Slide 1: Q1 2025 Investor Presentation
Q1 2025 Laurinda Pang, CEO I NV E STOR P RE SE N T AT I ON Jonas Dahlberg, CFO MA Y 8, 2 02 5 Ola Elmeland, Investor Relations
Slide 2: First quarter highlights
First quarter highlights 01 02 03 Increased growth Resilient financial Product and performance innovation spotlight • Net sales grew 4% year-on-year, 3% • Gross margin 34% (34) • Additional AI-driven capabilities in organic Mailjet and Mailgun • Adjusted EBITDA margin of 13% (12%), • Gross profit gr
Slide 3: Performance by segment
Performance by segment Americas EMEA APAC • 4% year-on-year organic growth in net • 7% year-on-year organic growth in net • 4% year-on-year organic decline in net sales and 1% organic growth in gross sales and 3% organic growth in gross sales while organic gross profit grew 5% profit profit • Gross
Slide 4: Sinch strategy for value creation
Sinch strategy for value creation Growth EBITDA margin Active capital reacceleration expansion allocation We are focused on profitable and We are reshaping our business to We are driving continued strong sustainable growth expand margins over time cash generation • Enterprise expansion • Product mix
Slide 5: Steady increase of new large enterprise customers
Steady increase of new Growth EBITDA margin Active capital reacceleration expansion allocation large enterprise customers Number of customers generating more than 2 MSEK annualized GP • About 500 large customers represent more than 60% of total gross profit • High lifetime value as well as upsell an
Slide 6: Self-service business growing rapidly
Self-service business Growth EBITDA margin Active capital reacceleration expansion allocation growing rapidly Gross Profit from Self-serve offerings • Large number of customers representing more than 15% of Sinch gross profit • High growth and high gross margin segment. • Globally scalable business
Slide 7: RCS momentum building
RCS momentum building Growth EBITDA margin Active capital reacceleration expansion allocation • Launch of Sinch RCS Business Enablement Service • Sinch's RCS Business Enablement Service is designed to help telcos seamlessly launch, operate, and monetize RCS for Business • Sinch Makes RCS Accessible
Slide 8: Consistent strong Email performance
Consistent strong Growth EBITDA margin Active capital reacceleration expansion allocation Email performance • Email Volume • 165B emails sent, double digit year-on-year growth • Double digit organic Net sales and GP growth year on year • Customers and Partners • Completed onboarding of two large ent
Slide 9: Partnering to drive scalable growth
Partnering to drive Growth EBITDA margin Active capital reacceleration expansion allocation scalable growth • Strong momentum in partnerships & ecosystems • Solid growth in partner-driven new logo acquisition as well as base expansion • Partner-driven business meaningfully outperforming overall GP g
Slide 10: Financials
Financials 10
Slide 11: Net sales – Turning to growth
Net sales – Turning to growth Net sales, SEKm 10 500 28,969 29 000 • Net sales growth Q1 4% y/o/y 28,745 28,712 10 000 28,574 28,610 28,630 • 3% organic growth Q1 y/o/y 28,505 28,515 9 500 28 500 • Americas 4% • EMEA 7% 9 000 28,099 • APAC -4% 28 000 8 500 • 3rd consecutive quarter of 27,722 organic
Slide 12: Gross profit – Also growing
Gross profit – Also growing Gross profit, SEKm 9,781 2 800 9,685 9 800 • 4% growth Q1 y/o/y 9,657 9,630 9 700 2 750 9,593 9,542 9 600 • 2% organic growth Q1 y/o/y 2 700 9,431 9 500 9,359 9 400 • All regions and all product 2 650 9 300 categories contributed to 2 600 2,582 9 200 organic GP growth 9 1
Slide 13: All regions and product categories contributing to GP growth
All regions and product categories contributing to GP growth Gross profit, SEKm 2,527 2,582 2,526 2,582 2,433 2,386 2,406 2,407 2,433 2,386 2,406 2,407 2,322 2,311 425 2,321 2,312 2,260 390 2,261 355 380 593 617 331 391 388 536 APAC 342 364 548 554 544 Applications 476 520 521 504 574 564 505 536 51
Slide 14: Network Connectivity turn around
Network Connectivity turn around Gross profit (SEKm) and organic gross profit growth, Network Connectivity, Americas • Cost increases for legacy voice network connections impacted gross profit from Q1 24 600 • Gradual improvements after -18% -12% -4% -1% 6% 490 successful renegotiations with 487 449
