1 OCTOBER – 31 DECEMBER 2023

• Annual recurring revenue (ARR) amounted to SEK 188.2 (154.7) million, corresponding to an increase of 22 percent.
• Net sales amounted to 48,278 (34,178) TSEK, corresponding to an increase of 41 percent, of which -19 percent relates to organic growth and 60 percent acquired growth.
• EBITA amounted to -1,091 (-22,819) TSEK. Nonrecurring items affected EBITA with 9,152 TSEK.
• The result after financial items amounted to -22,611 (-29,549) TSEK.
• Profit/loss for the period amounted to -23,598 (-27,853) TSEK.
• Earnings per share amounted to -0.94 (-1.57) TSEK, before and after dilution.
• Cash flow from operating activities amounted to -5,294 (-11,589) TSEK.
• Cash and cash equivalents at the end of the period amounted to 80,482 (104,144) TSEK.

1 JANUARY – 31 DECEMBER 2023

• Net sales amounted to 195,077 (123,055) TSEK, corresponding to an increase of 59 percent, of which -3 percent relates to organic growth and 62 percent to acquired growth.
• EBITA amounted to -25,096 (-78,888) TSEK. Nonrecurring items affected EBITA with 6,048 TSEK.
• Result after financial items amounted to -85,157 (-102,445) TSEK.
• Profit/loss for the period amounted to -79,897 (-97,664) TSEK.
• Earnings per share amounted to -3.18 (-5,51) SEK, before and after dilution.
• Cash flow from operating activities amounted to -18,085 (-65,679) TSEK.
• Net cash (-) / debt (+) at the end of the period amounted to -68,689 (-104,144) TSEK.
• Cash and cash equivalents at the end of the period amounted to 80,482 (104,144) TSEK.

SIGNIFICANT EVENTS DURING THE FOURTH QUARTER 2023

• Albert and Akelius Language Learning deepen their collaboration in a larger project aiming to
• evaluate the commercial viability of Akelius’ products and Albert’s ability to market them to new target groups.
• A new mathematics product, “Holy Owly Math,” has been developed and launched in France.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

• Albert introduces a profitability programme, setting a target for achieving positive EBITDA by 2025.
• An organisational restructure is announced by Albert to enhance efficiency and expedite the integration of acquired companies. The new structure will be implemented on 1 April, 2024.
• Deputy CEO Anne-Louise Wirén announces her departure from her position at Albert. She will continue in her role during the spring, ensuring a seamless transition to the new organisational structure.
• Albert announces that founders Salman and Arta will leave their operational roles in the company during the first quarter.

Comment from our CEO and deputy CEO

2023 has been a year for Albert to navigate through challenging market conditions, focusing on integrating the acquired businesses, accelerating the journey to profitability, and crafting our forward-looking strategy. Our focus on profitability has yielded results; at the same time as the integration of the acquired businesses has put pressure on our financial results as we build a robust structure for managing the group and enabling future acquisition. 

The fourth quarter presented us with a set of challenges, including unfavourable exchange rates, one-time costs, and seasonal effects. They affected the EBITA negatively with approximately 3.4 million SEK compared to the third quarter 2023. At the same time, a number of non-recurring items affected the EBITA positively with 9.2 million SEK. This resulted in an EBITA of -1.1 MSEK for the fourth quarter. Disregarding the non-recurring items, the normalised EBITA would be -10.3 million SEK. Compared to the fourth quarter of 2022, both EBITA and revenues show strong development. When summarising the financial results for the full year of 2023, it is evident that our steadfast focus on profitability yields results. Combined with our efforts in integration and strategy, it positions us for continued improvements in 2024 and beyond.
 
Beyond the numbers, there are some noteworthy highlights deserving attention, such as the increase in share of revenue from the education sector (B2B), now at 54 percent, reflecting our strategic emphasis on B2B.

The consumer business is stable, with underlying KPIs such as customer acquisition, ARPU and churn being in line with previous quarters. One positive trend is the increasing share of customers choosing annual subscription plans. The recently launched maths product in France has started strong in terms of customer acquisition and retention.

Spring 2023, Albert entered into a partnership with Akelius Language Learning. The first phase of the project was deemed successful by both parties and in the fourth quarter the collaboration was extended throughout the end of 2023 and the first half of 2024. The size of the new project is ten times larger than the pilot project and fully financed by Akelius.

In the fourth quarter, we rolled out our proprietary streaming service for feature films, as part of our film service platform for the Swedish market. This marks a significant milestone, anticipated to enhance gross margin, increase control over the customer experience and serve as the groundwork for exploring additional revenue streams.

In the education sector, the buzz at the end of the year revolved around the 2022 PISA study results, which underscores a decline in performance across OECD countries. The report also sheds light on the role of digital tools and highlights a positive correlation between moderate use of high quality digital tools and higher performance in school. The PISA results have increased the interest in Albert Group and our products; for instance, our PISA related communication shows high marketing conversion numbers.

After the end of the fourth quarter, we made the decision to launch a profitability programme. Set for execution in the first half of 2024, the program is expected to yield a positive EBITDA for the full year of 2025. We will accelerate the integration of acquired companies, increase focus on B2B, and improve efficiency by a significant reorganisation resulting in a staff reduction of 25-30 employees, primarily affecting B2C. We have also made the decision to write down values related to the parent company’s shares in the acquired companies, intangible assets and goodwill due to the increased uncertainty in the macro environment and increased interest rates. This has resulted in a negative one-time effect on the Group’s EBIT result of 8.3 million SEK in the fourth quarter. The acquired companies all play central roles in the Albert Group and our confidence in the future development of them remains.

Looking ahead, we continue to remain optimistic about the future. We are well-positioned in the growing EdTech industry, the path to profitability is clear, and we now establish a robust and scalable organisation. 

We extend our gratitude to our dedicated teams, loyal users, and shareholders, who collectively continue to contribute to our mission. 


– Jonas Mårtensson, CEO, and Anne-Louise Wirén, deputy CEO