Strong Y-o-Y growth, record gross margin, improved profitability and a 91% growth in pipeline
APRIL TO JUNE 2025
- SaaS API Call revenues amounted to 12.7 (7.0) MSEK, +81%
- SaaS API Call volumes amounted to 53.2 million (31.5), +69%
- SaaS ARR in constant currency(*) amounted to 70.1 MSEK (43.7), +60%, and +49% in nominal growth
- Total ARR in constant currency(*) amounted to 89.7 MSEK (74.3), +21%, and 13% in nominal growth
- Net Revenue Retention Rate (NRR) +129% (134)
- Net sales amounted to 22.1 MSEK (19.3), +15%
- Gross margin amounted to 88% (79)
- EBITDA adjusted amounted to -3.9 MSEK (-6.3), +38%
- Earnings per share amounted to -0.0 SEK (-0.1)
JANUARY TO JUNE 2025
- SaaS API Call revenues amounted to 27.4 (12.2) MSEK, +125%
- Net sales amounted to 47.4 MSEK (36.4), +30%
- Gross margin amounted to 87% (79)
- EBITDA adjusted amounted to -5.4 MSEK (-14.8), +64%
- Earnings per share amounted to -0.1 SEK (-0.1)
EVENTS DURING THE QUARTER
- Key customer renewals with AT&T, Swisscom and Italian bank BPM, also migrating from non-SaaS to SaaS
- Teneo.ai partners with CloudHesive to Supercharge Amazon Connect/ConnectPath CX with AI-Driven Automation
- Teneo.ai partners with EBO, a trusted provider of AI-powered patient engagement solutions in healthcare
- Teneo.ai partners with Future Generation Systems (FGS) in Türkiye, a Vodafone Türkiye technology company
- Teneo.ai started three Proofs of Concepts in the healthcare and consumer services verticals
- Teneo.ai Launches First Voice AI Accelerator for Genesys Cloud Platform
- Successful completion of SOC 2 Type II audit, underscoring the highest standards of data security for our clients
EVENTS AFTER THE QUARTER
- Renewal of SaaS agreement with CGI regarding one of the largest National Healthcare Providers in the world
- Renewal of SaaS agreement with MedHelp Care, one of Sweden's most used health platforms
- Teneo.ai invited to speak at Genesys customer event in Nashville
- Teneo.ai achieves top scores for Customer Satisfaction Across all Vendor Categories in DMG Consulting's 2025 Conversational AI Solutions Report
KEY FIGURES (FOR DEFINITIONS PLEASE SEE PAGE 18)
| APR-JUN 2025 | APR-JUN 2024 | JAN-JUN 2025 | JAN-JUN 2024 | JAN-DEC 2024 | |||
| Net sales (MSEK) | 22.1 | 19.3 | 47.4 | 36.4 | 84.1 | ||
| Recurring revenues (MSEK) | 22.0 | 19.1 | 47.3 | 36.1 | 83.5 | ||
| ARR (MSEK) | 83.7 | 74.3 | 83.3 | 74.3 | 103.9 | ||
| SaaS ARR (MSEK) | 65.2 | 43.7 | 64.8 | 43.7 | 75.1 | ||
| ARR in constant currency (MSEK) | 89.7 | 74.3 | 89.3 | 74.3 | 103.3 | ||
| SaaS ARR in constant currency (MSEK) | 70.1 | 43.7 | 83.3 | 74.3 | 74.6 | ||
| SaaS API Call Revenues (MSEK) | 12.7 | 7.0 | 27.3 | 12.2 | 36.3 | ||
| SaaS API Call Volumes (average Million) | 53.2 | 31.5 | 53.2 | 31.5 | 60.3 | ||
| NRR % | 129% | 134% | 129% | 134% | 135% | ||
| Gross margin % | 88% | 79% | 87% | 79% | 79% | ||
| EBITDA adjusted (MSEK) | -3.9 | -6.3 | -5.5 | -14.8 | -22.3 | ||
| Opex Runrate | -117 | -112 | -117 | -112 | -115 | ||
| Earnings per share (SEK) | -0.0 | -0.1 | -0.1 | -0.1 | -0.2 | ||
| Cash flow from operating activities before changes in working capital (MSEK) | -4.0 | -8.8 | -13.1 | -12.9 | -30.6 | ||
(*) Same currency rate as in the second quarter of 2024.
