In Q2, B2C represented around 50% of Albert’s revenues. These revenues stem largely from monthly or annual subscriptions. Moreover, we believe the market also overestimates the churn risk in monthly subscriptions. We believe end-customers prioritise Albert’s services. At the same time, prices for different forms of marketing have decreased, allowing Albert to expand its B2C business. As marketing costs have diminished as a proportion of turnover, the company is closing in on profitability. In addition, we anticipate decent growth in H2 as the start of the school term often brings good growth in volumes.

Albert targets turnover of SEK 500m for 2025, and we believe this goal should form the basis for both estimates and valuation. In our view, Albert’s acquisitions in early 2023 represent a large step towards this target, and the share price should see a revaluation as the company now has a considerably higher share of B2B revenues than before. These are less volatile than their B2C counterparts, justifying a higher valuation. Moreover, we do not believe the journey towards profitability and positive cash flows Albert has taken during H1 2023 is reflected in the share price.

Unchanged view on valuation and estimates