Slide 1: Q3 2023 Results | Presentation
Artificial Solutions® (SSME:ASAI) Q3 2023 Results | Presentation Per Ottosson, CEO and Fredrik Törgren, CFO Thursday, October 26, 2023 1
Slide 2: Presenters
PRESENTERS Per Ottosson | CEO Has +25 years of experience from leading positions in the software and SaaS industry Most recently spent 10 years with IPSoft (Amelia) - US based vendor of enterprise AI solutions - as Chief Revenue Officer M.Sc. Business & Administration, Stockholm School of Economics
Slide 3: The SaaS Journey
THE SAAS JOURNEY Main use New logo Product Reference Growth in Tech New First case Partnering hunting rebuilt to stories built usage at Partnering Managemen Customers productized TechMahindra, starts Cash SaaS Teneo, and existing with Azure, t Team Live (OpenQuesti CGI, Valcon Flow PS divested. publ
Slide 4: Brief Introduction to Artificial Solutions
BRIEF INTRODUCTION TO ARTIFICIAL SOLUTIONS Company overview • Founded in 2001, Artificial Solutions is a cloud-based software leader in AI • Our platform, Teneo®, is used by millions of people across hundreds of private and public sector SaaS deployments worldwide • Our solution OpenQuestion® optimi
Slide 5: Artificial Solutions' Core Market at a Glance
ARTIFICIAL SOLUTIONS’ CORE MARKET AT A GLANCE Significant potential on the global market for CAI in contact centers In the news USDbn Interactions, bn 48% Recently approved bill in CAGR Market automation Spain limits call center 50 47.0 70 wait time to 3 minutes Main driver of market growth 45 expec
Slide 6: Welcome to Customer Care
Welcome to Customer Care Customers are tired of being forced to listen to what key to press or word to say to get through your internal organization.
Slide 7: The Problem
The Problem 15-20% of calls are misrouted ▪ Customer don’t understand how to maneuver the choices and… Customer Experience is NOT great. ▪ Customer smash the keys to be ▪ Large DTMF trees are frustrating – e.g.: ”Nothing transferred to human operator matches my problem” ▪ IVR trees grow big ▪ Increa
Slide 8: No Longer. It's Time for a Change!
There is a new solution that starts outside in and works with your tech. The first implementations are done and are delivering millions of satisfied customer calls. 90% REDUCTION OF MISROUTED CALLS IN 90 DAYS No Longer. It’s Time for a Change! “Our Customer enquiry hotline will be considerably more
Slide 9: Existing Customers a Growth Engine
EXISTING CUSTOMERS A GROWTH ENGINE | COST EFFICIENT WAY TO GROW SAAS NET RETENTION RATE (%) +156% IN Q3 2023 YoY 292% 231% 170% 156% Q4´ 22 Q1´ 23 Q2´ 23 Q3´23 9
Slide 10: Q3 2023 Operations and Numbers
Q3 2023 Operations and Numbers
Slide 11: Q3 2023 Operational Highlights
Q3 2023 OPERATIONAL HIGHLIGHTS ▪ Teneo.ai launched Conversational IVR Plugin for Amazon Connect ▪ Teneoi.ai launched Connector to GCP Google Dialog Flow ▪ Telefónica launched an integrated Teneo powered LLM pilot ▪ Confidential computing security in our SaaS offering ▪ OpenQuestion 1.1 released - IV
Slide 12: Key Financial Highlights in Q3 2023
KEY FINANCIAL HIGHLIGHTS IN Q3 2023 | GROWTH RECURRING REVENUES AND IMPROVED EBITDA SaaS Recurring Revenues as % of Total Recurring Revenues Q3 2023 ▪ Net Revenue Retention 156% in Q3 2023 ▪ Recurring revenues amounted to 16.2 MSEK (10.9), + 50% 53% ▪ SaaS ARR amounted to 31.0 (23.6) MSEK, + 32% ▪ T
Slide 13: SaaS Business Model Growth
SAAS BUSINESS MODEL GROWTH | SAAS API CALL VOLUMES UP YoY SaaS API Calls September 2023* (million) + 59% YoY 20.2 18.9 18.2 13.8 11.4 9.3 5.4 2.9 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 *API Calls Active Customers 13
Slide 14: SaaS Business Model Growth
SAAS BUSINESS MODEL GROWTH | AVERAGE SAAS API CALL VOLUMES – A NEW WAY TO MEASURE – UP YoY and QoQ SaaS API Calls Quarterly Average * (million) + 72% YoY 22.7 18.1 17.0 13.2 11.1 8.5 4.1 2.3 Q4´21 Q1´22 Q2´22 Q3´22 Q4´22 Q1´23 Q´2 23 Q´3 23 *API Calls Active Customers 14
Slide 15: ARR Growth
ARR GROWTH | AVERAGE ARR – A NEW WAY TO MEASURE - UP YoY AND QoQ SaaS and Total ARR Quarterly Average (MSEK) + 53% YoY 65.0 58.2 53.7 47.9 43.4 SaaS ARR +53% YoY 35.1 36.3 34.4 28.3 29.8 22.5 24.9 Total ARR +50% YoY 17.8 12.0 Q1´22 Q2´22 Q3´22 Q4´22 Q1´23 Q2´23 Q3´23 SaaS ARR ARR 15
Slide 16: Growth in Recurring Revenues & ARR
GROWTH IN RECURRING REVENUES & ARR | GROWTH YoY AND QoQ Quarterly Recurring Revenues, SaaS and Total ARR (MSEK) Recurring Revenues + 50% 16.2 14.6 70.0 16.0 13.4 62.7 14.0 61.1 60.0 12.0 57.3 56.2 10.9 12.0 49.5 50.8 7.6 50.0 45.1 45.3 10.0 7.1 40.7 40.0 37.5 6.4 8.0 5.2 5.7 30.0 6.0 20.0 4.0 8.6 7.
Slide 17: OPEX Runrate Q3 2023
OPEX RUNRATE Q3 2023 | SIMPLIFICATION ACTIVITIES KEEP LOWERING COSTS IN Q3 2023 Annual OPEX Run Rate* MSEK 116 ▪ OPEX(*) run rate of 109 MSEK in Q3 2023 vs. 113 113 MSEK Q2 23 ▪ Monthly OPEX(*) in Q3 2023 of 9.1 MSEK (9.4 109 MSEK Q2 23) ▪ Reported OPEX decrease visible in Q3 2023 following simplifi
Slide 18: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS A prominent player in a market growing at 48% CAGR with recurring revenues growing +50% y-o-y Gross margins on fully onboarded customers approach 95% Technology tailored for enterprise solutions with blue chip customers in key industries Quality of offering paired with mate
Slide 19: Artificial Solutions
ARTIFICIAL SOLUTIONS