Press release
9 May 2024
Oneflow publishes its interim report for the first quarter of 2025:
- Net sales increased 27% to MSEK 39.2 (30.8). Share of Net sales outside Sweden increased to 40% (33) with paying customers in 40 countries.
- EBIT was MSEK -19.4 (-21.5), with an EBIT margin of -49% (-70).
- Net income for the period amounted to -19.2 (-21.3).
- Basic earnings per share amounted to SEK -0.68 (-0.84) and diluted to SEK -0.68 (-0.84).
- Total ARR YoY increased 23% to MSEK 164.6 (134.0). Net New ARR for the first quarter amounted to MSEK 5.6 (12.4).
- During the quarter cash-flow from current operations amounted to MSEK -4.1 (-7.6).
- Total cash and cash equivalents amounted to MSEK 84.3 (78.1).
Oneflow publishes its preliminary monthly ARR for April.
Oneflow had a total ARR (Annual Recurring Revenue) of MSEK 166.2 by the end of April 2025. This is a preliminary number.
Anders Hamnes, CEO and Founder of Oneflow, comments:
"Total ARR reached MSEK 164.6 at the end of the first quarter of 2025, representing a 23% increase from MSEK 134.0 in the first quarter last year. Net New ARR for the quarter was MSEK 5.6, compared to MSEK 12.4 in the same period last year. However, this requires some context.
First, we faced a currency headwind of MSEK 3.4 during the quarter, as approximately 40% of our ARR is denominated in foreign currencies. Second, market sentiment remains challenging-sales cycles are lengthening, and overall willingness to invest continues to be subdued.
We introduced a new ARR calculation method in January. Under the updated formula, New and Expansion ARR is now recognized on the contract start date, rather than the contract signature date, and churn is recognized on the termination date, rather than the notice date. As a result, although Gross New ARR signed in the first quarter totaled MSEK 12.9, only MSEK 6.9 was recognized during the quarter. The remaining MSEK 6.0 will be included in future periods.
In our previous press releases from January, February, and March, we reported preliminary ARR figures that were slightly higher. This is because we initially planned not to retroactively adjust 2024 figures to reflect the new ARR formula-we intended to leave previously reported numbers unchanged. However, upon further consideration, we recognized that this approach created a slightly misleading view of our underlying performance. To improve transparency and provide a clearer picture of growth and retention trends, we have now decided to restate historical figures according to the new ARR methodology. These restated KPIs can be found in the 'Oneflow in Summary' section, starting on page 6.
Gross Retention Rate was 89% (90) at the end of the first quarter. Expansion ARR remains under pressure due to the market environment, leading to a Net Retention Rate of 101% (109) for the quarter.
We are seeing solid progress on profitability. Our EBIT margin improved to -49%, up from -57% in the fourth quarter and -70% in the first quarter of last year. EBIT losses for the quarter were MSEK 19.4, of which MSEK 1.0 was due to negative currency effects. We have implemented several cost-reduction initiatives, and we remain confident that EBIT will continue to improve steadily throughout 2025.
Our financial targets are twofold: to maintain ARR growth above 30% and to reach profitability within existing funding. We continue to stand by our profitability target. However, in the short term, we will not reach the 30% growth mark in the current market environment. Our immediate priority is to become profitable. Once we achieve this milestone, we will shift our focus back to accelerating growth, while remaining profitable. Our long-term goal of surpassing 30% ARR growth remains unchanged.
Say contract, think Oneflow!"
Oneflow's report presentation webinar
Anders Hamnes, CEO and Founder of Oneflow, and Natalie Jelveh, CFO of Oneflow, will present the report and answer questions in a webinar at 10:00 CET on the same day. The presentation will be held in English.
To join the conference, please register here: https://oneflow.zoom.us/webinar/register/WN_NO6kUAN1QnGM89mjS4MZOw
Report and presentation will be available for download on our website here: https://oneflow.com/ir/investors/financial-reports/
This information is such information that Oneflow AB (publ) is obligated to make public according to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at the time stated by Oneflow's news distributor Cision at the publication of this release.
For further information, please contact:
Anders Hamnes, CEO and Founder
Mobile: +46 76 788 50 76
Email: anders.hamnes@oneflow.com
Certified Adviser is FNCA Sweden AB.
About Oneflow
Oneflow develops a contract automation platform powered by AI, helping businesses achieve a fully automated contract process. Contracts are at the heart of all businesses and yet, while the world is undergoing digital transformation, contracts are stuck in a frustrating mess between PDFs, legacy systems, inboxes, just to get a contract signed. Oneflow believes there's a better contract workflow. One that is intelligent, easy, rich in data, gathers every step of the process in one place, allowing for better clarity and collaboration between all parties involved. And people can get on with what they do best. With Oneflow, contracts are smarter, giving our users an experience so delightful, it feels like magic. Get started for free at oneflow.com.