CEO STATEMENT
Dear Shareholders, Team Teneo.ai and Partners,
The second quarter 2025 marks another strong growth in Y-O-Y numbers and some significant milestones in our focus on new customer engagements, with a doubled pipeline Q-o-Q. The M&A market has also heated up during the summer with some large investments and acquisitions that prove to us and customers that the Teneo hybrid ML, LLM is the right AI solution for Voice.
Market Overview
The mindshare of OpenAI has been deafening in the last few years. Sam Altman's predictions gain more headlines than wars. This has led to all our customers experimenting with companies that provide wrappers on top of LLM's. This is different than our approach - we use proprietary technology in Teneo to understand what customers are calling about. This technology is based on traditional Machine Learning as well as Small Language Models and in the development of the customer solution Large Language Models are used. Newly minted companies that have seen a lot of investments and gained attention such as Sierra.ai use only Large Language Models.
In July we saw an acquisition that validates our approach. Cognigy, was acquired in July by NiCE (number two in Contact Center Software) at a valuation of 26 times sales including Professional Services. Total purchase price of 955 MUSD. Their technology is a platform using deterministic models just like ours. NiCE could of course have acquired any of the LLM wrapper companies at a much lower price but chose to acquire a comprehensive platform. This proves that to really have impact in the Contact Center you need to use deterministic technologies rather than only Large Language Models.
Customers are slowly arriving at the same conclusion. We are currently engaged in three proofs of concepts where we see great increases in accuracy with our approach. The pure LLM players are currently increasing the sales cycle but luckily LLM's are also more expensive to use in production so this does not increase price pressure.
When considering Enterprise features such as security, accuracy, and performance Teneo remains uniquely positioned in the market, effectively managing high-volume telephony operations and automating up to 91% of incoming calls (more on this new number below), offering unmatched efficiency and reliability.
Teneo.ai has a large proportion of our business with US customers. The company maintains a stable outlook, with no immediate risks aside from currency exchange rates identified from current U.S. administrative actions or proposed economic measures, including toll tariffs. Sales Cycles have increased as many customers are restrictive with investments in an uncertain environment. The positive side of the current development for Teneo is an increased focus on cost reductions which increases the interest in adding AI Agents into the workforce.
Pipeline Development
Sales and Marketing in the second quarter 2025 prioritized qualifying the opportunities created in the first quarter 2025 and putting focus on the closeable opportunities. We also broadened our geographical focus to include Turkey where we see interest in our solutions.
Partnerships
Two important additional partnerships were signed during the second quarter 2025. EBO.ai, a company focused on automation that delivers to the same National Healthcare unit that CGI and we renewed the agreement just after the second quarter 2025. Together we are building a role model hospital contact center built on Teneo in the Middle East that we also will be showcasing to UK and US prospects. By combining EBO's healthcare trained AI models with Teneo we will be able to increase patient access and satisfaction while freeing up valuable care resources.
We also welcome FGS as a partner. FGS is part of the Vodafone group and has a very strong presence in Turkish Enterprises. Their local knowledge combined with a strong Turkish enterprise interest in using AI to automate Customer Care make this ideal for Teneo collaboration and we already have several joint opportunities we are addressing.
Analysts
In the Contact Center space there is an analyst that is trusted by more enterprises than any other. That is DMG Consulting.
In the DMG Consulting's 2025 enterprise report where we participated for the first time, Teneo.ai earned perfect customer satisfaction scores across seven key areas, including implementation, pricing, and overall vendor satisfaction. This achievement is particularly significant because it's based on feedback from actual enterprise customers, validating Teneo's voice-first agentic AI platform for contact center automation. The perfect scores underscore the Teneo's ability to deliver value through high accuracy rates and substantial operational cost savings. For Teneo, this recognition solidifies our position as a trusted and leading partner in a competitive market, where customer satisfaction is a critical differentiator.
Customer Feedback
Our Teneo is the only tool that has the accuracy and performance to actually replace people answering the phone. In the second quarter 2025, we got this confirmed by one of our very large customers. This customer has 10 million inbound calls per month. In order to serve these customers correctly the most important component is understanding why they are calling. This is called Natural Language Understanding. This is the step that entails both the accuracy in transcribing speech to text and then parsing understanding from this text. In this customer the understanding was 99% - which is much better than any other solution. But even more importantly 91% of all calls were manged by Teneo instead of a human leading to higher customer satisfaction. That is 9.1 million automated calls per month. Astonishing ROI!
