have to make the investment upfront, have something to sell. And that’s why this curve has been increasing from quite low numbers. We after the funding we did when we IPO ed the company, we needed to really really staff up in the tech teams and so on to to get the head of competition and to and to maintain the strong position we have with the product today. Because it’s all about the products.

It’s all about having a really, really good product, and we do. So but now we can steer gradually over to to becoming profitable. We also did some big changes in the the first half of the year when it comes to head counts. So we have reduced headcounts during the first half of the year. So this line, this curve is not going to follow the same trend as you see on this picture.

It’s going to be a really big bump in q three and q four, and we look forward to show you that in a few months time. Retention rates, net retention 9787% for gross. This is honestly below our internal expectations. We know the market is sluggish, but this is not the way we want to see it. Gross retention is about churn or includes churn and downgrades.

And if you add expansion ARR, then you get the net retention. So downgrades obviously are included in the gross retention. I know that not all companies do that, but we think that’s the way it should be. First half of the year, we had a churn, including downgrades obviously, of $131,000,000, and that is up from 6,200,000.0 first half last year. It’s a really, really big bump in churn, started to hit us in Q3 last year.

And if you look at the mix between downgrades and churn, it’s around fifty-fifty. Actually, had slightly more downgrades than churn in the second quarter, which is of course better because downgrades mean that the customer is still in most cases happy with the product and it’s gonna stay with you in the product, but it’s more that they are downscaling headcount. So at some point in time when market comes back and people, companies start to hire again, we believe that this is gonna hit the net retention and pull it back up where we like it to be. So drivers for increasing net retention, obviously, the market fundamentals is gonna be an important factor. We are, as I said, working on new features, new product enhancements to meet our customers’ needs, to make customers more happy, and to increase the high the hit rates.

And we are changing how we work both in the go to market motion, but even in the product. So it’s a lot of really, really, really big and exciting moments that is going on at the in the company at the time, which is super super interesting and inspiring because it’s really challenging and it’s hard, but it’s we have a we have a really good plan on how to get there, get where you want. Paying customers increased 15% year over year. We ended at 4.4 or 4,400. I guess it’s quite 4 and a half thousand quite soon.

Customers lot it’s of customers. A lot of customers. The ACV or average customer value is around 39%. Sorry. $399,000 SEK.

And this is up 3% since the last year. We are constantly, as I said, adding more features. We are also we opened up the marketplace now for all users to to to showcase all the stuff that you can add on and buy more in one flow. So I’m also working on renegotiation of contracts and so on when customers have had discounts. So it’s a lot of different movements that we are doing to increase the average customer value and we expect obviously this to continue to grow going forward.

And with that, maybe I should leave the stake to you.

Natalie Selve, CFO, OneFlow: Yes, please. Thank you. More than happy to take over. So I’m going to start to talk about our net sales. So we closed Q2 with 42,000,000 in net sales, which is 28% improvement or increase comparing to the same period last year.

If you look at the year to date numbers or the 2025, we closed net sales at approximately 81,000,000, which also is a 28% improvement comparing to last year. As Anders mentioned, the almost all our net sales comes from software recurring revenue, so we really are ARR driven revenue. The old 99% actually is software recurring revenue, and 1% is connected to professional services. So very much an ARR driven company. If you look at the shares of net sales coming from regions outside of Sweden, that is also a percentage that steadily are increasing quarter by quarter, closing at 41% by the end of Q2.

Also, if we look at the sales by country for the first half year, as you can see, Sweden is having 63% of the net sales come from the Swedish regions. We’re quite strong in Sweden. We’ve been the longest in Sweden as well. But we’re quite strong in the Nordics. So you can see Norway, 14% of the net sales comes from Norway and almost 10% from Finland.

