Eeducation Albert Ab · OMXSTO:ALBERT
Eeducation Albert Ab — Q4 2024 Earnings Presentation
32 slides from Eeducation Albert Ab's earnings presentation, Feb 28, 2025
Slide 1: Albert Group Q4 2024 report presentation
Albert Group Q4 2024 report presentation 28 Feb 2025
Slide 2: Today's presenters
Today’s presenters Jonas Mårtensson Katarina Strivall CEO CFO 2
Slide 3: Agenda
Agenda 1 2 3 4 About Albert 2024 and Q4 Looking Q&A results forward 3
Slide 4: Albert at a glance
Albert at a glance Journey to Leading B2B+B2C Nordic EdTech Group with Dual revenue streams profitability focus on the Nordics, UK for predictability and Goal to be EBITDA and US scalability positive in 2025 and cash flow positive in 2026 Core subjects Engagement Funded Curriculum-based products in ma
Slide 5: Summary
Summary Full year 2024 ■ Focus on profitability: many actions taken to set us up for 2025 ■ Reduced staff costs thanks to restructuring in Sweden and France; some of it is seen now, the rest in spring 2025. ■ Commercial readiness to drive sales growth in 2025 ■ Enter 2025 with a strong business plan
Slide 6: Agenda
Agenda 1 2 3 4 About Albert 2024 and Q4 Looking Q&A results forward 6
Slide 7: Formal education is facing challenges
Formal education is facing challenges Many children struggle with Lack of equal access to Not all children can get the school, especially maths qualified teachers help they need at home School results are declining and socioeconomic inequalities increase 7
Slide 8: Help every child reach their full potential through engaging and personalised learning
Help every child reach their full potential through engaging and personalised learning 8
Slide 9: Engaging learning tools
Negative Not challenged attitude to by school school ENGAGING LEARNING TOOLS Special needs 9
Slide 10: Most edtech competitors positioning map
Engaging & Gamification fun Creativity Pedagogy Mo st edt ech Game com Education pet itor s Textbooks Dry 10
Slide 11: Learning at School and at Home
Learning at School and at Home School Home Teacher Parents
Slide 12: Broad portfolio of learning products
Broad portfolio of learning products… Digital apps Construction & STEM* Films *STEM = Science, Technology, Engineering & Maths
Slide 13: Under 8 strong brands in key markets
…under 8 strong brands in key markets New
Slide 14: Agenda
Agenda 1 2 3 4 About Albert 2024 and Q4 Looking Q&A results forward 14
Slide 15: Operational key points 2024 full year and Q4
Operational key points 2024 full year and Q4 15
Slide 16: Setup for profitability & positive sales trend
2024 Setup for profitability & positive sales trend Initiative: Description: Effect: Moved from multiple independent companies to a ■ Lower staff costs Restructure united, functional and flatter organisation. ■ Easier to identify & extract synergies organisation Right-sized B2C organisation to match r
Slide 17: Invoiced sales +14% YoY in normally slow Q4
Q4 Invoiced sales +14% YoY in normally slow Q4 B2C . ■ Continued strong momentum since the summer ■ Q4 campaign was strong with high volumes, good CAC and initial low churn ■ Continue with increased marketing which adds costs now but will pay off during 2025 B2B.. ■ Educational films in Sweden went s
Slide 18: Product development for future growth
Q4 Product development for future growth Several product development initiatives in their final stages and preparing for launch Localise to National exam Streaming site Align to Texas “Fluency booster” Czech Republic preparation for films curriculum for improved maths practice 18
Slide 19: Financial key points 2024 full year and Q4
Financial key points 2024 full year and Q4 19
Slide 20: 2024: Positioned us for sustainable growth and profitability
2024 2024: Positioned us for sustainable growth and profitability. Full year 2024 MSEK 2023 2024 ● Invoiced sales 183 MSEK (181) Invoiced sales 181 183 ● Net revenue 178 MSEK (178) Net revenue 178 178 ● Lost sales in the areas we choose to reduce investments in (e.g. France), but EBITDA adjusted -16
Slide 21: Sales: Good sales in a typical slow quarter
Q4 Sales: Good sales in a typical slow quarter ● Net revenue 44.7 MSEK (44.0) corresponding to +2% +14% ● Invoiced sales 37.8 MSEK (33.2) corresponding to +14% +2% ● B2C had strong Q4, one of the best ever. ● B2B is normally slow in Q4, but strong film sales to Swedish schools made Swedish Film reach
Slide 22: Net revenue: split by different segments
Q4 Net revenue: split by different segments TARGET GROUP BUSINESS MODEL MARKET B2B physical products RoW non-subscr. B2C digital Nordics B2B UK products B2B digital subscription products non-subscr. 8% B2C US B2B digital products subscription ● Mix very similar as same last year ● Mix follows the no
Slide 23: EBITDA: Positive events not yet seen in result
Q4 EBITDA: Positive events not yet seen in result ● EBITDA -8 MSEK, which is 2 MSEK lower than last year adjusted for the one time effects back then. Difference: One time effect (profitability program) ● Higher revenue (+) Sales and recognised revenues were stronger, with consistent gross margin ● Hi
Slide 24: Cash flow: in line with plan, some invoiced sales not paid yet
Q4 Cash flow: in line with plan, some invoiced sales not paid yet ● Total cash flow -15 (-11) MSEK in Q4 ● Cash flow from operations -13 (-5) MSEK in Q4. ● The main difference is due to lower operating result in Q4 ● Period end cash balance 44 MSEK ● Late strong December sales will be paid in January ●
Slide 25: Agenda
Agenda 1 2 3 4 About Albert 2024 and Q4 Looking Q&A results forward 25
Slide 26: Four step plan to profitable growth
Four step plan to profitable growth Next: Now: Profitable growth 2023: Reach profitability -2022: Lay solid foundation Build market position ● Grow existing business ● Switch from Growth to ● Sustain sales and adapt ● Become leading engaging through investments in Profitability focus cost structure and
Slide 27: Financial objectives
Financial objectives Achieve positive Achieve positive cash flow Strive for double digit 1 2 3 EBITDA 2025 2026 with existing cash profitable growth To prove that the business ToAchieve ensurepositive we are cash financially flow To drive Strive long term for double digitprofitable profitable model is pro
Slide 28: Path to profitability
Path to profitability… ■ Ambition to grow sales and recognised revenue from 2024 to 2025. ■ H2 2024 showed good momentum in invoiced sales: +11% YoY in Q3 and +14% in Q4 Revenues ■ Continue to focus on sales in 2025 and also recognise already invoiced sales ■ Assume normal seasonality: continue build
Slide 29: …to be realised through key initiatives
…to be realised through key initiatives ■ Reduce churn in Scotland by improving product and customer success ■ Win new business in England by increasing resources in RevOps Grow B2B ■ Capitalise on strong momentum in US Strawbees sales ■ Capture higher share of film market through new streaming site
Slide 30: Summary: Standing strong for turning to profitability in 2025
Summary: Standing strong for turning to Summary profitability in 2025 Profitability programme executed Focus on high performing areas Restructured organisation with lower running costs and strengthened commercial organisation Strategic product launches in the pipeline Positive momentum in sales 30
Slide 31: Agenda
Agenda 1 2 3 4 About Albert 2024 and Q4 Looking Q&A results forward 31
Slide 32: Questions & Answers
Questions & Answers 32