Slide 15: Cost control supporting Adj EBITDA
Cost control supporting Adj EBITDA Adj Opex, SEKm 2,000 • Q1 Adj Opex in fixed currency -1% y/o/y 1,518 1,519 1,483 1,579 1,519 1,500 • Gradual contribution from cost-saving program during 2024, program closed end of 2024 1,000 • Integration and restructuring efforts paying off – 500 Continued integ
Slide 16: Improvement of Adj EBITDA with essentially unchanged integration and restructuring costs
Improvement of Adj EBITDA with essentially unchanged integration and restructuring costs SEKm Q1 2024 Change y/o/y Q1 2025 Adj EBITDA 794 95 889 • Adj EBITDA +12%, +8% organic y/o/y Operational foreign 43 -110 -67 exchange gains/losses • FX revaluations of working capital main driver of EBITDA Integ
Slide 17: Positive margin development
Positive margin development Gross margin, % EBITDA margin, % 36% EBITDA margin Adjusted EBITDA margin 16% 34.0% 34.2% 13% 13% 13% 13% 33.9% 12% 12% 12% 13% 34% 33.5% 33.5% 33.6% 12% 33.4% 12% 33.1% 32.6% 12% 11% 11% 11% 11% 10% 10% 11% 8% 32% 4% 4% 30% 0% Q123 Q223 Q323 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24
Slide 18: Continued strengthening of the balance sheet
Continued strengthening of the balance sheet Net debt/Adjusted EBITDA R12m* • Continued deleveraging with Net debt/Adj EBITDA now at 1.4x • Adj EBITDA improvement and currency impact on EUR and USD 2.0 debt drives improvement 1.7 • The board proposes that the Annual 1.6 General Meeting authorize sha
Slide 19: Strong cash conversion LTM
Strong cash conversion LTM Cash conversion from Adj EBITDA, LTM Cash flow after investments, SEKm 80% 72% 1,000 903 66% 61% 800 734 60% 50% 42% 600 424 40% 400 293 20% 200 -104 0 0% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 -200 • Cash flow from operating activities after • Net wor
Slide 20: Net Working Capital within normal variations
Net Working Capital within normal variations Net working capital, SEKm* • Slightly decreased account Solid level receivables despite increased of account 4,007 3,861 4,181 4,245 4,551 3,949 receivables growth – DSO of 56 days 4,232 4,066 4,152 3,945 • Payables coming down from Temporary seasonally h
Slide 21: Sinch strategy for value creation
Sinch strategy for value creation Growth EBITDA margin Active capital reacceleration expansion allocation We are focused on profitable and We are reshaping our business to We are driving continued strong sustainable growth expand margins over time cash generation • Enterprise expansion • Product mix
Slide 22: Thanks!
Thanks! For more information, contact: Ola Elmeland Investor Relations Director investors@sinch.com
Slide 23: Pioneering the way the world communicates
175,000+ 900bn+ 60+ Scalable cloud communications business interactions countries with platform for messaging, customers per year local presence voice and email Pioneering the way the world communicates SEK 29.0bn SEK 9.8bn SEK 3.7bn net sales in the gross profit in the Adj. EBITDA in the past 12 mo
Slide 24: Income statement
Income statement SEKm Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 2024 R12M Net sales 7,532 6,792 7,041 7,150 7,729 7,049 28,712 28,968 Cost of services sold -5,006 -4,480 -4,655 -4,744 -5,147 -4,641 -19,026 -19,187 Gross profit 2,526 2,312 2,386 2,406 2,582 2,408 9,686 9,781 Operating expenses -1,708 -1,54
Slide 25: Cash flow
Cash flow SEKm Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 2024 R12M Profit or loss before tax -26 40 21 -5,963 -333 -8 -6,235 -6,283 Adjustment for non-cash items 903 574 594 6,754 991 738 8,914 9,078 Income tax paid -48 -57 -147 -99 -45 -111 -348 -402 Cash flow before changes in working capital 828 557 46
Slide 26: Cash conversion
Cash conversion SEKm Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 2024 R12M Adjusted EBITDA 996 794 867 923 1,003 889 3,587 3,682 Net interest paid -156 -131 -130 -117 -103 -76 -480 -426 Paid taxes -48 -57 -147 -99 -45 -111 -348 -402 Other items 36 -49 -122 -15 -242 -83 -428 -462 Cash flow before changes in
Slide 27: Well-covered debt maturities
Well-covered debt maturities Maturity schedule as of 31 March, SEKm 10,000 7,500 4,450 5,000 2,500 3,153 567 1,330 0 0 Utilized 2025 2026 2027 Short-term overdraft Short-term commercial facilities papers Unutilized 27