And then we have the 14% remaining coming from the rest of the world. And as mentioned previously, we have paying customers in 48 countries. So 48 countries or minus three is representing the rest of the world, so quite a lot of countries. If we’ll take a look at our gross retention gross margin, sorry, that remains to be quite stable and high, ending up at 93% by the end of the quarter. However, you can see it’s quite stabilized the last four quarters.

If we look at the largest cost of service sold expenses that’s related to sales commission to our partners, that’s of course that’s something that you wanna see increase because that means that we are establishing more strategic partnerships. Of course, also we have hosting expenses as part of the cost of service sold, so that’s part of that in those numbers as well. But again, the gross margin have been quite stable, and we do expect it to continue to be quite stable around 92%, 93% going forward. EBIT and EBITDA up. So we closed EBITDA at minus EUR 8,400,000.0 in Q2.

That’s actually 7,200,000.0 improvement comparing to the same period last year. So we are reducing our losses quarter by quarter. If you look at the 2025, we have an EBITDA at minus SEK 17,100,000.0. So that’s actually a 40 improvement comparing to the same period last year. So really reducing our losses quarter by quarter, 40% is a really good improvement comparing to the 2024.

We had an EBITDA margin at minus 20% in Q2.

Anders Hamnes, CEO, OneFlow: EBIT.

Natalie Selve, CFO, OneFlow: EBITDA sorry, EBIT margin. Sorry, Anders. Thank you for correcting me. And the EBITPO margin exactly.

Anders Hamnes, CEO, OneFlow: Sorry. EBIT margin.

Natalie Selve, CFO, OneFlow: Correct. EBIT margin. Exactly. If you look at the numbers, so EBIT, we closed it at minus 20,700,000.0 in Q2. That’s approximately a 4,000,000 improvement comparing to the same period last year.

If you look at the year to date numbers, we closed EBIT at minus 40.1, which is approximately a 13% improvement comparing to the last year. However, one thing that’s important to highlight is that we, during Q2, had a onetime cost of GBP 3,600,000.0, impacting our quarter numbers, and that’s related to our reorganization that we did during the quarter that resulted in a workforce reduction. And accounting wise, we need to take in that full cost as soon as it’s it’s finalized. So 3,600,000.0 have affected the numbers in q two. Now if we would adjust the EBIT towards that 3.6, we actually would would have had an EBIT of minus 17.1% and EBIT margin of minus 41%.

So important to highlight that for Q2. If you look at the EBIT and EBITDA margin, I really like this presentation or this slide because this is really visualizing how we are reducing our losses quarter by quarter. Our main focus, as Anders mentioned, is to steer OneFlow towards profitability. We always review the way of working. We review the organization.

We make sure that we have the best talent in place. We work as efficient as possible. I mean, the reorganization is part of that. And also with increasing in ARR and AR growth, that in combined with our stabilized cost base, we are driving one flow towards profitability, and we are reducing our losses quarter by quarter. Again, if we would adjust EBITDA for Q2, the 3,600,000.0 that we have in onetime cost, we would have, of course, a better EBIT margin of minus 41%.

Our financial goals are not changed. So as Anders mentioned in the beginning of the presentation, we have a year over year AR growth that should be above 30%. But also, as mentioned, in the short time, we are focusing on profitability and the current market situation. We understand that we will not reach the above 30%. However, this is a mid or long term goal.

And our aim is, of course, after reaching profitability to focus on accelerating growth and reach the 30% or above 30% in ARR growth. Our second financial goal is to reach profitability with current funding. So that is something that we actively are working with every day.

Anders Hamnes, CEO, OneFlow: Every day.

Natalie Selve, CFO, OneFlow: All right. So we move on to the Q and As, and let’s see if we’ve received any questions.

Anders Hamnes, CEO, OneFlow: Okay, I can read the first one here. So could you elaborate on the FTE for the quarter? Last quarter, you ended with 157 FTE, and now it’s 1.61. Have you hired during the quarter while still incurring restriction costs? And what should we expect to see in Q3?

