Carnegie Investment Bank
eEducation Albert
Date Title Alternative
2024-05-14 Another challenging quarter Download | Show Close
2023-11-24 Steps towards profitability Show Close
2023-10-04 Change in revenues not reflected in valuation Show Close
2023-08-24 Impressive B2B revenues Show Close
Research | 24 Aug 2023 | eEducation Albert

Impressive B2B revenues

 

Solid B2B growth; lower B2C

Revenues reached SEK 51.0m in Q2, suggesting growth of 64% y/y. Organic growth came in at -5%, explained by the company investing less in marketing, meaning lower growth in B2C. Albert had campaigns in B2C over the summer that will add to growth during Q3 2023. ARR at the end of the quarter was at SEK 206.1m. Growth was 58% y/y and -5% q/q. The reason behind the q/q decline can be traced back to the lower marketing investments. EBITA came in at SEK -6.9m for the quarter. This can be compared with SEK -12.6m last year. The improvement stemmed from the
initiatives the company announced with its Q4 2022 report, with operational cash flows for H1 of SEK -2.7m versus
SEK -32.6m during H1 2022.

Shift in revenues not reflected in valuation

Albert targets turnover of SEK 500m by 2025. We believe this should be the basis for both estimates and valuation. We consider the acquisitions being finalised in early 2023 is a major step along the path towards this goal. In our view, Albert should see a revaluation in the wake of these acquisitions thanks to a much greater proportion of B2B revenues than before. These are less volatile than their B2C counterparts, justifying a higher valuation. Moreover, we believe its journey towards profitability and positive cash flows during H1 2023 is not reflected in the share price.

 

On track towards profitability and new revenue mix

Given that the company is now prioritising its path to profitability, we lower our total revenue estimates by 8.5% for 2024 and 13.1% for 2025. This is a direct consequence of us reducing forecasts for marketing investments in the future. Based on the lower marketing investments, we only reduce our EBITDA estimates by SEK 2.5m for 2024 and SEK 9.2m for 2025. We also make a minor adjustment to our fair value, taking it to SEK 45–47 (47–50). We do not see Albert’s journey towards profitability as reflect in its current share price.

 

Download (EN)
2023-05-30 Healthy cash flows and steps towards profitability Show Close
2023-04-21 Reduced revenue volatility not reflected in valuation Show Close
2023-03-07 Acquisitions push company closer to goal Show Close
2022-11-03 Big stride towards financial targets Show Close
2022-07-19 Strong growth during the quarter Show Close
2022-03-17 A European market leader Show Close

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