Strategic Sales Events
During second quarter 2025, we have focused on developing the opportunities that we created in the first quarter 2025. We have moved six to qualified, three into proposal sent and we have three in the stage Pilot/POC. This means that we are progressing our opportunities and focusing the work on closing. The pipeline almost doubled to 2 MEUR in weighted numbers primarily due to the progression of our opportunities.
Our new sales pipeline is measured as a 12-month subscription value, excluding future API calls-though API calls make up most of our revenue. The pipeline is weighted based on the sales stage of each opportunity and does not include additional revenue from existing customers.
For example, consider a sales opportunity for a new customer similar to one of our large existing clients. If this opportunity is in the *qualified* sales stage, it would be valued at:
9,900 times 12 months times 20% (weight for qualified stage) = approximately 24,000 EUR.
While the long-term potential revenue from such a customer could be 3.5 MEUR per year, our pipeline reflects only 24,000 EUR at this stage.
Since our first quarter 2025 report, our weighted pipeline has again almost doubled to 2 045 000 EUR from 1 050 000 EUR in our first quarter 2025 report. Our pipeline progression this quarter is mostly driven by our opportunities moving up in sales stages thereby increasing the probability of closing. We have fewer opportunities in total as we have qualified out some of the created opportunities in the first quarter 2025. The remaining pipeline includes major enterprises across various sectors, driven by factors such as the discontinuation of Nuance (the foundation for traditional keypad navigation systems) and our partnership with Genesys and the associated eco system. Our first opportunity where AWS has engaged together with our partner Cloudhesive is also a promising development opening up more avenues for pipeline development.
Preparation for Teneo 8 rollout
During the third quarter 2025 we will be rolling out the biggest update to our Teneo ever. The details will be released at a later stage during the quarter. In preparation for this we have been pushing legacy, chat only customers to accept upgrading to the new codebase. We delivered a record gross margin of 88% in the second quarter 2025, but in order to further bring up our gross margin we want all customers to use one and the same codebase. Customers that use chat only in Teneo do not see the value in the solutions as does a voice customer and therefore those that are not able to move to voice will likely not be moving to the new codebase. In our forward looking ARR metric we have taken this into account. Those customers are costly for us to serve and the functionality we are pushing in the new release is very important for our enterprise voice prospects and customers.
Last quarters change in how we operate our SaaS has brought the cost savings and associated higher Gross Margin as projected.
Autumn focus
Looking ahead we have the partnerships and pipeline to deliver on our goal to hit 20 MUSD ARR within the first quarter 2026. Selling to large enterprises involves many stakeholders and many hoops to go through. Once we are in the process, we see that our message resonates and when we have the chance to prove our technology we never fail. We have enough qualified opportunity to reach our goal - now its closing focus.
I want to express my sincere gratitude to our dedicated team, our valued partners, and exceptional customers for their continued collaboration. And of course, to our shareholders who continue to support us on this journey!
Thank you all for your continued support and confidence.
Sincerely,
Per Ottosson, CEO
Teneo.ai
This information is information that Teneo.ai is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-08-19 07:30 CEST.
For further information, please contact:
Fredrik Törgren, CFO, Teneo.ai
e-Mail: fredrik.torgren@teneo.ai
About Teneo AI AB
Teneo.ai (SSME:TENEO)?delivers the most advanced Agentic AI solutions for contact center automation-helping enterprises resolve customer inquiries faster, reduce wait times, and elevate service quality. Our AI Agents achieve up to 99% accuracy, automate over 60% of interactions, and enable up to 50% in operational cost savings.
Trusted by global leaders like AT&T, HelloFresh, Swisscom, and Telefónica, the Teneo platform combines Conversational AI, Generative AI, and Large Language Models to drive measurable improvements in containment, first contact resolution (FCR), CSAT, NPS, and overall CX efficiency.
Teneo-powered AI Agents handle millions of conversations daily across voice and digital channels with enterprise-grade scalability and performance. Our patented technology integrates seamlessly with leading CCaaS and CX platforms-including Genesys, Five9, Microsoft, AWS, Google, and NICE-maximizing automation without disrupting existing workflows.
We make your AI Agents the smartest-delivering consistent, human-like experiences that accelerate growth and ROI.
Teneo.ai is listed on Nasdaq First North Growth Market in Stockholm with short name TENEO. Redeye is the Company's Certified Adviser.
Learn more at?www.teneo.ai/investors.
This report and previous financial reports are available on the company's webpage for Financial Reports.