Natalie Selve, CFO, OneFlow: Alright, I can answer that question if So that’s okay with of course, I mean, when we look at the FTEs, we look at, you know, all the active employees that we have contractually, and then there could be a case where, as I mentioned, this work force reduction, those people that have been affected are still included in our numbers. And as Anders mentioned, we will see an improvement in ARR per FTE in the upcoming quarters because, of course, we are growing in in Arab, but also we are lowering number of headcounts. So the the the difference between q one, as you mentioned here, and and and q two, that is due to the fact that we yes. Sometimes we are hiring because we realize that we need specific talents to join our journey, so that may happen. However, we’re quite restricted with the recruitments, and and our ambition and aim is to have the, you know, the the top talent in our organization to make sure that we that we, you know, drive Onflow towards profitability and growth.

That’s the main focus.

Anders Hamnes, CEO, OneFlow: Yeah. So the FTE FTE curve is definitely heading down, but, obviously, it’s not not a straight line. It is always a little bit up and down. If you some some roles you need to replace, some some roles you just need to have, but but, overall, this number is is gonna gonna go down now on a more floating basis, so to say.

Natalie Selve, CFO, OneFlow: Should I

Anders Hamnes, CEO, OneFlow: I can read the next one as well. So this could is you just clarify exactly how the ARR with this new method? Is it last month’s recurring revenue times 12?

Natalie Selve, CFO, OneFlow: All right, so I can take that one. So clarify exactly how the ARR with this new method. So basically with the new method that we are doing so as soon as our contract is activated, so basically, when we start deliver service to the client, that is when that is activated as ARR. So compared to how we did it previously, that was as soon as a contract was signed. So as soon as we had a signed contract with a customer, then it was activated as ARR.

Now is actually when you can say the invoice is starting. So when we start deliver, the license period is starting, that is when we activate the contract or the value of the contract as ARR. So that’s the that’s the big difference. And then it when it leaves ARR, so basically when we get the churn, it’s on the contract end date. That is when it it it leaves the ARR.

So that’s the big difference between how we did it and and how we what what we are doing right now. Now the next question if if the new method so is the month recurring revenue multiplied by 12? No. Not really because we take in the full contract value in our AR. So basically, as an example, we sign a two year contract, they get 50% discount the first year.

We’re still taking the full contract value. So it will never be a 100% equal to the revenue. However, in the long term, it should be. But but in the short term, it’s not because we take in the full contract value. However, we only invoice the first year 50%.

Right? So that’s the that’s the difference. Did that answer the question?

Anders Hamnes, CEO, OneFlow: I think so. Yeah. But that’s only the case when it’s kind of discounts. So it’s not like

Natalie Selve, CFO, OneFlow: Exactly.

Anders Hamnes, CEO, OneFlow: Big impact, but but still. So what we actually reported before is what is also commonly known as c a r r, where c stands for committed or contracted. But this KPI is not so kind of, obviously, known, not so many companies talk about it. But it is quite it it is quite common. We we we’ve seen for such companies to sometimes they report ARR, sometimes they report CARR, but they still call it ARR.

Yeah. Like we did in the past. So there there would be be great to have a standard actually in this industry because there is no standard.

Natalie Selve, CFO, OneFlow: Yeah. I do.

Anders Hamnes, CEO, OneFlow: That’s it. Companies it’s up to the companies how you kind of how you report and define and what to include and not and so on. So it would be great with a standard Definitely. Here. But what we how we report it now is is you can call it a live ARR.

And we have when we did this update or changed, we talked with many companies in this space, and we obviously did a lot of research from The US and so on. So how we report it now is it seems to be a more common way of reporting it. But still there are companies out there that report c a r r and call it a r r like like we did. Yeah. Wrong, right?

I mean, up to you to to to decide, I guess. The next one is also employee related, so I’ll leave it to you, Natalia can read it. Regarding personnel downsizing and one offs of 3.6, how many people will leave as part of this and of this. Okay. Number of employees is up four versus that’s the same question as last.

Why are why and are employee reduction visible in the q two employee number of one sixty one?

Natalie Selve, CFO, OneFlow: Yeah. So just trying to understand. So we won’t really comment on how many people that were affected in this downsizing or reorganization that led to workforce reduction. And when it comes to the question if it’s visible in the the q two numbers, no, not yet because they are still I mean, there’s there’s a long tail there. So those numbers, you will see an effect on those in upcoming quarters, not in the q two report.

Anders Hamnes, CEO, OneFlow: Yeah. Next question is on the same line. I don’t know if there’s a tweak to it, so it’s I can read it anyway. So how significant is the cost reduction? What amount of employees or costs are we talking about approximately?

Natalie Selve, CFO, OneFlow: Okay. Can I take this one? Yeah. So so how significant is the cost reduction? I mean, again, we are not doing a we are reviewing, you know, the organization.

We are reviewing the way that we work, and we want to optimize the organization. That’s our main focus. And and and in this case, it it led to a workforce reduction. So, of course, from our perspective, the the goal is to stay one fold towards profitability. We wanna lower our cost base, but doing that without impacting our product, without impacting the quality that we deliver to our customer, we will still invest in our product.

That’s that’s, of course, always our top priority. When it comes to the cost, as I mentioned, I mean, we had a one time cost of 3.6 that that affected the the quarter. That’s, I think, all I can say about the about that. I hope I answered your question.

Anders Hamnes, CEO, OneFlow: Mhmm. Okay. Maybe I can add something more generic to the topic. I mean Sure. That we are reducing headcount does not necessarily mean that we have kind of been wrong in the past and had too many because people, in some areas, yes.

But but but overall, I would say that, the way, SaaS companies or actually maybe even any company operate at the moment, by changing the ways of working, it’s it’s about achieving more with less. You can use so we our AI stack is so heavy. We are really, really kind of using AI to its full extent. And and in in marketing, for example, which is one team that has been heavily impacted by these reductions is I mean, before you needed to write a lot of posts, and it took two days and hours, and and a lot of the work that you do in marketing has been automated today by the use of AI. So so the ways you work is changing.

That’s also part of the explanation why we change in the headcount, number. But, obviously, also, have been too heavily loaded in a few areas. So so yeah. When is the partnership, in The US, expected to show in the numbers? And will ARR from the North America partnership be disclosed by itself or reflected in your total ARR?

I can take it. Sure. Unless you want. No. No.

Okay. So we’re starting to sell in The US now in in September, and the ARR, even though OneFlow only owns 20% of the company today. And then we have and then two board members, Larsen Bank have funded funded the company with 15,000,000 SEK. So even after post dilution, we are gonna own 20% of the company. And we have an option to acquire to buy the remaining 80% for three times the ARR in The US or in North North America in three years, of course, adjusted for the money that we already have in The US.

So we don’t pay for our own money. And the ARR that we closed in US is gonna land 100% on top of our ARR. And then we have a market based partner commission between the companies. And our cost for that ARR is gonna land on cost of goods sold. That is not the term that is used in IFRS.

So it’s gonna land under other costs in the in our p and l, other costs, but that internally is gonna land in what we call cost of goods sold and the gross margin. Gross margin is not the indirect term that is defined by IFRS for some strange reasons, I don’t know why, but that’s how it is. So yes, and the reason why this is we had a discussion with our auditors about this since you don’t own own 50 or more, should it be incorporated or not. But this is since this is what we call is the English term an interest company? Interest company.

Yeah. So this is how it is done by IFRS. So this is actually not I mean, that you could choose. This is this is how you do it, kind of. Yep.

Okay then. I guess that was last question this time. Yep. Good. Then we wish you all an amazing Friday and a good weekend, upcoming weekend.

Natalie Selve, CFO, OneFlow: Definitely. Happy Friday. Thank you for your time. Thank you. Cheers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.